Backing out of new construction?

[max_power]

What is the name of your state? Indiana

I signed a purchase agreement with a builder and put down $5000 earnest money. At this point they have just finished framing the house. Now, I have changed my mind about building the house and would like to back out. The only clause I could see in the purchaes agreement about the buyer defaulting reads, "If you default, we may end this agreement and retain all payments made by you under this agreement as liquidated damages, or exercise all other legal or
equitable rights." At this point I am past caring about the earnest money, especially since I have just changed my mind. But what does "all other legal or equitable rights" mean exactly? Isn't that what the earnest money is for, to cover any costs that they will incur? And if they did choose to sue us and the ruing was in the builder's favor, what would they be suing us for (ie would we be forced to purchase the house, or would it be to cover any changes they would need to make to market it as an inventory house)?

 

[Bigfoot]

The only part of the construction process that you see is the framing. There are other processes that must be obtained in advance such as contracts with subcontractors and ordering other materials. The builder can't necessarily cancel these orders without a penalty just because 'you changed your mind' so there's likely other costs that will be borne, that may be passed on to you.

There are any number of remedies that they make seek.