What did the agent say to persuade you to back out of the contract?
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.
E: Gregory@GregoryMasi.com... more