real estate, accepting an offer than rejecting it to sell higher

I live in Massachusetts. I'm trying to buy a house. I made a full priced offer on a property and the seller accepted my offer. We didn't sign a p&s but the seller faxed a letter of acceptance to my realtor. I had an inspection done on the property and the house needed A LOT of work. I wanted to negotiate the price a bit. I didn't rescind or amend my offer, but my realtor asked the sellers realtor if we could negotiate, she said no and then relisted the property for $25k more than it was listed for. My realtor almost blew a gasket. He said that her refusal to talk to her client is an ethical violation and that relisting a property that has an accepted offer is also an ethical violation and possibly a legal violation. When my realtor told her she was in violation, she had him send another offer. The offer was for the asking price plus an additional $10k to be returned at closing. We structured the offer this way so we could get cash back to do the necessary work and so I wouldn't have to jump through hoops with a 203k loan. My realtor and my mortgage broker think that she may have her own buyer...I obviously can't prove that but something is fishy.
My question is this, did the realtor break the law when she relisted the house after her seller accepted my offer and do I have ANY legal recourse with either the realtor or the seller?
Thanks!

[I wanted to negotiate the price a bit. I]


Well then you had not accepted it would seem? And the deal would not then be binding??

[Ashima Puri]

The Seller faxed a letter of acceptance to your realtor. Once the acceptance is communicated your offer has been converted into a contract. Now, your question is that whether the realtor break the law when she relisted the house after her seller accepted your offer and do you have ANY legal recourse with either the realtor or the seller?
The first limb of your question is whether the realtor break the law when she relisted the house after her seller accepted your offer?
Now, the answer to this issue is yes and the seller can be sued for not performing the contract.
In both the cases the realtor cannot take a plea that because the seller accepted the offer he is not bound by the contract. As, in the present case the realtor is acting as an agent of the seller and as in the Agency the principal is bound by the acts of the agent, here its the principal i.e. the seller who has accepted the offer.
The second limb of your question is whether you have ANY legal recourse with either the realtor or the seller? The answer is that because the seller accepted your offer therefore, the seller can be sued and the realtor can be made a party in the suit.