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Charging for fuel oil at house closing?
started by arcticcatmatt
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May 6th 2008 at 10:01 AM
[ Modified May 6th 2008 at 10:02 AM
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arcticcatmatt
Spleen Splitter
arcticcatmatt leaving after work for 3 days of shotgun season back home!
Updated Yesterday at 12:16 PM
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They have got to be joking.
Anyone know anything about this? Is this legal?
Someone fills their fuel oil tank a year ago when its $1.50 cheaper than it is now. 1/2 of it is still there, so they want me to pay for 1/2 the gallons at todays rate?
pFFFFT!
That means I am now expected to come up with money to pay for 187 gallons at 4+ dollars a gallon.
I am not happy.
The seller would be making a profit and this is just stupid.
My girlfriend didn't tell the dealer they had to pay her an extra $60 for the fuel that was in the tank of her SUV she just traded!
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May 6th 2008 at 10:43 AM
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erick
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I would tell them to go to hell. That's part of the house that you just bought! They're just looking for a way to make another quick buck.
Breaking free from the thoughts in my mind
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May 6th 2008 at 10:56 AM
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Jerkyking
The voice of Common Sense...
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Quote originally posted by erick
I would tell them to go to hell. That's part of the house that you just bought! They're just looking for a way to make another quick buck.
I agree, thats anal. The house I bought last year had and empty 500 gallon propane tank so I couldn't test the gas heater in the basement. It worked no problem but I had to pay $60 extra to have the tank serviced since it was empty (leak check). I should have insisted they get gas to atleast allow the heater to be tested and checked.
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May 6th 2008 at 11:13 AM
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Rubi
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If something is left at the house that isn't included in the contract, you don't have to take it. If there are extra appliances, or a lawnmower or something left at the place, the buyer and seller have to agree on a price and if the buyer even wants it. Tell them you'll give them half price for the heating oil, or they can siphon it out and take it with them.
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May 6th 2008 at 11:18 AM
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Luke
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I have heard of this from my boss, he flips a lot of houses. But wanting you to pay todays rate is outrageous. I would agree that they are trying to take advantage of you.
I know how how you feel Matt. I just closed on my first house March 20. It was a HUD house and I got a refurd mortgage (203K) so the closing fees were outrageous and I felt like I was getting raped. The closing fees just kept piling up.
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May 6th 2008 at 11:44 AM
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MACHZRider
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Thats a bunch of BS! I agree, tell them to take the oil out if they want it. It's part of the house and the heating system. If it's not in the contract tell them to go to hell. Summer is coming, you won't need it right now and with the price of oil, might better just build a fire pit in your living room!
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May 6th 2008 at 12:10 PM
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01cbr
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Quote originally posted by arcticcatmatt
They have got to be joking.
Anyone know anything about this? Is this legal?
Someone fills their fuel oil tank a year ago when its $1.50 cheaper than it is now. 1/2 of it is still there, so they want me to pay for 1/2 the gallons at todays rate?
pFFFFT!
That means I am now expected to come up with money to pay for 187 gallons at 4+ dollars a gallon.
I am not happy.
The seller would be making a profit and this is just stupid.
My girlfriend didn't tell the dealer they had to pay her an extra $60 for the fuel that was in the tank of her SUV she just traded!
Tell them they can keep the fuel.
If its not in the contract I can see any way for them to make you pay if you dont want to.
Im sure the house wasnt cheap....for them to let it go for nothing isnt a big deal......but with the amount you have just spent it is a big deal to you to pay for it.
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May 6th 2008 at 12:11 PM
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Bear1
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If it isn't in the contract you don't have any obligation to pay for it. If it is or you don't feel like making waves have them show you the bill from the last fill and offer to pay at the rate they paid for it. If they haven't kept the bill they should be able to get a copy from the Oil delivery company.
Good luck
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May 6th 2008 at 12:38 PM
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arcticcatmatt
Spleen Splitter
arcticcatmatt leaving after work for 3 days of shotgun season back home!
Updated Yesterday at 12:16 PM
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Quote originally posted by MACHZRider
Thats a bunch of BS! I agree, tell them to take the oil out if they want it. It's part of the house and the heating system. If it's not in the contract tell them to go to hell. Summer is coming, you won't need it right now and with the price of oil, might better just build a fire pit in your living room!
I am going to have to check the contract. I am pretty sure fuel oil wasn't mentioned. Its just a common practice I am told because your buying the house and the land.. your not buying the fuel oil thats in the tank.
The house has a russian fireplace also. The hot water is fuel oil and it has 3 zone hot water baseboard heating.
I have emailed my lawyer and realtor that I think its crap is it the law. I want to see proof. I also told them that if I HAVE to pay for it, I will pay for it at the rate he filled it up at. I want the dimesions of the tank and I want it dipped to see how many inches are in it. I will calculate the amount of fuel oil in the tank and pay for THAT amount AT the rate he got it filled at over a year ago. That is the only fair solution. If they don't want to comply, suck it out and I will pay someone to come in and put fuel in it. At least then I know I am paying for what is in there and not a guess of a gage where 1/16 = about 15 gallons.
Lets see how this pans out.
My realtor and lawyer said almost everyone pays for the fuel oil in the house they buy (or propane)
Fuel oil here is 4.15/gallon I am told by a coworker who got it last week.
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May 6th 2008 at 12:40 PM
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JD
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It seems like BS, but it is very common. I have bought two houses and sold one. The propane in the tank was accounted for each time. You don't really have any leverage, because you cannot go back in time and buy fuel oil for $1.50. If it's worth $4.00, then that is what it's worth. It is really irrelevant what they paid for it. But, I would try to buy it for what their receipt shows they paid. You are buying real property and its attachments. Fuel oil must be considered personal property, even if it's in the tank, which IS an attachment to real property. I'm not sure on all the legal intricacies.
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May 6th 2008 at 12:40 PM
[ Modified May 6th 2008 at 12:43 PM
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polaris_800rmk
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Tell them they can keep the whole house. In the 2 places we bought there was never any mention of the oil.
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May 6th 2008 at 1:28 PM
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arcticcatmatt
Spleen Splitter
arcticcatmatt leaving after work for 3 days of shotgun season back home!
Updated Yesterday at 12:16 PM
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^ Not an option. If I were to walk away at this point I would lose just over 2,000 dollars as I have given that out for services that are not refundable.
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May 6th 2008 at 4:52 PM
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polaris_800rmk
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Well, I would also consider value of house vs value of fuel, for example, say 200,000 dollars for home (sorry if you mentioned actual price you are paying, I did not see it if you did), 300.00 for fuel oil that is in barrel, really in the big picture that 300.00 isn't even a drop in the bucket, is it really worth a bad taste in your mouth if you like the house? If it were a 10,000 dollar item that would be a little different. Just something else to consider to calm the nerves. Plenty of other things out there to get bent out of shape about than this. Enjoy the new home.
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Its not the size of the track, its how you use it
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May 6th 2008 at 5:15 PM
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I would tell them if they want a penny for it they need to show you a reciet of the price they paid, then you will give them that price for the amount in there.
otherwise they can pay someone to come pump it out and take it to the new place they are going. either way you have the hand in this situation. if you dont pay for it they have to spend money to get rid of it.
nothing goes like 3 holes!!
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May 6th 2008 at 6:12 PM
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brian126
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I would suggest offering them to purchase the fuel at $3.00 per gallon. It would save you some money by not having to purchase the same fuel again for $4.00 per gallon. If they don't go for that, then tell them to come and pump the tank out. I think you have the upper hand in this case.
#1 to have a bulk supplier come and pump out a tank is going to be spendy for them as they will have to pay a per hour rate for labor. Most of the fuel suppliers in our area are charging a fee of $.15/gallon just to deliver the fuel (with a 500 gallon minimum purchase). Just imagine what it will cost to have two people come and pump the fuel back out of the tank.
#2 most bulk suppliers do not want to pump fuel from a tank back into their truck for the fear of getting some sort of contaminant into the truck that could in turn contaminate other fuel that may be hauled in the truck in the future.
#3 If the fuel is over a year old, get it tested for algea growing in the fuel. The new fuels have a lower sulfer content and are more prone to having crud growing in the tank, which will in turn plug the fuel filter.
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May 6th 2008 at 8:14 PM
[ Modified May 6th 2008 at 8:15 PM
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tomjac
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It's certainly not unheard of. Is it in the offer or counter that you've signed? If so, you've already agreed to it.
As stated above, you could offer them a lessor amount, or you could tell them to pump it out at their expense. They want to sell the house as much as you want to buy it. Until you close, the deal is not done regardless of the monies each party has spent to reach this point in the negotiation.
This is small potatoes when it comes to home ownership. Regardless, you will have to fill in the fall when it could reach $5.50 per gallon. You will still have closing costs, recording fees, title work, etc. Buying a house is stressful, I'm sure you will be quite proud once you finally own your piece of this great land.
Incidently, when I traded my 2500 HD last year (gas was $3.69) it had a little more than 1/2 a tank. I made the deal that I would take the gas or they could give me $60 cash. The dealer parted with the cash.
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May 6th 2008 at 8:56 PM
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ddogg69
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Tell them to have it pumped out. When i have rented houses if i just filled it and then decided to move. The company that i bought it from would pump it out and buy it back. I have done a few times. It should be the same for you i would think.
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May 7th 2008 at 8:46 AM
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arcticcatmatt
Spleen Splitter
arcticcatmatt leaving after work for 3 days of shotgun season back home!
Updated Yesterday at 12:16 PM
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I got this in an email from him. Now the size is 275 gallons (pheww)
FUEL OIL
• 275 gallon tank
• About ½ full = 137.5 gal
• Last purchase was 150 gal for $556.05 ( approx $3.70/gal)
• Settle for 120 gal @ $3.70 = $444.20
My lawyer said its in my purchase agreement. Damn. It is at home and I can't review it. Looks like I am going to agree to that.
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May 7th 2008 at 9:00 AM
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JD
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May 7th 2008 at 9:13 AM
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98700xcBB
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Seems fair, you would have to spend more than that to get "new" fuel.
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May 7th 2008 at 1:19 PM
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Ya it is legal, when I bought my 2nd home, we could have been charged for the propane, but wrote it into the purchase agreement, same with when I sold it, I said it was included in the purchase.
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May 7th 2008 at 2:56 PM
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AKnarrowback
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Sounds like a fair deal if there is proof of what they paid and what remains in the tank. The bill has to be paid one way or another.
It all depends on that legal document..... There is always a hidden cost you didn't see when you step into buying a home. On all three houses we agreed on the remaning fuel and had it written into the contract that on the day of closing we would dip the tank and cash out the fuel to the previous owner when they handed us the keys.
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May 7th 2008 at 4:43 PM
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arcticcatmatt
Spleen Splitter
arcticcatmatt leaving after work for 3 days of shotgun season back home!
Updated Yesterday at 12:16 PM
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14006 Posts
Group: Moderators
Member Since: November 25th 2001
Location: Berkshire, NY, USA
Current Sled: 96/97 ZRT 600
2008-2009 Miles: 450
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Its not really that I minded paying, I just didn't like what was first told to me.
Wrong tank size and a guess at what was in it and charge me todays rate.
I do think its crap to charge the buyer for it at the last minute.. But.. its a fair offer so I informed him I will have the money at the closing table. Guess there goes the 600 bucks the government just gave me for a tax refund.
oh well.. good cause
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May 8th 2008 at 1:08 AM
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AKnarrowback
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Is this your first house?
Trust me, this won't be the last time you see a chunk of change, that you had other plans for, go away.
They say a boat is nothing more than a wood-lined hole in the water into which you throw money... I'm not sure if there is a similar saying for a house. My last place was like that closet out of "Poltergeist" where things get sucked into it (money) and you never see it again. The two years we spent fixing it up slowly ate away at my dream of ever getting a new sled, but a good home is worth it.
96 xlt sks/rmk. custom 5.5 inch riser on the bars, custom air intake, custom front shock mounts, custom oil feed channel in block to inner pto end bearing, primer (I hate chokes), custom = I made it myself
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May 8th 2008 at 7:54 PM
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wilb
Advanced Member
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To bad they didnt take it with them. Then you cold swap the boiler out for a much cleaner Nat gas or LP high efficiency boiler. Lots less matinence and it doesnt stink.
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