Can You Sell a House in New York with an Underground Heating Oil Tank?🏠

Tri State Environmental Services
Oct 16
2 min read

If you own a home in Westchester, Putnam, or Dutchess County—especially in places like Mahopac, Somers, Bedford, Chappaqua, or Hopewell Junction—you may be asking whether you can sell your property if there’s an underground heating oil tank on-site.

The short answer? Yes, but not without preparation. Addressing potential tank issues early can protect your investment and make your home far more appealing to buyers.

Aging Oil Tanks Can Complicate a Sale

For decades, underground steel heating oil tanks (USTs) were installed throughout the Hudson Valley, including the Town of Carmel, Putnam Valley, and Scarsdale. Many of these tanks are now 25+ years old—well past their lifespan—and prone to corrosion and leaks.

A leaking tank can contaminate soil and groundwater, leading to costly environmental cleanup that may not be covered by insurance if your policy includes a “pollution exclusion.” Homeowners in older areas like Croton-on-Hudson, Mount Kisco, and the Town of Cortlandt should be especially cautious.

What Buyers and Lenders Are Looking For

Today’s buyers and mortgage lenders are increasingly wary of homes with buried oil tanks. Even if your tank hasn’t leaked, its presence alone can cause concern.

In areas like New Rochelle, Eastchester, Mamaroneck, and Larchmont, lenders may refuse financing until the tank has been removed or decommissioned. Buyers in Pleasantville, Tuckahoe, and Ossining are also aware of the risks and may walk away from a deal rather than take on the liability.

Simply put, an underground tank can delay—or even derail—a sale.

Why It Pays to Act Before Listing

Whether you’re in Scarsdale, New Castle, or Rye, removing an old tank before listing is one of the smartest moves you can make.

Hiring an OSHA-trained, environmentally certified contractor to remove or replace the tank can:

✅ Boost buyer confidence
✅ Eliminate lender concerns
✅ Reduce environmental and legal risk
✅ Protect your community’s groundwater

Proactive removal not only speeds up your sale but helps you avoid last-minute surprises during inspections or appraisals.

Don’t Wait for a Problem

If you’re selling in Greenburgh, Hopewell Junction, or anywhere in the Hudson Valley, handle your tank issue before a leak or inspection problem surfaces. Even if you’re not ready to sell today, taking care of it now provides peace of mind and safeguards your property’s value.

Disclaimer

This post is for general informational purposes regarding underground heating oil tanks in New York. It is not legal or environmental advice. Regulations vary by municipality.

Always consult: