Help what exactly is Prohibition and Risk of Loss of contract?

[L Smithers]

RISK OF LOSS:If subject property is damaged prior to transfer of title (any, Buyer has the option of accepting any insurance proceeds with title to the property in "as is" condition, or of canceling this contract and accepting the return of the deposit. This contract is subject to lending partner's approval. If no clear title is obtained by Title Company or attorney within 30 days, buyer will be entitled to receive a full refund of his EMD funds, and will no longer be bound by the contract."

PROHIBITION: This agreement establishes a prohibition against transfer, conveyance or encumbrance to the property.