Propane Tank ownership

Old 03-06-14, 08:49 AM
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Question Propane Tank ownership

I am considering buying a home with 3 500gal propane tanks that I believe are presently owned by the Gas Company.

When I buy the home - why is not my position that I now own the tanks.
That is to say, the leased tanks are on my property and either they can come and take them if I so allow, or they become my defacto property by virtue of never entering into an agreement with gas company regarding them.

In fact, I should be charging them rent.

Obviously I would have to have my alternative supply in place before taking such a position, but am I on strong ground here?
Old 03-06-14, 09:40 AM
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You can waste your money on a lawyer or just use common sense.

As to being on strong ground, you are walking on water and don't know where the rocks are.

I guess you also want the electric company to pay you for the privilege of having a meter on your house.
Old 03-06-14, 09:44 AM
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Simple solution, make it a condition of the purchase that seller contacts gas company and has them removed prior to closing.
Old 03-06-14, 10:53 AM
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I had a gas company owned propane tank on my fla property when I sold it. There was an extra paper at closing that addressed the contents of the tank which I signed over to the new owners. I only owned the LP, not the tank. I think the new owners had to sign an agreement with the gas company or the tanks would be removed.
Old 03-06-14, 01:09 PM
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The tanks are the property of the gas company and are leased to the property owner. You will have papers to sign at the closing which detail that. You will also purchase the residual propane in the tanks from the owners at the closing unless some other arrangements are made and agreed to by both parties. Either way, the details will be addressed at your closing. You do not take ownership of the tanks, only the gas.

Is this your first home purchase? These questions should be directed to your real estate attorney.
Old 03-06-14, 01:09 PM
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None of that train of thought makes any since to me.
Your going to need to get gas from someplace.
No gas company's going to come fill someone else's tanks.
If you switch company's one call and the other company will come get there tanks.
As long as your using more then the minimum required amount in 12 months the tanks are free.
Old 03-06-14, 02:15 PM
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I had a gas company owned tank (buried 320 gal) and the company charged a very high premium per gal to fill it. I was able to buy the same tank from the gas company so now I own it and get a decent price per gal.
Old 03-06-14, 04:30 PM
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Personally I'm a fan of owning your tank. This often lets you purchase from other suppliers and shop for the best price. There is also usually a lower price per gallon if the tank is owned. So, I'd look into having the three tanks removed and buy a 1'000 gallon or larger tank.

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