Final answer:
To have an interest-accruing client trust account, the principal broker must register the account as interest-bearing with the state. This complies with regulations to ensure appropriate handling of the interest earned, which may benefit the client or support eligible non-profits. The correct option is c.
Step-by-step explanation:
In order to have a client trust account which accrues interest, it is essential that the interest must be handled appropriately according to the laws and regulations that govern such accounts.
Typically, in the context of real estate, option c is correct where the (principal) broker must register the client trust account with the state as an interest-bearing account. This ensures that all legal requirements are met, and the interest can be used either for the benefit of the client or, in some cases, directed to eligible non-profit organizations based on arrangements like the Interest on Lawyers' Trust Accounts (IOLTA) programs.
Banks offer various types of accounts, like checking accounts and savings accounts, designed to meet different needs. While a checking account provides ease of access to funds with little or no interest, a savings account typically accrues interest, though access to funds might be less convenient. The dealings with interest when it comes to client trust accounts must be in strict adherence to professional and legal standards to prevent ethical issues such as commingling of funds or misappropriation.