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 violates the stipulations of the purchase and sales agreement, which specifically states that the funds should be held until after the buyer's property inspection. This action could jeopardize the buyer's trust and rights in the transaction.

While notifying the buyer is a reasonable action, it does not address the core issue of releasing the earnest money prematurely. The broker is obligated to adhere to the terms of the agreement, which does not allow for the release of funds prior to the inspection, making this option insufficient.

Releasing the earnest money based on verbal approval is not advisable, as it bypasses the formal requirements of the purchase and sales agreement. Additionally, verbal agreements can lead to misunderstandings and disputes, further complicating the transaction.