Hope that helps,
A) Lenders generally require heat, but appraisers rarely test it.
B) An oil spill, as noted earlier, is a major problem, with great risk, as environmental clean-up is expensive, and needs to be done quickly. It's your money, and maybe it's the best house ever, but I'd look to my attorney to walk, since the bank is unlikely to resolve this issues satisfactorily.
Matt Heisler is a real-estate professional and owner of Heisler & Mattson Properties. He has been selling residential real-estate for over 10 years. He has given several talks on real estate, including presentations on first-time buyer tips & tricks, and profiting in real estate investing in Massachusetts. As a Vanderbilt University alumnus, he is proud to serve the communities of Natick, Framingham, Medfield, Millis, Holliston, Hopkinton, Southborough, Westborough, Northborough, Grafton, Marlborough, Shrewsbury, Worcester, Milford, Charlton, Northbridge, Sutton, Hudson, Sudbury, Clinton, Boylston, and West Boylston. His company website can be found at http://www.bjheisler.com, and his Metrowest Blog can be read at http://HomeSellingInMass.net.
*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.
A renovation loan may help bypass the heating system but the oil could be more problematic.