What requirement must be met for a trust account?

The requirement that a trust account must include the words "trust" or "escrow" is crucial because it establishes the account's purpose and distinguishes it from personal or business accounts. By having these specific terms in the account name, it signals to all parties involved, including clients and financial institutions, that the funds held in the account are intended for specific fiduciary duties, such as managing clients' deposits, security deposits, or escrow funds related to real estate transactions.

Using clear terminology in account naming is part of maintaining transparency and accountability in property management practices. It ensures that funds are rightly allocated and handled, adhering to legal and ethical standards required by the state. This is particularly important as it guards against mismanagement or misappropriation of funds, which is vital in maintaining trust in the property management profession.

The other options suggest requirements that do not align with the primary function of a trust account. For instance, the specification regarding it being held in a credit union or only used for agent commissions misrepresents the broad purpose of trust accounts, which serve various obligations to clients, not just limited to commissions. Additionally, the notion of demand deposits does not pertain to the fundamental requirement of establishing a trust account effectively.