Is this a scam?

[Jason Chen]

I recently made a full offer on a short sale. After the contract was submitted, my agent told me that he was informed by the listing agent that the owner recently sold an "option to buy" on this property to another investor for $9700 in premium. And this investor would not release the option unless the full premium is refunded. The seller wants the buyer (me) to pay up this investor. This sounds very shady to me because it appears to be a plot to siphon money between the bank and the buyer. Can this be legal? I am sure that the bank does not know the existence of this option. How can I verify if the option is legitimate and exercisable? It is not recorded with the county that I could find. TIA.