Under what condition may a broker release funds from the firm escrow account?

The correct answer highlights that a broker may release funds from the firm's escrow account when both the buyer and seller agree on the distribution. This agreement is crucial because escrow accounts are designed to hold funds in a neutral manner during a transaction. The broker acts as a fiduciary, meaning they have a legal obligation to act in the best interests of both parties. Releasing funds without mutual consent could lead to disputes or legal issues, undermining the trust required in real estate transactions.

In circumstances where there is no agreement between the buyer and seller, the broker would typically be required to hold the funds until the parties reach a resolution or a legal directive is provided. This ensures that funds are handled transparently and in compliance with legal and ethical standards. Therefore, the condition requiring mutual agreement safeguards the interests of both the buyer and seller while maintaining the integrity of the escrow process.