What is the financial treatment of fuel oil left in the tank at the time of closing?

In real estate transactions, the treatment of fuel oil left in the tank at the time of closing generally reflects the principle of ensuring that the buyer is receiving an asset that they will need to refill or maintain after the purchase. Fuel oil in the tank is considered a personal property item that provides value to the buyer technically at the point of closing.

When the transaction closes, if there is fuel oil in the tank, it is common practice to give a credit to the seller. This means that the seller is recognized for the value of the fuel oil they are leaving in the tank for the buyer. This credit adjusts the financial settlement between both parties, accounting for the value of an asset that the buyer will benefit from. By treating this fuel as an asset, the seller essentially receives compensation that reflects the fact that they are providing this resource, while the buyer acknowledges its presence and value.

In this manner, the financial treatment aligns with the expectations in a real estate transaction, ensuring the buyer is fairly compensated for the fuel oil they will utilize going forward.