Which of the following is a permissible reason to deny a real estate application in Guam?

Denying a real estate application based on a prior felony conviction related to fraud is permissible because such convictions reflect a serious breach of trust and ethical standards which are crucial in the real estate profession. When assessing applicants for a real estate license, regulatory authorities consider the individual's background to ensure they possess the integrity and reliability necessary for handling financial transactions, client relations, and overall dealings in the real estate industry.

A felony conviction specifically tied to fraud is particularly concerning, as it raises questions about the individual’s character and judgment. Licensing boards often aim to protect public interest and maintain the profession's reputation, and allowing individuals with such convictions could undermine trust in real estate practices.

In contrast, while prior bankruptcy filings, low credit scores, and lack of experience in real estate might raise concerns or indicate potential issues in a candidate's background, they may not straightforwardly disqualify someone from obtaining a license. Financial difficulties can be part of an individual's past financial journey rather than a reflection of their current capability or ethical standing. For this reason, they are typically not considered as serious a concern as a criminal history involving fraud.