Leaking oil tank + cracked heater exchange

newbie_oil

Hi everyone,

We recently sold a house with very specific wording in the contract: we warranted that fixtures and chattels were in good working condition to the best of our knowledge, with the warranty expiring after 24 hours. After that 24-hour period had passed, we received notice from the buyer that the oil tank was leaking and the furnace combustion chamber had a crack (based on an inspection).

We had no idea about these issues and still dispute them. I’m not looking for legal advice here, just some practical input from heating experts. The inspection report included photos that conclude the oil tank is leaking and the chamber is cracked. For context: the oil tank is over 22 years old (yes, its age was obviously known during inspection), and the furnace is probably about 15 years old.

I admit I’m not an expert, so please bear with my questions:

1. Does the picture of the inside of the tank actually show a tank that needs to be replaced? I understand rust + age mean replacement is coming eventually, but does the rust in the photo prove it’s not in working order?
2. Could there be moisture on the outside of the tank that isn’t heating oil — for example, just water condensation? Do the photos show anything that confirms it’s definitely oil?
3. If heating oil were leaking, wouldn’t there be a very obvious smell? Wouldn’t items stored in the same room (clothes, toys, furniture, etc.) also carry that smell?
4. Regarding the furnace: none of the attached photos clearly show cracks in the combustion chamber to me. Am I missing something?
5. If there really were cracks in the combustion chamber, would it be likely that a CO detector on another floor would go off?
6. Is there anything else fishy about these inspection reports?

Thanks in advance for any help or feedback.

EdTheHeaterMan

If the first picture is a steel combustion chamber then those small cracks are meaningless. If however those are cracks in the heat exchanger, then that is not in operating condition. the difference is that the combustion chamber where the fire actually burns is inside the heat exchanger and, in most cases, the combustion chamber is a replaceable part. However, if those cracks are in the heat exchanger then that heat exchanger is no longer safe to operate because the exhaust gasses are able to migrate into the duct system and harmful exhaust gasses can enter the living space. You need the get clarification on what that is a photo of.

As far as the fuel tank leak, I'm not seeing it in those photos. The stain on the floor can be from overfilling the fuel tank one time from years ago. These stains indicate that oil may be coming from the top fitting(s) of the tank indicating that there is no actual bottom leak of the tank.

That will happen if the pipe joint compound on the 8 or 10 fitting joints of the fill pipe or vent pipe were not properly sealed at the time of installation many years ago.

There is another photo of what appears to be the bottom of the tank where the block wall is in focus and the tank bottom is out of focus. If that is a picture of the actual leak, then it is not cleat to me that there is a leak at the tank bottom.

I don't know how your state real estate laws work, but why was this inspection not completed before settlement? Seems like this fuel dealer is looking for a payday as a result of the situation. The new owner is afraid to use the heater and have the tank filled. Can't fix that, So someone is going to pay for a furnace and an oil tank, unless you can convince the new owner to get a second opinion without giving away the farm so to speak. If I was called for a second opinion and was told in advance the I think the furnace needs replacing and the tank needs to be replaces, then I will see $$$$$ and agree to get the sale.

if I were asked to be a new customer of an oil company to purchase fuel oil and would they be kind enough to inspect my equipment before the first delivery, then I might not find any fault in order to get the new fuel delivery account

Looks like you have a conundrum on your hands because you don't live there anymore to control the narrative.

newbie_oil

If the first picture is a steel combustion chamber then those small cracks are meaningless

I found clarifications in some documents that this is a picture of the heat exchanger, however all documents reference that the cracks are in the combustion chamber.

Would there been any way that someone could have "known" about these cracks without a professional? The furnace would have still functioned as is, correct?

We did have a CO detector but it was not set off.

As far as the fuel tank leak, I'm not seeing it in those photos. The stain on the floor can be from overfilling the fuel tank one time from years ago. These stains indicate that oil may be coming from the top fitting(s) of the tank indicating that there is no actual bottom leak of the tank.

Indeed this is the case, the tank was once over filled many years ago. We didn't consider putting this in our defense but I guess it makes sense to do so.

Why was this inspection not completed before settlement? Seems like this fuel dealer is looking for a payday as a result of the situation.

Appreciate your opinion and the additional information that you provided. There was an inspection prior to closing and none of these issues were raised.

Our contract clearly states (paraphrased) that to the best of our knowledge we warrant that things are in good working order, this warranty expires within 24 hours. We probably have enough basis on this alone, as he cannot prove that we knew (because we didn't) and he raised the issue well past 24 hours.

However even with the above legal terms in our favor I want to have as strong as a defense as possible.

EdTheHeaterMan

I found clarifications in some documents that this is a picture of the heat exchanger, however all documents reference that the cracks are in the combustion chamber.

Would there been any way that someone could have "known" about these cracks without a professional? The furnace would have still functioned as is, correct?

We did have a CO detector but it was not set off.

The only way to know about the heat exchanger cracks without a professional actually testing for them is physical symptoms like headache from inhaling the byproducts of combustion, or seeing soot buildup on the walls. If you had no symptoms then you could not know. And this is possible if the furnace blower was pushing ductwork air into the cracks. You would only have symptoms if the exhaust gasses were leaking out of (not into) the heat exchanger… into the air that goes thru the ductwork

As far as the oil tank, you have no knowledge of a prior leak except the one that happened years ago from overfilling. That overfilling issue has been handled many years ago and was not considered by you as a reason to answer in the affirmative to any question regarding specifically a leaking oil tank or in a general statement regarding "all fixtures and chattels". You did not lie on that form by answering that you did not know of any problem. Sounds like the lawyers need to talk legalese.  (That is a French word that means you’re screwed)  I just don't know which side they screwed.

EBEBRATT-Ed

They signed the deal. Tell them to pound sand. I am sure they had ample opportunity to inspect before the sale.

What does your lawyer say?