HUD Property With No House
Just saw an ad for HUD property without a house. They say there is oil tank on site. and claim no responsibitly. Lest just sa for some crazy reason im intrested in it. I have many questions hopefully some bodys hads answers.
1) if i want to do some Due diligence can i after i subit a bid?
2) If my due digengece says do not buy cause of oil tank can i reject offer?
3) How do i find out the evel of contaimation?
4) How is the contanination handled and who gives final apporval of it being clean?
Many others also. Please help
If I buy a property with possible contamination, I title it in a throw-away entity.... such as a trust or LLC created precisely to hold this property.
acjr,
You need to contact a geologist to evaluate the soil.
I had a rehab I fixed up and sold last year, prior to closing though the lender required the tank to be removed.
State law said it did not have to be removed as long at it was under a certain size......however because I did not want to lose the sale, I had it removed, soil tested and went to closing.
As Joe said, it can get expensive if there is significant contamination............EPA will then have to come in which means $$$$$$.
Most of the oil tanks you come across are UST (underground storage tanks and are typically less than 1000 gallons. My geologist probe approximately 18 inches under the bed of the tank after removal, collect samples and sent me a bill for $823.00
Gave the lender a letter showing no contamination.
When all was said and done, it cost me about $1500.00
NC_Yank