Once there is an accepted offer, it is usually contingent upon the home inspection. I have never been involved with a home being in full contract and the home inspection was done afterwards. Maybe each state is different.
My warning to buyers and sellers would be to make sure the Attorney is a Real Estate Attorney that is familiar with the Township you are purchasing the home in, that you read over the contracts before signing them and to make sure that if there are any contingencies, they are written in the contract.
The Realtor(s) involved with the transaction should have open communication with the Attorneys unless their is a unique circumstance.
Your agent should make sure that any offer you make has an Inspection Period written into the contract terms that allows you to have any and all inspections you deem necessary. The contract should also state what your options are should you find the results of the inspections to be unacceptable.
Hopefully you will have better success with your next offer.
As I read it, technically since this was not in the actual attorney accepted offer and your attorney did not catch it before proceeding forward.. sounds like they had a way out -or- did not agree with your terms of the contingency and the balked. So, really no reason to bad mouth the seller.