for what it's worth, our rates are still a great deal. Even in the 50's my parents were paying 6%. and in the 70s I was paying 9.
Decide what YOU want and then go for that solution. ie do you still want this house or do you want damages and move on?
Do you have a buyer's agent or are you just dealing with the builder's agent? What are they telling you?
In their case, they really had no repercussions unless they couldn't qualify for the loan (which they could) or if the builder took more than 2 years to deliver the home. The contract was very one sided. While they knew how the contract read and understood the risks when they signed it, I know they didn't think it would actually be 6 months late. Despite the many frustrations, there wasn't a time they didn't want to move forward with the purchase. The builder would have likely let them out of the contract if they had wanted out. Regardless of the problems they are VERY happy homeowners despite the delay and despite the interest rate increase.
I don't know if there are local laws that can help you, but the answer to your question is very likely in your contract. First, read your contract. Then contact an attorney.
I wish you all the luck in the world.
My builder of a new construction ignored important filing requirements with the city even long after i pointed them out - hoping I get scared of the increasing rates and get out of contract due to delays. They even asked me to get out a few times. After almost two years of being in contract the builder says they have the CO now and want me to pay up more for additional expenses they incurred due to city building regulations changes.
In November 2013 the builders attorney signed an addendum to the contract which would reduce the price of the house for each day of delay after the end of 2013. I thought of not pressing for it since I think the builder is also losing out money by waiting. Now as the prices are going up the seller's agent is saying that the seller/builder will walk out of closing if they don't get more money for their construction expenses (not agreed to before) at closing. Anyone knows a good attorney who dealt a similar case?