This is not legal advice, only an opinion.
This is best dealt with through the obligations of the contract. You have contingencies, but you are trying to get out of the contract due to something that was most likely not a contingency in the contract. You say you have 17 days, I am going to make an assumption here that is for; seller disclosures, inspections and financing. If the seller had provided disclosures and inspections prior to your offer then it would be difficult to use any known issues as part of the seller disclosures or inspections. If you used the C.A.R. contract mediation is automatically a part of the contract. If you signed Liquidated Damages that is another part of the contract.
My understanding is the word Damages. The seller's damages would need to be proved. So read the contract, understand the contract and review the options you set in place in your contract (what ever that may be), mediation, arbitration, etc....
All the best to you.