Best of luck,
CalBRE Lic# 01352758
Unless there was a seller contingency (like a requirement where the seller needed to find a replacement property within a time period or he/she could cancel), then there are not many ways for the seller to cancel. If you weren't removing contingencies and acting within the agreed upon time frames, the seller's agent could give you a notice to perform and remove contingencies. If you still failed to remove the contingencies, then the seller could cancel. That being said, cancellation of a contract requires mutual agreement and can sometimes get messy.
The only other scenario I've seen happen with other listing agents and their clients is that their seller is not performing. In other words, the seller agreed to fix certain thing by a certain date, deliver certain disclosures, etc., but was not doing those things. This causes the buyer to give the seller a notice to perform those things and if not done, the buyer can cancel. In essence, the act of the seller not performing pushed the buyer out of the contract.
Lastly, it can be hard to tell if the agent lied or the seller lied to the agent. Some sellers tell half truths or lies and the agent has no way of recognizing the lie. Thereafter, the agent delivers that info to the buyer.
Everything happens for a reason. Try to realize that even though it stinks that you didn't get the house that you wanted, it probably happened because a better priced, perfect home is out there waiting for you to find it! I really wish you the best of luck.
In this Country you can sue anybody for anything, but that does not mean it will be worth the effort. If you think you have been wronged and should get your day in court consult with an attorney. Lawsuits are time consuming, though. In general, the only parties that make out in a lawsuit are the attorneys. If you are looking to buy a home, move on, and concentrate on finding another one.
In California, while the seller's agent does not owe the buyer any fiduciary duty because they are not in a fiduciary relationship, the agent nonetheless has a duty to act in good faith and must not lie on behalf of the seller to get him out the contract. Whether or not what the agent did would give rise to any liability would depend on the facts and circumstances of the case.
We would need to know the factual scenario to figure out if the agent can be sued or the suit will be successful.
Was there really a contract ? Had everyone agreed on a price and signed the offer to purchase? That is when you actually have a contract, as long as it is not a short sale in which case you also need the banks signature too. If there was a contract and the seller wants out, you need to discuss it with a lawyer. They can't do that - IF- there was a contract. Now, if there is an offer floating back and forth, the seller can back out and not sell, and he or his agent, can tell you that and be held harmless.