Therefore, I wonder if an earnest money deposit of $50k is normal for a newly built single family house? 

Normally, I would agree with you on that statement. 

It is normal to get cold feet but the main thing is to do the best due diligence you can do prior to going under contract-  "Pre-DD". 

I think it depends on the market.. they approached me on a furnished rental I had in Vegas (Summerlin gated community A class)  We got basically double or a little more of the normal rent..

This needs to be highlighted in the lease and acknowledged by them.Security Deposits: You can’t use their security deposit for routine cleaning, but if they leave things in bad shape beyond normal wear and tear, it’s fair game to deduct cleaning costs.I’d start by having a straightforward talk with them about the importance of keeping things clean for health reasons and property preservation.

If you have a real estate attorney you use regularly, they normally will do it for a low price as well.

It will not cover foundation issues Thankfully, no EMD was used in this during this deal.If its unlike for them to sue, how does situations like this normally play out if Buyer doesnt want to terminate?

if the timber is merch  you should get a mill in there to bid on the timber.. hire a logger.. profit you use to knock the stumps out.your civil engineer should be giving you a preliminary cost to do infrastructure normally they will do these for free since they will be designing it all.. they would be the best bet anyone on line is simply  a WAG  

I went through the initial 2 months having to fix even the most minor of issues that other tenants would normally be very adjusting.

I understand the inspection would affect the value of the policy but I don't see why it stops me from getting the policy.Is this normal?