Should the reality company listing a property disclose it is in a flood plane "A" at some point?

Asked by Chris Blocker, Rochester, IN Tue Jun 21, 2011

We are almost to closing, the appraisal comes back requiring flood insurance. Big surpise, not sure we would have pursued this property if we would have known.

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Amanda & Dan…, Agent, Syracuse, IN
Tue Mar 31, 2015
Check the sellers disclosure to see if the owner marked that they had knowledge of the flood plain or if they pay flood insurance. (pg 2, right column if using IAR forms)
In Indiana, flood insurance maps are changing. If you , your agent, nor the seller believes that the property is in a flood plain, have a elevation survey completed. Once the flood plain has been established, you can complete a letter of map amendment (LOMA) with FEMA to remove the property from the flood plain map if you are above the 100 year flood plain. This is quite common in Kosciusko, Marshall & Fulton counties. (noted that you are in Rochester, IN ) It is always best to disclose flood plain issues up front as there may be ways to work around the issue with different lenders requirements. Some lenders require if any portion of the lot to be in a flood plain to require flood insurance. on a lake house, this is nearly impossible as the water touches to the lot somewhere in the flood plain. Other lenders measure from the elevation of the first livable floor or a structure.
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Shannon Thom…, Agent, Avon, IN
Wed Jun 22, 2011
The box on your contract if marked that you can walk away if found to be in a flood plain you can get out of the contract. Also if its found that the seller didn't disclose and new about it could get a little rough on them if you pursued. The flood areas are changing though for sure.
There is a flood plain map below for Indiana.
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Linda S. Cef…, Agent, Franklin, WI
Tue Jun 21, 2011

It is possible that the current owner was not aware. Many of the flood map boundaries are changing due to weather changes. It would be important to know if the current owner was paying flood insurance and as Marita already said, to disclose it.
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Marita Topmi…, Agent, Indianapolis, IN
Tue Jun 21, 2011
Hi Chris,

First, let me congratulate you on your new home.

Second, in Indiana the seller discloses whether or not he pays flood
insurance and/or the home is located in a flood hazard area. It should
have been check marked on the second page of the disclosure form.
Your agent should have marked the box on your offer giving you the
opportunity to walk away from the purchase if the home is found to
be in a flood zone. Presumably, you are going to closing with the required
flood insurance instead.

I'm sorry to hear you found out so late in the process. And I wish you
a wonderful life in your new home.

Thanks for sharing your story.

Marita Topmiller
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