This is a very uncomfortable situation for all involved. We should all get in the practice of SPRINTING to get signatures on an accepted offer so that this can be avoided. Sometimes immediate signatures are impractical for whatever reason in which case it is good practice for the agents, and most importantly for the sellers, to agree that the verbally accepted offer will be treated as binding and no other offer will be signed by the sellers.
This stinks for you Marinetanker. I'm sorry for your disappointment.
I don't know if you have any recourse, Marinetanker. The Seller's agent's job is to work for the Seller, and if the Seller liked the other offer better, they had no obligation to give you another chance, I'm sorry to say.
None of us understand how one opens a fax, by the way.
Get an attorney working on this asap - your agent should be able to refer someone.
Good luck, hope that helps, check back and let us know how you make out,