Agency
In Virginia, when the parties in a real estate transaction decide on their own to terminate a contract, the agent's role in releasing the earnest money is to:
AKeep it as earned compensation
BFollow written instructions from both parties directing disbursement✓ Correct
CReturn it automatically to the buyer
DGive it to the seller automatically
Explanation
Earnest money can only be disbursed with written authorization from all parties to the contract or pursuant to a court order. The agent cannot unilaterally decide who gets the money.
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