The realtor is lying to you.  The buyer can walk away after your contract has expired. We have a real estate lawyer we are using and she is very inexpensive. You can message me if you want her number
I am sorry you are dealing with this
We have had a nightmare with buying a home here..sorry but you can't trust the real estate agent, the loan officers either. I have bought 2 home in the past in the usa and never dealt with what we are going through here.  If I knew it was going to be this bad I wouldn't have even gave money for escrow , I would have walked away. We have a clause that our lawyer put in that we let escrow back if the house does appraisal for the buyers asking price or if there is issues with crim etc that we get our escrow back. So hopefully you are protected as well.
We are getting an appraisal done on Wednesday and if it does appraise correctly I will be more then happy to walk away and get our escrow back.  We will end up losing the money we had to pay for appraisal, flood evaluation, the plot and survey, crim stuff etc
It's really disgusting the stuff they get away with here.