Looking at a property with a gas station and have questions about liability and whether this is a good idea.
The property has a small market - sandwiches, soda, ice cream, milk, etc. and a gas pump.  There is a separate building with offices.  Both are occupied with long time tenants (5 to 10 years) who are doing well and the expectation is that they will stay.  The current owner says he had testing for the underground gas tanks done 16 years ago and all was good and they are inspected every year and have had no issues.

Has anyone had experience with this type of property?  What are the chances of a sudden leak?  Are there any protections? Should I run or look into it more.  Strictly monetarily - rent wise - it's a good deal.  This - environmental liability - is my biggest concern.
[{"id": "cgjzxlg", "text": "I assume you will be financing the property.  The bank will likely require you to have a Phase 1 environmental report done during your due diligence.  If they report that the ground is contaminated, you may have to have a Phase 2 report done. You can ask the environmental company who does the report if they can test the integrity of the underground tanks (I don't know if they do that, or who could).\n\nDon't base your decision off of what a 16 year old report says.  You need a new report, and contaminated ground is a big problem.", "replies": [{"id": "cgk5seb", "text": "Thanks, I definitely planned on doing new testing.  But just wondered if anyone deals (or has dealt) with this type of property.  For example, did someone do the phase one testing and all was well, but then a couple of years later the tanks ruptured.  Does this happen often?  What are some other risks I should know about.\n\nI think the current owner is either just wanting to not deal with it or has used up his depreciation (due to the timing) and wants to sell and buy something new.  I don't think he has had any issues.  But I still wonder how often things go wrong with the tanks at gas stations.", "replies": [{"id": "cgnak6s", "text": "I've never dealt with existing gas stations but have looked at many acquisition opportunities that used to have a gas station.  Most of the time, there either is an issue or there previously was an issue that got remediated.\n\n/u/eyefuel is correct on the environmental report process.  For the properties we look at, we usually commission a property condition report that describes in detail the existing condition of the property.  I'm not sure if these guys will look at USTs but they may be another resource.\n\nLastly, seller may ask for an indemnity on this and I'd make sure you fully understand what's going on if you even consider granting it.\n\nGood luck.", "replies": [{"id": "cgnh0s2", "text": "Thanks - I hadn't thought about the seller asking for indemnity.  I probably wouldn't grant it.\n\nHave you made offers?  Is it feasible to expect - and write into the offer - that if the tests came back as there being a problem and I didn't buy the property, that the seller would have to pay for the testing.  \n\nOne of my hesitations is the going forward, paying hundreds of dollars for testing that tells me I shouldn't buy and then just being out of pocket for all that money.  I know it's a risk with any property offer, but I'm imagining these tests are a lot more expensive than a regular house inspection.", "replies": [{"id": "cgnhi1h", "text": "You could try to see if the seller will foot the bill on any report, seeing as any buyer will likely need one, but I don't know if he'll agree to it.  I work for a commercial real estate investment firm and we've never had any sort of contingent reimbursements since we have a budget for such due diligence items and just chalk it up to the course of business.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ch1h7c9", "text": "Sounds like you specifically need to talk to a business broker.", "replies": [], "depth": 1}]