Since January 1, 2013 in Ontario, the Safety and Technical Standards Authority (TSSA) requires all new fuel oil storage tanks, both for indoor and outdoor installations, to be manufactured with a double bottom. or double walled, or provided with an approved tank. secondary containment.

HIGHER REPLACEMENT COST

When negotiating the purchase and sale of a home, REALTORS should keep in mind that the cost to remove and replace the oil tank with one of these new tanks will be at least $1000.00 more than what you may have been charged.

* Before finalizing a purchase and sale agreement, be sure to contact one or more local fuel suppliers or heating contractors to verify the current cost of replacing a fuel oil storage tank in your local area. *

AN INTERESTING ALTERNATIVE

If a homebuyer can’t get a new insurance policy on an existing tank, and if the seller agrees to replace the tank before closing, that’s pretty straightforward.

However, if the homebuyer is going to replace the tank, either as a result of a price discount or cash allowance from the seller, or out of pocket, it might make sense to first look at the age of the heating system. If an oil furnace is very new, say five years old or less, the most cost-effective option right away might be to simply change out the storage tank, at a cost of around $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 is older, say 15 years or more, or if the chimney serving the furnace requires repair, relining, or replacement, then if the homebuyer is able to contribute the other half Considering the cost, it might make more sense to invest the money in a high-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 city and province for the most accurate information.

For a great list of these and other home improvement costs, visit http://www.carsondunlop.com