I’m Selling My Propane Powered Home, Now What?

Selling a Propane-Powered Home

The housing market in California is slowing but that doesn’t mean there aren’t still homes going on the market. Propane customers are still looking to sell and, if that’s you, we have all the information you need for a smooth propane transition.

I just sold my propane powered house, what do I do now? OR I’m thinking about selling my house – what do I do with my propane service?

First and foremost, you should contact Delta Liquid Energy to inform us that your home is now in escrow. When is a good time to contact us? It’s best to hold off until you are five to seven business days away from close of escrow. This will ensure all contingencies have been removed and the sale is being finalized. We will schedule an appointment for the day you exchange keys with the new owners. At this appointment, we will read your propane tank gauge to estimate how much fuel is left in the tank. We will also conduct a safety gas check for the new homeowners at that time.

Similar to other utilities, it’s important to let your propane supplier know when you are selling. This will help avoid any potential interruption of service for the new owners. It also ensures financial responsibility for the remaining propane in your tank is passed along to the new homeowner.

We recommend that you negotiate the monetary value of the propane left in your tank as part of your sale by requesting that the new buyer purchase the remaining propane from you.

It should be noted that all propane sales with Delta Liquid Energy are final.

When contacting us to inform us of your intention to sell your home, we encourage you to supply us with as much contact information as you can. We’d like to be able to reach your real estate agent, your home buyer, and their real estate agent. This information will allow our sales team to be in contact with the new homeowners immediately, provide professional propane service throughout your sale, and ensure a smooth transition for all.

Second

You will want to ensure your escrow documents include a SWPI form (Septic Inspection, Well Inspection, Property Monument, and Propane Tank Allocation of Cost Addendum). Most real estate agents will be well versed in this form so check with yours to find out the full details applicable to your sale. In regards to propane service, this form will clearly state:

  1. Who the owner of the propane tank is – whether you are using Delta Liquid Energy owned equipment or the equipment has been purchased by you over the course of owning the home.
  2. Who the current propane provider is and how to be in contact with the company.
  3. Whether or not the buyer will be purchasing the propane currently in the tank from you (the seller) or if you will be gifting this fuel to the new homeowner.
  4. Any other line items you are asking the buyer to pay for regarding the propane service of the home.

This form will be very important to you as the seller. It will clearly line out who is responsible for the fuel in your tank. It will also help to avoid any potential discrepancies regarding propane tank ownership after the sale of your home.

Another form to keep an eye on is your Listing Agreement. This will also have a space for you to indicate whether the propane tank on your property is owned by you or owned by the propane company servicing your property.

Third

We will re-assign your account to a “will-call” delivery account. This is especially important if you were previously a regularly routed customer. This switch will mean you, as the seller, will be responsible for monitoring the tank until the new homeowners receive keys. This is to ensure the tank does not get automatically refilled, leaving you financially responsible for that delivery. Ideally, you will continue to use the remaining propane in your tank and will not need to be refilled before ownership of the home changes. Being a “will-call” customer will give you the ability to determine whether or not you’d like additional propane, should that scenario arise.

On the day your keys are exchanged, we will read your tank’s gauge, do a complete safety inspection, and set up new service for the new homeowner. Should there be any gap between when you move out and the new homeowner moves in, we will require the propane system be shut off in order to maintain the safety of the system. Every situation in which a customer is selling their propane powered home is unique. We will work together with you and the new owner to ensure a seamless transition.

If escrow falls through and you’ve already arranged to have your tank gauge read, please let us know so we can cancel that appointment thus avoiding any potential interruption in service for you.

 

I didn’t know I needed to contact you ahead of time, I’m moving out today, now what?

It is best to contact your propane provider before your escrow closes. However, we will still help transition service to the new homeowner as smoothly as we can – even if you’ve let us know about the sale on the day you’re moving out. What this may create is a discrepancy between the amount of propane the seller claims is left in the tank and what we as the propane company deduces based on the tank gauge reading the day we come out. For the best estimate on the day you move out of your home, it is necessary for you to call Delta Liquid Energy with ample notice, five to seven days in advance.

We cannot schedule same day appointments for tank readings. We will schedule an appointment to read your tank’s gauge within 48 hours of you notifying us, or on the day you move out, whichever comes second.

I’m taking one or all of my propane powered appliances with me, do I need to let Delta Liquid Energy know this?

Great! It is very common for homeowners to take appliances when they move – especially a clothes dryer. Please let us know about this. If you are removing or disconnecting any appliances during your sale, it is required that your propane system be properly shut off by a Delta Liquid Energy certified technician. We can work with you on a timeline so that there is little interruption in service from the time you move out to the time your new buyer moves in. Please communicate your intent to remove appliances with us so that we can perform proper safety checks and shut off your system correctly.

Our service agreement states that customers must let us know if there is any addition, removal, or maintenance to any propane powered appliances. This is so we can come and make sure a full safety inspection is completed on your new appliance. The same applies when you remove an appliance upon moving out. We want to ensure the safety of that system for the new homeowner.

What if there is a gap in time between when I move out and the new buyer moves in?

We will need to shut off the system. Why? “We want to be sure the system has the same integrity as when we did the initial gas check and safety inspection,” says Paso Robles district sales manager, Rob Greene.  Our first priority is safety – safety of the family moving out of the home and the safety of those moving in. If there is any lapse in the time between when you, the seller, moves out and the buyer moves in then there has been time when the system is unattended. This is similar to other utilities such as gas and electricity. Your system will be shut off and taken out of your name then restarted and put into the name of the new homeowner.

Whether there is a time span between when you move out and the new buyer moves in or not, we will always require a safety inspection and gas check prior to starting service with the new homeowner. This is to ensure the propane system is up to the safety standard of Delta Liquid Energy. We will schedule a time within two weeks of the new owners taking possession of the keys for our technician to come and inspect all propane powered appliances, the propane tank, and all associated equipment.

How do I know who owns the propane tank on my property?

The first step in finding out who owns the propane tank on your property is to see if there is a company issued decal on the tank. If it is marked with a sticker including a logo, phone number, and the phrase: “Property of and serviced by” then the homeowner does not own that piece of equipment. It is likely you also do not own the regulator, pigtail, or any other connections associated with the tank. If this is a Delta Liquid Energy decal, give us a call right away to keep us informed on your sale.

 

 

company owned propane tank

If there is no visible decal on your tank, this does not automatically mean it is yours. We recommend calling your propane provider to see if they have a record of who owns the tank. Delta Liquid Energy will always have a service agreement on file signed by the current property owner (you, the seller) that will clearly state who owns the equipment. It is important not to automatically assume the propane tank belongs to you if there is no decal. It is possible it was removed accidentally and a new one was never put on the tank.

If you find out, or you already know for certain, that you do own your propane tank then you are ready to include the cost of that equipment into the sale of your home! Again, ensure you are prepared to show proper documentation of your ownership before you include the propane tank in your sale.

What Can Delta Liquid Energy do to help in the process of selling my propane home?

We can be an excellent resource for your real estate agent. By putting our sales team in contact with your agent, you can hand off the propane responsibilities and leave it to the professionals. We will contact the new home buyer (with the permission of all parties involved) and help them get their service started. We want to help avoid any disruption in service for the new buyer AND help you as the seller receive what was agreed upon in the sale of your home.*

There are many aspects of the home buying and selling process – allow Delta Liquid Energy to remove the guess work out of your propane system.

*Please note, we will not be involved in negotiating the cost of fuel, customer owned equipment, and/or whether the buyer is responsible for any propane costs. It is our job as propane professionals to inform all parties of said costs and start or stop service for involved parties once monies due and payable to Delta Liquid Energy have been collected and contracts have been signed.