Question 58

The broker may not release the earnest money upon the buyer's written request.

Releasing earnest money solely based on the buyer's written request is not permitted, as it does not take into account the interests of both parties involved in the transaction.

A) by final order of the court.

This option is correct because if a court orders the release of earnest money, the broker is obligated to comply with that legal directive, ensuring that the funds are handled according to the law.

B) upon the buyer's written request.

This option is incorrect as it implies that the broker can release earnest money without considering the seller's position or any agreements made between the parties. A unilateral request from the buyer does not provide sufficient authority for the broker to release funds from the trust account.

C) at the consummation of the transaction.

This option is correct because at the conclusion of the real estate transaction, the earnest money is typically applied towards the purchase price or returned, depending on the terms agreed upon, thus allowing the broker to release it.

D) according to written instructions signed by buyer and seller.

This option is correct as it ensures that both parties have agreed to the release of the earnest money, providing adequate authority for the broker to act on their behalf.

Conclusion

The correct answer is that the broker may not release the earnest money upon the buyer's written request, as it lacks the necessary mutual consent from both parties involved in the transaction. All other options represent valid scenarios where the broker is authorized to release the funds, emphasizing the importance of collaboration and legal authority in managing earnest money.