Can my realtor hold up our house listing ($1,465,000) by Releasing it conditionally, which is keeping us from hiring another realtor.

You are best served sending a writing to the realtor advising them to cease all sales and marketing on the property and that if the conditonal lease does not close within 30 days, they are terminated. What you want to avoid is a situation in which they can claim they earned their fee and you did not get the tenant. Did you specifically authorize the realtor to lease the property? Did the realtor advise you of their intention to list the property for rent? Were their conditions on the rental (do you have the right to approve or deny any tenant? can you do so unilaterally?)? If you feel the realtor's actions are eggregious, you can report them to the state but unless the claim is backed by hard facts, the state will do very little. It is hard to advise you without seeing your listing agreement. Also, are you working with the broker or an agent. One day you might just sell your house and telling the broker that they have lost you as a client is not something they like to hear. If all else fails, you can have counsel send a letter but this is not a fact situation that will do much other than cost you a lot of money.   Good luck!