If the owner of the home asks to cancel the listing agreement the listing agent MUST cancel the listing, however the owner could be liable to pay the commission if they relist with someone else or otherwise default on the listing agreement. For specific questions related to your contract you should contact a real estate attorney.
The law requires the money to be deposited by close of the second business day after execution by the seller and the buyer. A breach may have occurred if the money was not deposited in a timely fashion.
The seller should discuss the matter first with the listing Realtor, then with the broker of the listing Realtor. If this fails, then the seller should discuss the matter with an attorney.
As Kathy mentioned, if the buyer signed but the seller has not signed, then no contract exists. Or if seller makes changes that buyer has not signed off on, then the seller may withdraw his counter-offer up until the time the seller is notified of acceptance of the seller's terms.
A commission is due according to the listing agreement when a qualified buyer is brought under contract. No commission is generally due if no contract exists or the offer or counter-offer was withdrawn before acceptance by both parties, but since we don't know the details of what happened, it is not clear whether you even have a contract or not.
Generally, an attorney can clarify the rights of the parties and give the seller advice, and this is the recommended course of action if the broker cannot straighten it out to the seller's satisfaction.
I am very sorry to hear about the issues you are having. Perhaps there is a breakdown in the communication somewhere. I applaud your attempt to resolve this conflict by speaking with the broker first. The following info may help...
You are entitled any information that your listing agent and broker collects from you or other potential buyers. In fact, it is a requirement that the agent fully disclose all pertinent information to you.
As far as the listing agreement goes, you have little recourse unless you can prove that the contract was breached. Most good natured agents would sympathize and let you out of your contract with no fault, but that is a courtesy, not a requirement. After all you did sign a contract. Consider your position if the roles were reversed.
To clarify, an exclusive right to sell agreement (likely what you signed) states that the listing broker and the agent will receive a commission no matter who brings the buyer. There are also other efforts involved in promoting your home such as listing on the MLS, advertising fees, office expenses and so on.
Earnest money is something provided by a homebuyer to secure the contract of sale. The contract is only secure if YOU accept the contract. In most cases, unless it is a FULL PRICE offer, you can reject the offer and not be responsible for the commission. Most listing agreements stipulate that an agent's commission is earned when they produce a buyer who makes a full price offer whether or not you accept, or any other offer that you do accept. If it is not full asking price, you can likely reject it and be safe.
Here is your best course of action....
1. Speak with the listing broker as you mentioned (this may solve the problem).
2. If not, contact the Texas Real Estate Commission with your concern.
You are entitled to file a complaint with TREC, but make sure and carefully read the contract before doing so. If you are the one in breach, then you will be responsible for performance of the contract.
You could also just wait until the listing expires, then fire your agent. I am not a legal expert and this is not legal advice. It is merely an opinion based on my knowledge and observations. Good luck.
If you are having problems communicating with your agent CALL THE BROKER.