EARNST MONEY

My son and g/f were buying a house and had a real estate agent. $1000 was put down in earnest money. They were told they had 20 days to submit their offer and what they would like fixed. The appraisal came in BUT his agent told him-that they would wait until the inspection came back and then they would submit "the appraisal and what they wanted fixed". Instead of the 20 days it ended up 27 days. The sellers don"t want to fix anything and have said that my son is in breach of contract and they are keeping the earnest money!! Isn't this on his real estate agents shoulders to get the money back or take it out of her pocket--since she is the professional and held things up!! Also, the bank kept holding up the appraisal--are they responsible too!! The sellers at the beginning said they would be out in two days after the closing BUT now said they had to stay in a hotel and that is part of why they are keeping the money! PLEASE NEED INPUT ASAP!!