Well Jon I guess I am in the minority here. I do not see anything wrong with him asking to be reimbursed for propane he had left in the tank. I never bought a house/farm that had any propane in the tanks that I did not pay for. The fuel was bought by him to heat his house while he lived there. So the simplest thing would have been for him to just call his propane supplier and have the tank pumped out. Instead you got a tank that was pretty full to start out the winter heating season with.
Also in real estate, terms like "as-is: pertain to the house, barns and land. They are real property. The gas in the tank and all his belonging in the house/barns are considered "personal property". So unless the sales contract specifically spells out the propane tank level it would not normally be considered in a real estate contract.
Also think about the one thing you stated in your post: "SOLD BELOW market value". Why would he sell below market value???? Sounds like he is a darn fool then. Houses with usable barns and land sell here before anyone even lists them. So even if he has a 1000 gallon tank and had it clear full you taking 800 gallon. That would be around $900 here. IRC you bought around 50 acres. So your talking about $20 an acre. How much below market did you buy it??? I could make the argument that YOU took advantage of him by buying it under market.
I wonder if he had offers after yours for more money???? Maybe he should have sold it at market value to some one else???
Not trying to start an argument or run anyone down. I would have remembered I got a good buy on a farm I really wanted and wrote him a check for the propane right then.
P.S. On the house you sold. I would pay more than the $10K to get my money out of the people that did not live up to there end of the last deal. People can only do what you let them get away with.
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