By law in Massachusetts, real estate agents and brokers are not allowed to "interpret" the law; be sure to discuss this with your real estate Attorney immediately to receive legal counsel for all contractual terms, obligations and contingencies - especially for how breach of contract will be handled. If you are not currently working with a real estate attorney - retain one immediately.
Possibly. Tell your agent right away and discuss financial and legal ramifications that may exist. In some states, a verbal agreement is binding. In others, the written contract executes the deal and transforms the offer to a purchase contract when all parties sign.
Good luck to you.
What is your agent advising--If you did not sign a contract and exchanged no deposit money, ask your agent to cancel--if you do have an executed contract--signed by all parties and deposit money was exchanged, consider consulting with an attorney who specializes in real estate and see exactly what options you may have.