I found out from a friend that he was buying a home in my neighborhood. I asked him if he was aware that this is a flood zone and that due t...

Question

I found out from a friend that he was buying a home in my neighborhood. I asked him if he was aware that this is a flood zone and that due to the new law congress passed all of the flood payments will rise to 4 times or more than what he thought he would have to pay. the realtor told him that it was a flood zone, but nothing about the increases. When he called her back to inquire about this. She told him that he had already put a thousand into escrow and was due next month to close on the house. She said that if he did not, then the homeowner would get an attorney and sue him. Is this correct? Can he get his deposit back?

Answer

If he signed a contract he is stuck with his agreement. He cannot get out of it due to his own ignorance. I would suggest he consult with an attorney with all his paperwork.