To clarify, the events played out as follows:
1. We had submitted an offer on a foreclosure and got a counter offer well before 24 hours passed.
2. Upon reading the counter offer, we noted the original contract was not written as we directed (and we failed to catch it before signing--big mistake, but not what I'm here to discuss) so we withdrew our offer and submitted a new offer the next morning, which was Friday (written as we originally intended but with a larger--actually quite large--earnest deposit to show we weren't just messing around).
3. We had the sense that this angered the listing agent because she stopped returning calls and did not even acknowledge the offer until the following Wednesday.
4. Within an hour of acknowledging the offer, she sends an email informing us there were other offers and that we needed to submit our best offer.
5. 45 minutes after issuing the request for our best offer, our agent gets a fax from the listing agent stating that they accepted the other party's offer (our agent hadn't even had a chance to see the best offer request yet).
We suspect the other party was either given more time to submit a best offer, or that as soon as they upped their offer the listing agent knocked us out of the deal without giving us a reasonable time to respond.
Basically our agent suspects two forms of misconduct. Firstly, failing to submit our offer in a timely manner, and secondly, failing to treat all offers fairly.
But I don't see how we could document these events since it seems it that the listing agent is the only one with access to any documents we'd need to prove our case. Even if we asked for proof that our offer was submitted in a timely manner (or at all) couldn't she easily manufacture these? We do have documentation that there was only a 45 minute lapse between the best offer request and the notification that the home was under contract with the other party.
Many thanks for your input.