Katherine and Jacob have entered an agreement for Katherine to purchase Jacob's home in Garner utilizing the 2-T Offer to Purchase and Contract from NC REALTORS. Katherine found out she cannot obtain financing on the home and is past her Due Diligence date on the purchase agreement. Katherine terminates the contract but notifies the listing firm who is holding the Earnest Money that she does not agree that the Earnest Money Deposit should be released to the seller. Jacob insists that the EMD should be forfeited to him. What should the listing firm do in this case?
a) Release the EMD to the seller as per the seller's request.
b) Hold the EMD until both parties reach an agreement or a resolution is provided by a legal authority.
c) Return the EMD to the buyer since the contract was terminated.
d) Forfeit the EMD to the listing firm as compensation for the inconvenience.