Under what circumstance should a broker NOT disburse trust funds from a designated trust account?

A broker should not disburse trust funds from a designated trust account solely with the written consent of the buyer because the disbursement of trust funds typically requires consent from all parties involved in the transaction, not just one. Trust funds are held in a fiduciary capacity to ensure that the interests of all parties, including the seller, are protected. This means that any disbursement should usually involve written consent from both the buyer and the seller or be dictated by the terms of the agreement.

In transactions, trust funds are often disputed or held until all parties acknowledge agreement on the terms of the disposition of those funds. Disbursing without the seller's consent can create serious legal and ethical issues for the broker. Hence, it's essential that all parties maintain a collective agreement before any funds are released.

For the other options, trust funds can legitimately be disbursed upon rejection of an offer, withdrawal of an offer, or at the closing of a transaction, as these actions typically involve mutual agreement or fulfill specific contractual obligations regarding the handling of funds.