it depends on how you write your purchase contract

California standard realtor association purchase agreement has a ' LIQUIDATED DAMAGES' item. If you select this item, then your loss is limited to 3%. However, if you don't check this item, seller can sue you for his real loss. It can be more than 3% or less than 3%.

25. LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer’s default, Seller shall
retain, as liquidated damages, the deposit actually paid. If the Property is a dwelling with no more than
four units, one of which Buyer intends to occupy, then the amount retained shall be no more than 3% of
the purchase price. Any excess shall be returned to Buyer. Release of funds will require mutual, Signed
release instructions from both Buyer and Seller, judicial decision or arbitration award. AT TIME OF THE
INCREASED DEPOSIT BUYER AND SELLER SHALL SIGN A SEPARATE LIQUIDATED DAMAGES
PROVISION FOR ANY INCREASED DEPOSIT (C.A.R. FORM RID).