The deposit sits in a brokerage or lawyer's trust account for the whole transaction specifically so neither side can release it without the other's written agreement or a court order, which is why the condition deadlines in the contract matter more than a verbal understanding between the parties.
Backing out after the contract firms up, with every condition removed, is a different situation entirely. The seller can pursue the buyer through Saskatchewan's Court of King's Bench for damages, potentially including the deposit and more, and a lawyer's review at that point, generally $800 to $1,500 in fees, is essential.
The safest way to protect a deposit is never letting a condition lapse before you are genuinely satisfied with financing and the inspection. Get your hand-reviewed valuation from Joel Dyck.