My wife just called reporting a problem with my mother-in-law's Corolla (ca. 2000, ca. 45,000 miles) and it looks like I may have go over there soon and do a little troubleshooting. The panel light for "brakes" came on intermittently and she reports she was able to make it go out (at least temporarily) by fiddling with the parking brake handle. She reports normal operation of the brakes with no squeaking or change from normal pedal pressure being required.
So, I first suspect its a problem with the parking brake switch or sensor. Where is that located, near the console/handle, along the cable, or near the rear brake itself? Yes, we will also consider that it may be an actual brake problem.