Is earnest money refundable on new construction?

Often not. Builder contracts commonly treat the deposit as nonrefundable if the buyer backs out, with refunds only in narrow cases the contract spells out. Builders may also ask for larger deposits than resale sellers, and some contracts let them use the money for construction before closing.

Builders write their own purchase contracts instead of using the standard state forms, so the usual inspection and financing contingencies may be missing or limited. Read the deposit section before you sign. Look for when the money is refundable, where it is held, and whether upgrade or option payments are treated separately.

State law and the contract wording both matter, and calling a deposit "nonrefundable" does not always settle a dispute. A real estate attorney can review a builder contract. See when earnest money is refundable for how contingencies normally work.