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Selling and Have an Oil Tank? You will Need a Final Oil Reading

Selling and Have an Oil Tank? You will Need a Final Oil Reading

The standard form contract entitles a Seller to be compensated at closing for the oil remaining in the Seller’s oil tank. In order to require the Buyer to pay for the oil, Sellers must contact their oil company (ideally just before closing) to get a final oil reading(the oil company will usually charge a fee to do this). The oil company will come and measure how much oil is in the tank. They will then issue an invoice, showing the number of gallons which remain and the current value of the oil (the adjustment is typically based on the value of the oil at closing, not what the Seller paid for it).

Warning to Sellers: do not try and rely on the accuracy of your gauge for the final oil reading. Most attorneys will reject a gauge reading since gauges are notoriously inaccurate. Moreover, if your oil tank is located in a place where it is not possible to take a reading, you may have to fill it prior to closing. If you fill the tank, please make sure your oil company provides you with an invoice at closing, confirming that the tank is full and the value of the oil in the tank (based on the value of the oil at closing).

If you are selling your home and want to avoid stress and drama at your closing, don’t forget to leave yourself time to obtain a final oil reading.

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