Mislead into selling our home

[Kara Daugherty]

We recently put an offer in on a short sale property.  We never intended to list our current home until we were under contract on another home.  Our realtor emailed us that "the bank agreed to everything" and asked when we would like to list our home.  Us not being real estate experts took his word and assumed the signed contract we received was bank approved not just seller approved.  We listed our home and accepted an offer.  Hours later our realtor informs us the bank wants 125K more on the short sale property and proceeded to tell us it was always subject to bank approval.  First of all it had been two months so why wasn't he following up?  Second but most importantly can he be held liable for misleading us in the first place.  We would have never listed our home had we known it was not bank approved.  What code of ethics has he violated?