A broker in Hawaii may deposit earnest money into which account without having their license suspended or revoked?

In Hawaii, a broker is permitted to deposit earnest money into a firm's escrow account because this aligns with the regulations established to ensure the secure and proper handling of client funds. An escrow account is specifically designed for holding funds that are to be disbursed later, as per the instructions of the parties involved in a transaction, ensuring that earnest money is kept safe and is separate from the broker's personal finances.

The use of a firm's escrow account protects the interests of the buyers and sellers since it provides transparency and accountability in transactions. It also ensures compliance with state laws that require brokers to manage client funds responsibly.

In contrast, depositing earnest money into a personal account, a third-party account, or a general fund account may not meet the legal criteria for handling such funds. Each of these alternatives lacks the specific protections and fiduciary responsibilities associated with an escrow account, which could lead to potential misuse or mismanagement of the funds. This could ultimately pose risks to both the broker's license and the clients involved in the transaction. Therefore, the firm’s escrow account is the only correct choice allowed under Hawaii real estate regulations.