Articles & Resources
Buying a Gas Station?
If you are buying a gas station, whether it is your first time or third time, it is always recommended that you request certain documents as part of your due diligence. It will give you a better idea of the condition the gas station is in, and whether it has complied with regulatory standards. We recommend that you do this document review before you enter into an agreement to buy a gas station, as it will end up saving you time and money. If there are issues that you spot in the documents, they can be addressed in the Agreement.
- Copy of Ontario Licence to Operate a Retail Outlet – this is the main licence to operate a gas station. There is an Engineering Review and Inspection done by the Technical Standards & Safety Authority (TSSA) before granting of the Licence, which can take up to 30 business days, or 5-10 business days for rush service.
- Copy of Inspection Reports for TSSA – this document shows when the last inspections were conducted by TSSA and if there were outstanding items to be rectified.
- Copy of all Maintenance Records – this document shows the maintenance records of the equipment
- Copy of Corrosion Protection Records – this document is only required if the underground tanks/lines are made of steel
- Precision Leak Test of Underground Equipment – this is to ensure there are no leaks in the underground equipment.
- Copy of Environmental Assessment of Site from Seller – There are two Phases to this Assessment:
- Phase I Environmental Site Assessments – this determines the need for further site investigation, i.e., the need for any type of intrusive sampling and analysis or may indicate that further investigation is not warranted.
- Phase II Environmental Site Assessments this determines of the need for a remedial work plan and may also allow the determination of whether conditions or events at the site are causing or likely to cause adverse effects and will require notification to the appropriate regulatory authority.
As a final note, all Underground Storage Tanks (UST) must be registered with the TSSA, so it is best to check with the TSSA to see if all the tanks on the property you are buying are registered with TSSA.