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Yes. Whoever sold the house has no legal right to do so. The contract is probably conditional on them obtaining probate, but there is a chance it won't happen will could be invalid or there could be others who are appointed executors.

Most parties to a property transaction never meet each other. You would just add standard clauses to every contract you enter, whether as buyer or seller.

This is no laughing matter:) Even young people can die and this must be considered before every contract that you enter. It would even be troublesome to get your 10% deposit back if it doesn't settle because of death.

You should have had a special condition in the contract. If she dies contracts she has entered into a still valid with her estate being bound to the terms. Sometimes contracts of sale have clauses allowing either party to terminate on the death of one of the parties. So you may no longer have...