[twas]

I signed a contract to buy and put up 1000.00 earnest money . I know my cash is gone , but the contractor built a garage because it was stated that we asked for it in the contract which we did , but it has taken a lot longer than expected and the times seem to be getting tougher ,so can we breach this contract and if so what can happen.

[smearcase]

What can happen is he can make you pay for all his time, material, profit, expenses and legal expenses if it comes to that--if the circumstances are as they sound in your write-up.
If you had a completion date and he far exceeded it and can't give an acceptable explanation for delay (usually they can-its very lenient in contract law) you might have some room to negotiate. A written change to the contract should have been prepared if you didn't want the garage and that could have had impact on the remainder of the contract also. I am not a lawyer but I have experience with construction contract claims and that's where you are headed unless there is more I don't know, such as all the contract language. You need to have plenty of documentation to substantiate your side of the issue.

[Fr_Chuck]

And I will ask, is the house not able to move in, even if the garage is not finished, Could perhaps a closing be arranged with a set amount of money put into escrow to pay for the garage after it is fininshed.