Under what condition may earnest money be deposited by either the listing or selling firm?

The deposit of earnest money by either the listing or selling firm is contingent upon the direction provided by the parties involved in the transaction. When the parties instruct the broker to hold trust funds, it establishes a clear agreement that the broker is authorized to accept and manage the earnest money on their behalf. This arrangement is typically made to provide security for the transaction, ensuring that the buyer has a vested interest in proceeding with the sale while also protecting the seller’s interests.

Each of the other conditions presented does not align with the standard practices concerning earnest money deposits. For instance, the existence or non-existence of a tenant agreement does not generally influence how earnest money is handled in a real estate transaction. Additionally, while a certain sale price could theoretically affect earnest money considerations, it is not a standard requirement for the deposit. Finally, while seller agreement is important, without specific instruction to the broker to hold funds, a mere agreement from the seller alone is insufficient for the proper handling of earnest money. The emphasis is clearly on the need for explicit direction to the broker, which underscores the correct answer.