My main question is... Can a realtor lose their license because the buyer and seller entered into a verbal agreement?

The back story...
Our original offer on the house was for $5000 cash back to go towards installing a heating/cooling system. Having that in the contract scared away the first two lenders so, at the sugesstion of the selling agent, the sellers would pay an allowable portion of the closing cost and the remaining ($1550) would be paid cash after we closed on the house. This was a verbal agreement between the selling agent, my agent and the sellers prior to be presented to us. We of course were all for it. Whatever would help close the house. That was in early February 2007.

The seller has refused to pay the $1550 now stating that she didn't understand. The sellers agent, who initiated this agreement, has stated that in the event we take this to court she will not remember entering into such an agreement. My agent of course if backing us. However, my agent has just been told that if we take this to court he will lose this license and face a heavy fine. Now he wants to pay the $1550 to make it go away. I refuse to take his money because it isn't his responsibility, and before anyone replys that I should or that I should let it go because it's only $1550 - it's not about the money it's about the principle.

I have emails from the sellers agent that prove she knows full well about the agreement plus the new contract that was changed from the sellers giving us $5000 to paying $3450 of closing costs were done by her. Unfortunately the $1550 cash back remained verbal because the seller agent told us that if we included it in the contract it could muddle stuff up.

Just so you know, this is in Roanoke, Virginia, my realtor is with Coldwell and the selling agent is with GMAC. I really like my agent but he is a retiree that does real estate on the side as a hobby so I think the selling agent knows that she can bully him.

Any advice, referral or helpfull information is greatly appreciated. Thank you,