A Hard Lesson on House Buying

Due to work change, I flied to another city over the past weekend to look for house. On Saturday, I send in an offer. On Sunday afternoon, seller talked to my agent and asked to meet me. At the time seller agent was away in another state. So, we all met at seller’s house with seller agent’s substitute. After hours of discussion, seller and I still have $5000 difference. Then seller proposed to let agents to give up some of their commission to make up the difference. The two agents said okay but mentioned that they needed approval from their managers. So, we didn’t sign anything before I left for airport. But before I left, my agent and the owner both told me that on Monday morning we could have it signed. When owner walked me out of the door, he reiterated that even if the seller agent didn’t agree, he would still do it. He also gave me his phone number for future contact and said that he wished to have known me before the house was listed.

On Monday morning, I was told by my agent that her manager has approved the deal, but seller agent still need time to get approval from her manager. And in the evening, I had a pleasant chat with the owner over the phone. He told me in details about how to maintain that house, and even praised how nice Chinese are. He mentioned that there could be another offer, but he ensured me that there would be no problem signing our contract on Tuesday morning because he doesn’t want to mess around anymore. And he also told me the seller agent is actually the owner of that real estate company. On Tuesday morning, I didn’t hear anything. Again, all I heard from my agent was that seller agent was still discussing the deal with my agent’s manager. Then around 5’oclock in the afternoon, I got a call from my agent who said that her manager told her that the owner has accepted and signed another offer.

Apparently seller agent didn’t like the idea of reducing her commission. She is trying to delay the process and at the same time negotiating another deal. I’m wondering is she responsible for notifying the first buyer if there’s a second offer coming in? Did she violate any real estate code of conduct?
Thanks.