All the facts and circumstances have to be considered in light of the case law in your state regarding the issue of agency, liability, errors and omissions.  Certain states have enacted disclosure laws regarding real estate agents and the obligations that they have to both the buyer and the seller.  Many states have laws that indicate that they are the agent of the seller only and so what their obligation to you under the set or facts you stated may not be as you would like.  Seek legal counsel from an attorney in your area.  It is unclear what you would consider your damages to be as recoverable in this situation, especially if the other house is already sold and you have closed on this one.  Good luck.