The purchase and sales 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 property inspection. The broker should

Releasing the earnest money immediately contradicts the agreement's stipulation that it should only be released after the buyer's property inspection. This action could expose the broker to liability since it disregards the contractual terms that protect the buyer's interests.

Notifying the buyer of an intention to release the earnest money is unnecessary and inappropriate in this context, as the agreement does not allow for such a release until after the property inspection. The broker's responsibility is to uphold the terms of the contract rather than preemptively inform the buyer of a violation.

Even if the buyer verbally agrees, the broker cannot release the earnest money before the property inspection as per the purchase agreement. Relying on a verbal approval does not satisfy the formal requirements established in the contract and could lead to potential legal complications.