The purchase agreement provides for release of earnest money to the seller after the buyer's property inspection. The seller requests the earnest money prior to the inspection. The broker should:

Releasing the earnest money immediately would disregard the stipulations of the purchase agreement, which clearly states that the funds should not be released until after the property inspection. This action could expose the broker to liability for not adhering to the contractual obligations.

While notifying the buyer is a good practice, it does not address the core issue of the seller's request. The broker must act in accordance with the purchase agreement, which does not allow for the release of earnest money before the inspection. Simply notifying the buyer without taking appropriate action does not protect their interests.

Even with the buyer's verbal approval, the broker is still bound by the terms of the purchase agreement. The agreement stipulates that the earnest money is to be released only after the inspection, and failing to follow this could lead to disputes or claims against the broker.