Where is your Realtor? Is he or she helping you or giving you any advise? I question signing away all your contingencies.
The law is, if you signed the liquidated damages, portion of your contract, and you breach the contract, which it sounds like you did, the seller is entitled to up to 3% of the bid for the property, but the seller must prove that they were damaged to that amount.
Did you sign the arbitration clause in your contract? This may have to go to arbitration.
I assume the $19,000 is being held in escrow. They will not release it without agreed upon instructions from both sides.
In short, the seller does not just get the money. They have to prove that they were damaged somehow.
Where is your Realtor?