More Thoughts On Fuel Oil Tanks

Since January 1, 2013 in Ontario, the Technical Standards and Safety Authority (TSSA) has required that all new fuel oil storage tanks, for both indoor and outdoor installations, be manufactured with a double bottom or double wall, or be provided with an approved secondary containment.
HIGHER COST OF REPLACEMENT
When negotiating the purchase and sale of a home, REALTORS should be aware that the cost of oil tank removal and replacement with one of these new tanks will be at least $1000.00 more than what you may have been accustomed to.
* Before finalizing an agreement of purchase an sale, be sure to contact one or more local fuel suppliers or heating contractors to verify the updated cost of a fuel oil storage tank replacement in your local area. *
AN INTERESTING ALTERNATIVE
If a Homebuyer cannot obtain a new insurance policy for a pre-existing tank, and if the Seller agrees to replace the tank before closing – well that’s pretty straightforward.
However if the Homebuyer is going replace the tank, whether it be as a result of a price rebate or a cash allowance from the Seller, or out of their own pocket it might make sense to first look at the age of the heating system. If an oil-fired furnace is very new, say about five years of age or less, the most immediately cost-effective choice might be to simply switch out the storage tank – at a cost of about $2000.00 typically, and we’re back in business – and our heating system has a long life ahead of it.
However if the oil furnace happens to be older, say 15 years of age or more, or if the chimney serving the furnace requires repair, relining or replacement – then if the Homebuyer is in a position to ante up the other half of the cost, it might make more sense to put the money toward a hi-efficiency propane furnace.
WHAT ARE THE BENEFITS?
A high-efficiency propane or natural gas furnace, starting at about $3500.00 installed will cost less money to operate, doesn’t need an expensive oil storage tank and doesn’t even need a chimney!
For more information on these new requirements visit http://www.tssa.org
For more pricing information, you can Google “double wall oil tank price.” Be sure to include the name of your town and province for more accurate information.
For an excellent list of these and other home improvement costs visit http://www.carsondunlop.com

 
Copyright Gil Strachan – All rights reserved. 
Gil Strachan is a professional home inspector, representing Electrospec Home Inspection Services in east-central Ontario since 1994. For more information about home inspections visit http://www.electrospec.ca

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