If a buyer needs funds for a termite inspection from their earnest money deposit, what condition must be met for the broker to disburse the funds?

For a broker to disburse funds from a buyer's earnest money deposit for a termite inspection, there must be a written agreement signed by all interested parties. This requirement ensures that all parties involved in the transaction acknowledge and consent to the use of earnest money for purposes other than the initial deposit intended, such as inspections.

This provision is in place to protect the interests of all parties and to maintain transparency in the transaction. When everyone involved agrees in writing, it mitigates potential disputes and misunderstandings regarding the use of funds. It creates a clear record that the parties have consented to the change in the use of those funds, thereby making the process smoother and legally compliant.

Without such an agreement, the broker may not have the authority to release the funds, as doing so could expose them to liability or violate the terms of the earnest money agreement. This requirement reflects the need for mutual consent in financial matters related to the real estate transaction.