The deposit is the first thing exposed. If the appraisal comes in low or underwriting turns up a problem after the condition is gone, the buyer is still bound to close, and walking away means forfeiting that money rather than simply losing a house.
The second exposure is bigger and less understood. A seller whose deal collapses can relist and, if the property sells for less, pursue the shortfall from the buyer as damages, and that claim proceeds through the Court of King's Bench, not a quick negotiation.
There are ways to look strong to a seller without taking on that exposure, from a shorter condition period to a larger deposit, and Joel structures offers that way rather than removing the protection outright. Get your hand-reviewed valuation from Joel Dyck.