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 stipulating that funds should only be disbursed after the buyer's property inspection. This action could expose the broker to legal consequences for failing to uphold the terms of the contract and compromising the buyer's interests.

While notification is important, the intention to release the earnest money contradicts the terms of the purchase and sales agreement. The broker should instead inform the seller that the earnest money cannot be released until after the property inspection, thus protecting the buyer's rights.

Even with the buyer's verbal approval, the broker is still bound by the written terms of the agreement. The release of earnest money without proper adherence to the contract could result in disputes and undermine the legal protections afforded to the buyer.