Purchasing a home with an existing propane tank in the yard is a common scenario. However, before you sign on the dotted line, there are several important factors to consider to ensure a smooth transition and avoid unexpected costs.

1. Ownership: Is the Tank Owned or Leased?

This is the most critical question to ask. The answer determines who is responsible for maintenance, who you can buy propane from, and whether you have control over the tank itself.

• If the tank is owned by the seller: The tank will typically be included in the home sale. You should request any maintenance records, a copy of the last safety inspection, and ensure the transfer of ownership is clearly documented in the sale paperwork.
• If the tank is leased from a supplier: You will need to contact the current propane company. You have two options:
  • Continue the lease: You can take over the existing lease agreement with the current supplier.
  • Switch suppliers: If you prefer to use a different propane company, you may have to pay a fee to have the old tank removed and a new one installed.
• Proof of ownership: If the seller claims to own the tank, ask for a receipt or a written statement from the original supplier. This documentation is essential for proving ownership and for any future dealings with propane companies.

2. Condition and Safety

The tank's condition is directly tied to your safety and long-term costs.

• Tank Age and Condition: Ask the seller how old the tank is. Propane tanks have a long lifespan, but their condition can be affected by rust, damage, or wear. A professional inspection can identify any potential issues.
• Last Safety Inspection: Find out when the tank was last inspected by a professional. Most propane companies conduct a safety check with every new customer setup. This ensures all components, including the regulator and gas lines, are in good working order.
• Location and Compliance: Verify that the tank is installed in a safe and code-compliant location. A propane supplier or home inspector can confirm that the tank meets all local setback requirements (e.g., distance from the house, property lines, and ignition sources).

3. Propane Supply and Cost

Don't forget to factor in the practical aspects of fuel supply.

• Remaining Propane: Find out how much propane is currently in the tank. You and the seller should agree on how to handle the cost of the remaining fuel. This is typically handled through a proration at closing.
• Pricing and Contracts: If the tank is leased, ask if the seller has a fixed-price contract or a pre-buy agreement. This could affect the price you pay for propane in the first year.
• Delivery Logistics: Ask the seller about the reliability of their propane supplier and delivery schedule. This is especially important in rural areas or during winter months.

By considering these factors and asking the right questions, you can navigate the purchase of a home with a propane tank confidently and ensure your new home is both safe and cost-effective.

Protect Your Propane Investment

A little due diligence goes a long way when buying a home with a propane tank. Once you're settled, consider adding an extra layer of protection with ProDomeSeal's Propane Tank Dome Seal—a simple, effective way to shield your tank dome from pests, moisture, and debris. It’s one small upgrade that can help prevent big headaches later on.