Under TREC rules, a broker is closing a transaction and the contract specifies that the earnest money should be applied to the buyer's down payment at closing. The title company requests that the broker release the earnest money. Under TREC rules, what must the broker do?
Correct Answer
C) Release the funds only after receiving written authorization from all parties to the transaction
Under TREC rules, the broker should release earnest money from the trust account only upon proper authorization. At closing, the authorization typically comes through the settlement statement signed by all parties or specific written instructions from the parties.
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