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I'm not sure it is such a bad system
You could make an offer on a house that gets accepted then you can organise a survey, if that survey reveals something that you're not happy with then you can pull out
There has to be a point at which contracts become binding, ie exchange, and until then then yes, the chain can fall apart
Otherwise it would have to be a system where there would have to be some many things that the contract would be subject to, surveys just being one, that people would still find a way to pull out if they change their mind.
Totally shit for anyone it happens to, the last house I sold (in 2001) was bought by a complete pair of numpties who messed me around no end.
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