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Real Estate

Who is responsible for the cost of removing an underground storage tank found on a property in Ontario?

TSL Written by the Treadstone Law team· Updated August 2026

The owner of the property at the time an underground storage tank and any associated contamination is found generally bears responsibility for dealing with it, since Ontario's environmental framework focuses on the current state of the land rather than only on who caused a problem. That means a buyer can end up responsible for removal and any related soil remediation even if a previous owner installed or abandoned the tank decades earlier.

Whether that cost can be shifted back to a seller depends on the facts: what the seller knew, whether the tank created a hazard the seller failed to disclose, and what representations, if any, were made in the purchase agreement about the property's condition and systems. This is why environmental due diligence matters most on properties with any history suggesting fuel storage, whether commercial, industrial, or an older home that may once have used oil heat. A buyer who has reason to suspect a tank might be present, from a home's age, a filled-in driveway patch, or an old vent pipe, should raise it before closing rather than after, since pre-closing negotiation over cost and responsibility is far more workable than a post-closing dispute.

Key takeaways

  • The current owner is typically on the hook for removal costs once a tank is found.
  • Recovering costs from a seller depends on what they knew and disclosed, and any contract terms.
  • Older homes with possible former oil heat warrant specific pre-purchase questions.
  • Raising a suspected tank before closing is far easier to resolve than after.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone real estate lawyer can help.
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