How should earnest money deposits be handled in Guam?

The correct approach for handling earnest money deposits in Guam involves depositing them into compliant trust accounts. This practice is essential for maintaining the integrity of the transaction and ensuring that the funds are safeguarded until the completion of the sale. Trust accounts are specifically established to hold clients' funds separately from the operating accounts of real estate agents or brokers, protecting both the buyer and seller’s interests.

By using compliant trust accounts, real estate professionals adhere to local regulations that govern the handling of earnest money. This fosters transparency and trust in the real estate process, as it ensures that earnest money will be available when needed for the transaction, such as being applied toward closing costs or addressing contingencies.

The other options do not align with industry practices and regulatory standards. Holding the earnest money by the seller could lead to conflicts of interest, while returning the money to the buyer immediately would undermine the purpose of the deposit in demonstrating the buyer's commitment. Using the earnest money as a commission for agents is also inappropriate, as it misappropriates funds that are meant to be a show of good faith in the transaction. Therefore, the correct handling of earnest money is through compliant trust accounts to ensure proper custody and accountability.