I've also used same method as worldwiser in the past. It's only madness if you suspect you're going to get ripped-off by the seller or you know there's a chance you won't be able to actually complete the purchase (in which case, take a 'normal' house purchase transaction where you're at liberty to dick as many sellers around as you like with no certainty for yourself either). People complain about the way it's done in UK, but then are unable to recognise practical measures designed to overcome the problem areas. Sellers are not counsellors, come to the table with the dough and in return you get first option on some land/a house. For me, if someone's that keen and has their shop in order to purchase they'll put the dough down. It's an option, not an obligation, for that particular property.