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My husband and I were in the same situation. The seller tried to do the same to us, but could not. Our closing is still pending(We have a great lawyer!!!) Unless you have defaulted on any of the terms of your agreement then your contract should be binding. I do not know what state you are from, but you should get in touch with a Real Estate Lawyer ASAP.
Also read the sections on this website's home page dealing with buying/selling a home under Real Estate for some general rules and information about your rights.
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