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This could make the contract voidable by the purchaser. Seek legal advice as it may be possible to win, and then pull out later if need be,

If the probate has been granted and the executor is still around then often the title isn't transfer to the executor first but kept in the dead dudes name and then at settlement a simultaneous settlement is done. I did this recently for a client - using a property lawyer for the conveyancing...

I think it would be rare for an agent to read the contract. Buyers don't even read it!

Stat dec is meaningless and no solution. How is the deceased going to sign a transfer form - ask that to their conveyancer. I don't think there are any easy solutions to this one.

Yes you should have concerns and seek legal advice. Who is going to sign the transfer? Sounds like probate was never applied for or the exector neglected to transfer title. When was the death? And I bet they are using a covneyancer?