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 stipulations set forth in the purchase and sales agreement. This action would not only breach the contract but could also lead to legal repercussions for the broker, as it disregards the buyer's rights established in the agreement.

While notifying the buyer may seem considerate, it is unnecessary and improper since the broker does not have the authority to release the earnest money before the property inspection. The agreement's terms must be upheld, which means no intention to release should be communicated until the specified conditions are satisfied.

Even with the buyer's verbal approval, the broker cannot release the earnest money prior to the property inspection as stipulated in the agreement. Verbal agreements do not hold the same weight as written contracts, and the broker must follow the established contractual obligations to ensure compliance and protect all parties involved.