Fuel proration in New Hampshire real estate transactions ensures the seller is reimbursed by the buyer for any heating oil or propane remaining in the tank at the time of closing. This is a common practice because fuel oil and propane in the tanks are generally considered personal property. When a property closes and there is still fuel in an LP tank or fuel oil tank any fuel remaining in the tank on the day of closing is considered personal property of the seller, even though the tank itself may stay with the home. Outdoor propane tanks are often the property of the fuel supplier. 

How is this fuel proration calculated? To do a fuel proration in real estate, the seller or the seller's agent documents the fuel level (often propane/oil) via gauge photo. Next, get the current fill rate/cost from the supplier, then calculate the remaining fuel's monetary value and credit the seller at closing; the buyer pays the seller directly for this amount as outlined in the purchase agreement, ensuring fair cost-splitting for the fuel remaining in the tank at closing.

What if the tank gauge is not working or is broken? If a fuel tank gauge isn't working for a real estate proration, you must manually check the fuel level with a dipstick.

When you're considering purchasing a property with a fuel oil tank (often located in the basement) or with an LP tank (often located above ground outside and in some cases LP tanks may be buried underground), you'll want to make sure to understand the prorations section in the offer you make, or the offer you receive as a seller.

When creating an offer to a seller with a fuel proration in a multiple offer scenario , the fuel proration will be a significant attribute to a buyer's offer. If another buyer does not offer to reimburse the seller for existing fuel or LP gas, this would weaken a buyer's offer.

When it comes to public or municipal natural gas and electric services, prorations are not normally conducted. Instead, both the buyer and seller would call and request a transfer of service. This allows the seller to get one final bill and allows the buyer to start at a $0 balance due when they close. This may also apply when municipal water and sewer services are involved.