People are greedy, and as you said, unethical, douchebags. Keep pressing them, what they're doing isn't right. I'm not sure about the legalities of it, but there has to be something you can do.

Wow that's bullshit. That can't be legal, at least I know it isn't in Australia where I'm from - my hubby has his relators licence and he's 99% sure it's not legal in the states either.

Hope it gets sorted.

I'm pretty sure the seller is legally bound to stick to your offer once the signed contract has been exchanged. If not, then your state has some pretty funky laws concerning contracts and real estate. Calling your lawyer was a good idea. You may ask the state realtors association and whatever state agency oversees licensing to look into the seller's real estate agent as well.

Isn't that what a contract MEANS? Sheesh. Go get 'em, girl!

If you've already put a down payment on the place they are contracted to sell to you. If they back out they are responsible for ALL your costs plus you have the right to take them to civil court.
It was tried once with me, by the time i was done with the bill, the higher offer would have lost him money! Of course i had already done some work to the place and my o my did I pad that bill!

^^^^ Just let them know that if they renege on the contract, they're going to lose a lot more than 5K.

Go get em. There's penalties for that crap.