What is required when a broker establishes an account to hold money belonging to others?

The requirement that a broker must keep accurate and detailed records for at least three years aligns with the legal standards set forth regarding the management of funds held on behalf of clients. This three-year retention period ensures that records are available for review and auditing, providing transparency for regulatory compliance and protection against potential disputes.

In a real estate context, maintaining thorough records is crucial for accountability and traceability, especially when handling client funds, such as deposits or earnest money. The three-year period is consistent with common practices in the industry and aids in resolving any issues that may arise regarding the transactions.

Other options may reflect misconceptions about regulatory requirements. For instance, while accurate and detailed records are essential, specifying a seven-year requirement may not be applicable in this context as it exceeds the standard requirement for real estate transactions in Hawaii. Additionally, the stipulations regarding bank accounts or needing individual accounts for each transaction do not capture the fundamental requirement for record-keeping as outlined in the question. Therefore, focusing on the three-year record retention policy accurately reflects the broker’s obligations under real estate regulations.