OK, I’m in Michigan and I know that you are not my Lawyer. That said, here’s my situation; I made an offer on home and asked the homeowner if it was in a floodplane. Thier respose to me was that they were not required to have flood insurance; OK so I went forward with the deal and wrote a $1000 earnest money check to the broker. I had the home inspected and started loan proceedings and was told that flood insurance was required because they were in a FEMA flood plane. I went to the city offices and found out that the seller not only knew he was in a flood plane; but had actually had a surveyor come out and determine that yes they were in a flood plane. Turns out that FEMA reassessed the property as being in a flood plane in 2006 but did not require the present property owners to obtain flood insurance.
Needless to say I am peeved at the seller for not answering my question honestly and have written documentation showing that they knew that they were in a flood plane; regardless of wheter or not they were paying flood insurance. Since I don’t trust this guy to return the check (he already lied to me) could I just stop payment on the earnest money check that I put down and tell him to take me to court over it? Would I be breaking any laws by doing so?