What happens to my deposit if I back out of a home purchase in BC?

This answer covers the law of British Columbia.

Backing out of a home purchase after subjects are removed puts your deposit at real risk, and whether you lose it, and whether the seller can claim more, depends on your contract and the facts. You should not assume the deposit is simply returned, and you should not assume the seller is limited to keeping it.

Your deposit is usually made with the offer or after the offer is accepted and is usually held in the brokerage trust account, with the brokerage holding it as stakeholder. Licensees must pay money they receive into a trust account. If the seller keeps the deposit, a buyer can ask a court to relieve against forfeiture, because the court may relieve against all penalties and forfeitures on terms it thinks fit. Whether a court would do so in your case depends on the facts. A land contract generally must be in signed writing to be enforceable, with alternatives such as part performance or reasonable reliance.

Before you tell anyone you are backing out, have a lawyer read your contract of purchase and sale and explain what it says about the deposit and about any further claim the seller could make.