Selling Your Home? Don't Let a Fuel Oil or Propane Tank Slow Down Your Closing

If your Southern Maryland home has ever been heated with fuel oil, or if you currently have a propane tank on the property, that tank can quietly become one of the biggest holdups in your home sale. Buyers, their lenders, and their insurance companies are paying closer attention than ever to tanks on a property, and a little preparation now can save you a delayed settlement later.

Why Tanks Matter So Much at Closing

Maryland requires sellers to complete a Residential Property Disclosure and Disclaimer Statement, and underground storage tanks are specifically called out on that form. Whether you choose full disclosure or sell "as-is," you're still required to disclose known material defects, including a buried oil tank. Courts in Maryland have awarded damages in cases where a seller knew about a buried tank and didn't disclose it, so this isn't a box to skip.

Beyond the legal side, an oil tank can stop a sale cold in a much more practical way: many mortgage lenders and homeowners insurance companies simply won't close on a property with an underground storage tank still in the ground. If that requirement surfaces during underwriting, it can delay or even derail your settlement date while the tank gets addressed.

Underground Oil Tanks: Know Before You List

Most homes in our area that still have a buried oil tank were converted to another heat source years ago, and the old tank was simply left in the ground. Heating oil tanks typically last about 20 years, and the vast majority of buried residential tanks still in Maryland yards today are well past that age. A few signs there may be a tank you don't know about:

• A pipe or cap sticking up out of the lawn near the house
• An oily sheen on the soil after heavy rain
• A faint fuel oil odor near the foundation
• An older furnace or boiler that shows signs of a past oil-to-gas or oil-to-propane conversion

If a tank is found, Maryland law does not allow it to simply be filled and buried. Whether it's removed or properly abandoned in place, it has to be cut open, cleaned out, and inspected — and if there's any sign of a leak, the Maryland Department of the Environment can require well water testing before the sale can move forward. Your regular annual well water test does not check for petroleum, so that step catches sellers by surprise more often than you'd think.

The bottom line: if you suspect there's an old tank on your property, have it evaluated well before you list — not after an offer is already on the table.

Aboveground Oil Tanks and Propane Tanks

Aboveground fuel oil tanks are far less likely to trigger the same regulatory hurdles, but buyers and home inspectors will still flag a rusted, dented, or clearly aging tank as a red flag. Before you list, it's worth having your tank inspected and confirming it's in good working condition.

Propane tanks add one more wrinkle: ownership. If your tank is leased or owned by your propane supplier, that needs to be spelled out clearly for the buyer, including whether the buyer will need to set up their own delivery account or assume the existing lease. Sorting this out ahead of time keeps it from becoming a last-minute negotiation at the settlement table.

A Simple Pre-Listing Checklist

• Walk the yard and look for any signs of an old, forgotten oil tank
• If you have or suspect a buried tank, have it professionally evaluated for removal or proper abandonment before you list
• Have any aboveground fuel oil tank inspected and serviced
• Confirm whether your propane tank is owned or leased, and gather the paperwork
• Be upfront on your Maryland disclosure form — it protects you as much as it protects the buyer

Handling your tank situation early doesn't just protect you legally — it keeps your closing on schedule and gives buyers one less reason to negotiate. If you have questions about your propane or fuel oil tank as you prepare to sell your Southern Maryland home, give SJ Johnson a call at 410-257-2515. We've served Calvert, St. Mary's, Charles, Prince George's, and Anne Arundel Counties for years and are happy to help you sort out what your tank needs before it becomes a closing-day surprise.