Contracts
In Arizona, a 'mutual release' of a purchase contract with earnest money dispute must be:
AOrdered by a judge
BSigned by both buyer and seller and typically by the escrow holder before earnest money is released✓ Correct
CApproved by the ADRE
DFiled with the county recorder
Explanation
When a contract is cancelled by mutual agreement, a mutual release form signed by both parties authorizes the escrow holder to disburse the earnest money as directed. Without mutual release, escrow cannot release disputed funds without court order.
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