Buying or Selling a Home with Propane? What You Need to Know Before Closing

When a home uses propane, there are a few extra details to address before closing. Who pays for the fuel left in the tank? Does the seller need to fill it? Is the tank rented or owned? And if it has a smart monitor, how does the buyer take over?

Here’s what buyers and sellers should know.

Sellers: use your propane normally, then top up before closing

Continue using your propane as you normally would and arrange deliveries as needed until you move. Shortly before closing, have your supplier top up the tank to its normal maximum level.

The buyer will reimburse you for the propane left in the tank through the closing adjustments, unless the parties have agreed otherwise, so you don’t need to try to use it up before moving.

Book the final delivery ahead of time so the fill and paperwork can be coordinated with your lawyer.

A full propane tank is normally 80% full

Propane tanks are typically filled to 80% of their capacity, leaving room for the propane to expand as temperatures change. That is considered a full tank.

Your supplier determines the appropriate fill level. You can read more in Superior Propane’s explanation of propane tank safety and the 80% fill level.

The buyer pays for all the propane remaining in the tank

The closing adjustment includes all of the propane left in the tank, not just the amount added during the final delivery.

For example, if the tank contains 800 litres after the final fill, including 200 litres that were already there, the adjustment is based on the value of the 800 litres.

The seller receives a credit on the statement of adjustments, and the buyer pays that amount as part of the funds required to close. Any significant consumption between the final fill and closing should be brought to the lawyers’ attention so the adjustment reflects the fuel being left for the buyer.

Is the tank rented or owned?

Many residential propane tanks are rented from the supplier. The rental arrangement is separate from the propane inside the tank, and both need to be addressed.

If the buyer is assuming the rental, coordinate the account transfer with the supplier before closing. Rental charges may also require an adjustment. For example, if the seller has prepaid rent covering a period after closing, the buyer’s share may be credited back to the seller.

The supplier may handle that allocation directly. Let your lawyer know so the same charge is not accounted for twice.

If the seller owns the tank and it is included in the sale, it transfers to the buyer as part of the purchase. The propane inside is still dealt with separately through the fuel adjustment.

What sellers need to provide to their lawyer

• The size of each propane tank.
• Whether each tank is rented or owned.
• The last delivery invoice.
• Photos of each tank’s gauge after filling, or smart tank screenshots showing the fuel levels.

For smart tank screenshots, make sure the latest reading’s date and time are visible. If there are multiple tanks, include a reading for each one.

Buyers: photograph the gauge at your final walkthrough

During your final walkthrough, take a clear photograph of each propane tank’s fill gauge and send it to your lawyer before closing.

This provides a record of the indicated level so it can be compared with the seller’s information and the proposed closing adjustment.

Remember that approximately 80% generally means full. A gauge gives an approximate reading, and some fuel may have been used since the final delivery.

If the level appears significantly lower than expected, tell your lawyer right away so the discrepancy can be addressed before closing.

Smart monitors: arrange the account and connection handover

Not every smart tank uses the home’s Wi-Fi. Some use cellular or satellite connectivity. For example, Superior Propane’s SMART Tank system uses cellular or satellite service.

The seller should contact the supplier before closing to arrange the monitoring account handover and provide the buyer with the app name, device identification and any setup instructions or pairing codes.

If the monitor uses home Wi-Fi, the buyer will need to connect it to their own network. Confirm with the supplier how to do this and whether technical assistance is required.

Arrange the account handover through the supplier rather than sharing personal account passwords. After taking possession, the buyer should confirm that current readings and notifications are working, particularly if monitoring is used to arrange automatic deliveries.

We’ll help you handle the details

At Rabideau Law, we handle purchases and sales every day. Our team will explain your closing adjustments, let you know what information we need, and keep you informed throughout the process.

If you’re buying or selling a home with propane, let us know early so we can help coordinate the details before closing.

Contact Rabideau Law today and let’s get your move underway.