Posted by mark on January 26, 2005 at 13:03:22:
It is a home heating oil tank. Thank you both for your comments on this matter.
Mark
oil leak found after contract has been signed - Posted by Nancy
Posted by Nancy on January 21, 2005 at 18:10:17:
I have signed a standard contract to purchase a home on Long Island. I have already received a mortgage commitment and was in the process of purcahasing insurance for the home. In dealing with insurance companies, i have learned that most companies will not issue policies for homes with underground oil tanks. As a result of this difficulty, my lawyer suggested an environmental assesment of the property. I have since learned that there has been an oil leak. Does this validate breaking my contract without losing my 10% down payment given at time of contract?
Re: oil leak found after contract has been signed - Posted by chet
Posted by chet on January 23, 2005 at 15:37:21:
was this an fuel oil tank for heating, or was there previous commercial use on the property.
Re: oil leak found after contract has been signed - Posted by Tom-FL
Posted by Tom-FL on January 21, 2005 at 20:44:11:
I see a few things you may want to consider.
First, check the boilerplate on the contract for environmental language. You may have an out there.
Second, did you put in an inspection contingency and has it expired or not?
Third, do you have a financing contingency? If so, then just tell your lender about the leak and it’s a pretty safe bet they will pull your mortgage commitment so fast that it’ll make your head spin. No one wants to be the lender on a superfund site.
Too late now, but 10% is WAY too much to earnest money. You should bring the down payment to closing and not before.
Oh, also … if you have evidence the seller knew/knows about the leak, that gives you a lot of leverage.