seller did not disclose flood plain info

we live in Michigan..purchased a spec home from local builder who
indicated we are not in flood plain and do not require federal flood
insurance. Builder said his initial survey put house 1 foot above flood level. Now 2 days before closing we find that a second survey put house 1 foot below flood plain and we will require federal flood insurance. We have spent 15,000 finishing basement with builder and have paid most up front. Do we have recourse after the closing?

[HomeGuru]

Yes.

Homeguru's advice is accurate but not good -
your best course of action is to address this issue prior to closing - Your ability to obtain funds from a developer after you close will be a lot more challenging. SPEAK WITH AN ATTORNEY

If possible have the closing delayed until this matter is addressed. If you need to close, you can have your attorney request a 'hold back' of a specified amount of $$ which could be put into an escrow account. If I were you, I'd try to have 15k held back from the seller until this matter is rectified. Once the seller has your $$, your chances of recovering any back from them are slim. You would need to file suit and if you won, you would then need to collect the $$ - If the funds are in an escrow account the developer will be more motivated to settle this matter.