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2022 Guam Statutes
Title 21 - Real Property
Division 1 - Ownership of Real or Immovable Property
Chapter 45 - Horizontal Property Act

Universal Citation: 21 Guam Code §§ 45101 - 45155 (2022)
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21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT CHAPTER 45 HORIZONTAL PROPERTY ACT § 45101. § 45102. § 45103. § 45104. § 45105. § 45106. § 45107. § 45108. § 45109. § 45110. § 45111. § 45112. § 45113. § 45114. § 45115. § 45116. § 45117. § 45118. § 45119. § 45120. § 45121. § 45122. § 45123. § 45124. § 45125. § 45126. § 45127. § 45128. § 45129. § 45130. Title. Definitions. Horizontal Property Regimes. Status of Apartments. Ownership of Apartments. Common Elements. Compliance with Covenants, Bylaws, and Administrative Provisions. Certain Work Prohibited. Liens Against Apartments; Removal From Lien; Effect of Part Payment. Common Profits and Expenses. Recordation and Contents of Declaration. Contents of Deeds or Leases of Apartments. Copy of the Floor Plans to be Filed. Financing Construction. Issuance of Final Reports Prior to Completion of Construction. Blanket Mortgages and Other Blanket Liens Affecting an Apartment at Time of First Conveyance or Lease. Removal From Provisions of this Chapter. Removal No Bar to Subsequent Resubmission. Bylaws. Contents of Bylaws. Books of Receipts and Expenditures; Availability for Examination. Waiver of Use of Common Elements; Abandonment of Apartment; Conveyance To Board of Directors. Separate Taxation. Priority of Lien. Joint and Several Liability of Grantor and Grantee for Unpaid Common Expenses. Insurance. Actions. Personal Application. Notification of Intention. Questionnaire and Filing Fee. 1 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT § 45131. § 45132. § 45133. § 45134. § 45135. § 45136. § 45137. § 45138. § 45139. § 45140. § 45141. § 45142. § 45143. § 45144. § 45145. § 45146. § 45147. § 45148. § 45149. § 45150. § 45151. § 45152. Inspection. Inspection Expenses. Waiver of Inspection. Public Reports. Preliminary Public Report. Filing With Commission Required. Changes in Building Plans. Enforceability of Sales. One Year Limit. Escrow Requirement. Copy of Public Report to be Given to Prospective Purchaser. Supplementary Public Report. True Copies of Public Report. Request for Hearing by Developer. Misleading Statements and Omissions. Penalties. Remedies, Sales Voidable When and By Whom. Investigatory Powers. Cease and Desist Orders. Power to Enjoin. Deposit of Fees. Supplemental Regulations Governing Horizontal Property Regime. § 45153. Limitation of Action. § 45154. Automatic Expiration of Public Reports. § 45155. Chapter Not Exclusive. NOTE: The Horizontal Property Act (§ 45101- § 45155) was enacted as an addition to the Civil Code by P.L. 10-165. § 45101. Title. This Chapter shall known as the Horizontal Property Act. SOURCE: CC '1270. § 45102. Definitions. Unless it is plainly evident from the context that a different meaning is intended, as used herein: (a) Apartment means a part of the property intended for any type of use or uses, and with an exit to a public street or highway or to a common element or elements leading to a public street or highway, and may include 2 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT such appurtenances as garage and other parking space, storage room, balcony, terrace, and patio. (b) Apartment owner means the person owning, or the persons owning jointly or in common, an apartment and the common interest appertaining thereto; provided, that to such extent and for such purposes, including the exercise of voting rights, as shall be provided buy lease filed with the Board of Directors, a lessee of an apartment shall be deemed to be the owner thereof. (c) Association of apartment owners means all the apartment owners acting as a group in accordance with the bylaws and declaration. (d) Building Official means the Director of Public Works, or his deputy. (e) Commission means the Territorial Land Use Commission of Guam, as provided in Chapter 60 of this Title. (f) Common elements, unless otherwise provided in the declaration, means an includes: (1) The land included in the horizontal property regime, whether leased or in fee simple; (2) The foundations, columns, girders, beams, supports, main walls, roofs, halls, corridors, lobbies, stairs, stairways, fire escapes, and entrances and exits of the building or buildings; (3) The basements, flat roofs, yards, gardens, recreational facilities, parking areas, and storage spaces; (4) The premises for the lodging or use of janitors and other persons employed for the operation of the property; (5) Central and appurtenant installations for services such as power, light, gas, hot and cold water, heating, refrigeration, air conditioning, and incinerators; (6) The elevators, escalators, tanks, pumps, motors, fans, compressors, ducts, and in general all apparatus and installations existing for common use; (7) Such facilities as may be designated as common elements in the declaration; and 3 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT (8) All other parts of the property necessary or convenient to its existence, maintenance, and safety, or normally in common use. (g) Common expense means and includes: (1) Expenses of operation of the property; and (2) All sums designated common expenses by or pursuant to this Chapter, the declaration or the bylaws. (h) Common interest means such percentage of the undivided interests in the common elements appertaining to each apartment, as expressed in the declaration, and any specified percentage of the common interests in the aggregate. (i) Common profits means the balance of all income, rents, profits, and revenues from the common elements remaining after the deduction of the common expenses. (j) Condominium means the ownership of single units, with common elements, located on property within the horizontal property regime. (k) Project means a real estate condominium project: a plan or project where a condominium of two or more apartments located within the horizontal property regime are offered or proposed to be offered for sale. (l) Declaration means the instrument by which the property is submitted to this Chapter, as hereinafter provided, and such declaration as from time to time amended. (m) Developer means a person who undertakes to develop a real estate condominium project. (n) Limited common elements means and includes those common elements designated in the declaration as reserved for the use of a certain apartment or certain apartments to the exclusion of the other apartments; provided, that no amendment of the declaration affecting any of the limited common elements shall be effective without the consent of the owner or owners of the apartment or apartments for the use of which such limited common elements are reserved. (o) Majority or majority of apartment owners means the owners of apartments to which are appurtenant more than fifty per cent (50%) of the common interests, and any specified percentage of the apartment owners means the owners of the apartments to which are appurtenant such percentage of the common interests. 4 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT (p) Master deed or master lease means any deed or lease showing the extent of the interest of the person submitting the property to the horizontal property regime. (q) Operation of the property means and includes the administration and operation of the property and the maintenance, repair, and replacement of, and the making of any additions and improvements to, the common elements. (r) Person means an individual firm, corporation, partnership, association, trust, or other legal entity, or any combination thereof. (s) Property means and includes the land, whether leasehold or in fee simple, to the extent of the interest held therein by the owner or lessee submitting such interest to the horizontal property regime, the building or buildings, all improvements and all structures thereon, and all easements, rights, and appurtenances belonging thereto, and all articles of personal property intended for use in connection therewith, which have been or are intended to be submitted to the regime established by this Chapter. A property may include two or more parcels of land separated only by public streets or ways. (t) To record means to record in accordance with Chapters 29 through 39 of this Title. (u) All pronouns used herein include the male, female, and neuter genders and include the singular or plural numbers, as the case may be. (v) Completion of construction means the issuance by the Building Official of a certificate of completion. SOURCE: CC '63102. § 45103. Horizontal Property Regimes. Whenever the sole owner or sole lessee or all of the owners or all of the lessees of a property expressly declare, through the execution and recordation of a master deed or lease, together with a declaration, which declaration shall set forth the particulars enumerated by § 45111, his or their desire to submit the property to the regime established by this Chapter, there shall thereby be established a horizontal property regime with respect to the property, and this Chapter shall be applicable to the property. If the master deed or lease is already recorded, the recordation of the declaration is sufficient to achieve the same result. SOURCE: CC '1272. 5 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT § 45104. Status of Apartments. Each apartment, together with the common interest appertaining thereto, shall for all purposes constitute real property and may be individually conveyed, leased, or encumbered and be the subject of ownership, possession, or sale and of all types of juridic acts inter vivos or mortis causa, as if it were sole and entirely independent of the other apartment or apartments in the property of which it forms a part, and the corresponding individual titles and interests shall be recordable. SOURCE: CC '1273. § 45105. Ownership of Apartments. The apartment owner is entitled to the exclusive ownership and possession of the apartment. Any apartment may be jointly or commonly owned by more than one person. SOURCE: CC '1274. § 45106. Common Elements. (a) Each apartment shall have appurtenant thereto a common interest as expressed in the declaration. (b) The common interest appurtenant to each apartment as expressed in the declaration shall have a permanent character and shall not be altered without the consent of all of the apartment owners affected, expressed in an amended declaration duly recorded. The common interest shall not be separated from the apartment to which it appertains and shall be deemed to be conveyed or encumbered with the apartment even though such interest is not expressly mentioned or described in the conveyance or other instrument. (c) The common elements shall remain undivided and no right shall exist to partition or divide any part thereof, except as otherwise expressed in this Chapter. Any provision to the contrary is void. (d) Each apartment owner may use the common elements in accordance with the purpose for which they were intended without hindering or encroaching upon the lawful rights of the other apartment owners, subject always to the exclusive use of the limited common elements as provided in the declaration. (e) The operation of the property shall be carried out as provided herein and in the declaration and the bylaws. 6 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT (f) The apartment owners shall have irrevocable right, to be exercised by the Board of Directors, to have access to each apartment from time to time during reasonable hours as may be necessary for the operation of the property or for making emergency repairs therein necessary to prevent damage to the common elements or to another apartment or apartments. SOURCE: CC '1275. § 45107. Compliance with Covenants, Bylaws, and Administrative Provisions. Each apartment owner shall comply strictly with the bylaws and with the administrative rules and regulations adopted pursuant thereto, as either of the same may be lawfully amended from time to time, and with the covenants, conditions, and restriction set forth in the declaration. Failure to comply with any of the same shall be ground for an action to recover sums due for damages or injunctive relief, or both, maintainable by the manager or Board of Directors on behalf of the association of apartment owners or, in a proper case, by an aggrieved apartment owner. SOURCE: CC '1276. § 45108. Certain Work Prohibited. No apartment owner shall do any work which would jeopardize the soundness or safety of the property, reduce the value thereof, or impair any easement or hereditament, nor may any apartment owner add any material structure or excavate any additional basement or cellar, without in every such case the unanimous consent of all the other apartment owners being first obtained; provided, that additions to or alterations of an apartment made within such apartment or within a limited common element appurtenant to and for the exclusive use of the apartment shall require approval only by the Board of Directors of the association of apartment owners and such percentage, number, or group of apartment owners as may be required by the declaration or bylaws. SOURCE: CC '1277. § 45109. Liens Against Apartments: Removal From Lien; Effect of Part Payment. (a) Subsequent to recording the declaration as provided in this Chapter, and while the property remains the subject of a horizontal property regime, no lien shall arise or be created against the common elements. During such 7 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT period, liens may arise or be created only against the several apartments and their respective common interests. (b) Labor performed on or materials furnished to an apartment shall not be the basis of a lien, pursuant to 7 GCA Chapter 33, against the apartment of any apartment owner not expressly consenting to or requesting the same, except that such express consent shall be deemed to be given by the owner of any apartment in the case of emergency repairs thereto. No labor performed on or materials furnished to the common elements shall be the basis of a lien thereon, but all funds received and to be received by the manager or Board of Directors in payment of common expenses, and the right to receive such funds, shall constitute trust funds for the purpose of paying the costs of such labor or materials performed or furnished at the express request or with the consent of the manager of Board of Directors, and the same shall be expended first for such purpose before spending any part of the same for any other purpose. SOURCE: CC '1278. § 45110. Common Profits and Expenses. The common profits of the property shall be distributed among, and the common expenses shall be charged to, the apartment owners in proportion to the common interests appurtenant to their respective apartments; provided, that in the case of limited common elements, all costs and expenses of every description pertaining thereto, including, but not limited to, the cost of the maintenance, repair, and replacement of, and the making of any additions and improvements to any limited common element, may be charged to the owners of the apartments for the use of which such limited common element is reserved in any equitable manner as set forth in the declaration. SOURCE: CC '1279. § 45111. Recordation and Contents of Declaration. The Department of Land Management shall immediately set up the mechanics and method by which recordation of a master deed or lease and the declaration may be made. Provisions shall be made for the recordation of a master deed or lease and the declaration may be made. Provisions shall be made for the recordation of instruments affecting the individual apartments on subsequent resales, mortgages, and other encumbrances, as is done with all other real estate recordation; provided, that certificates of title 8 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT shall not be issued for apartments. The declaration to which § 45103 refers shall express the following particulars: (a) Description of the land, whether leased or in fee simple, on which the building or buildings and improvements are or are to be located. (b) Description of the building or buildings, stating the number of stories and basements, the number of apartments, and the principal materials of which it is or they are constructed or to be constructed. (c) The apartment number of each apartment, and a statement of its location, approximate area, number of rooms, and immediate common element to which it has access, and any other data necessary for its proper identification. (d) Description of the common elements. (e) Description of the limited common elements, if any, stating to which apartments their use is reserved. (f) The percentage of undivided interests in the common elements appertaining to each apartment and its owner for all purposes, including voting. (g) Statement of the purposes for which the building or buildings and each of the apartments are intended and restricted as to use. (h) The name of a person to receive service of process in the cases hereinafter provided, together with the residence or place of business of the person which shall be within the municipality in which the property is located. (i) Provision as to the percentage of votes by the apartment owners which shall be determinative of whether to rebuild, repair, or restore the property in the event of damage or destruction of all part of the property. (j) Any further details in connection with the property which the person executing the declaration may deem desirable to set forth consistent with this Chapter. (k) The method by which the declaration may be amended, consistent with this Chapter. SOURCE: CC '1280. § 45112. Contents of Deeds or Leases of Apartments. Deeds or leases of apartments shall include the following particulars: 9 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT (a) Description of the land as provided in § 45111, or the post office address of the property, including either case an appropriate reference to the recording of the declaration. (b) The apartment number of the apartment in the declaration and any other data necessary for its proper identification. (c) Statement of the use for which the apartment is intended and restrictions on its use. (d) The common interest appertaining to the apartment. (e) All encumbrances on the apartment and any further details which the grantor and grantee, or lessor and lessee, deem desirable to set forth consistent with the declaration and this Chapter. SOURCE: CC '1281. § 45113. Copy of the Floor Plans to be Filed. Simultaneously with the recording of the declaration, there shall be filed in the office of the Recorder a set of the floor plans of the building or buildings, showing the layout, location, apartment numbers, and dimensions of the apartments, stating the name of the property or that it has no name, and bearing the verified statement of a registered architect or professional engineer certifying that it is an accurate copy of portions of the plans of the building or buildings as filed with and approved by the Building Official. If the plans do not include a verified statement by the architect or engineer that the plans fully and accurately depict the layout, location, apartment numbers, and dimensions of the apartments as built, there shall be recorded within thirty (30) days from the date of completion of the building or buildings, or from the date of occupancy of the building or buildings, whichever shall first occur, an amendment to the declaration to which shall be attached a verified statement of a registered architect or professional engineer certifying that the final plans theretofore filed, or being filed simultaneously with such amendment, fully and accurately depict the layout, location, apartment numbers, and dimensions of the apartments as built. The plans shall be kept by the Recorder in a separate file for each property, indexed in the same manner as a conveyance entitled to record, numbered serially in the order of receipt, each designated apartment ownership, with the name of the property, if any, and each containing an appropriate reference to the recording of the declaration. Correspondingly, the record of the declaration shall contain a reference to the file number of the floor plans of the building or buildings on the property affected thereby. 10 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT SOURCE: CC '1282. § 45114. Financing Construction. Should the apartments be conveyed or leased prior to the completion of construction of the building or buildings for the purpose of financing such construction, all moneys from the sale of such apartments, including any payments made on loan commitments from lending institutions, shall be deposited by the developer in a trust fund with a bank, savings and loan association, or trust company authorized to do business in Guam under an escrow arrangement. Disbursements from such fund may be made, from time to time, to pay for construction costs of the building or buildings in proportion to the valuation of the work completed by the contractor as certified by a registered architect or professional engineer, and for architectural, engineering, finance, and legal fees, and for other incidental expenses of the condominium project as approved by the mortgagee. The balance of the moneys remaining in the trust fund shall be disbursed only upon completion of the building or buildings, free and clear of all mechanic's and material men's liens. The Commission may impose other restrictions relative to the retention and disbursement of the trust fund. SOURCE: CC '1283. § 45115. Issuance of Final Reports Prior to Completion of Construction. No final public report may be issued prior to completion of construction of the project unless there is filed with the Commission. (a) A verified statement showing all costs involved in completing the project, including land payments or lease payments, real property taxes, construction costs, architect, engineering, and attorneys fees, financing costs, provisions for contingency, etc., which must be paid on or before the completion of construction of the building. (b) A verified estimate of the time of completion of construction of the total project; (c) Satisfactory evidence of sufficient funds to cover the total project cost from purchasers funds, equity funds, interim or permanent loan commitments, or other sources; (d) A copy of the executed construction contracts; (e) Satisfactory evidence of a performance bond of not less than one hundred percent (100%) of the cost of construction; 11 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT (f) If purchasers funds are to be used for construction, an executed copy of the escrow agreement for the trust fund required under § 45114 for financing construction, which shall expressly provide for: (1) No disbursements by the escrow agent for payment of construction costs unless bills are submitted with the request for such disbursements which have been approved or certified for payment by the mortgagee or a financially disinterested person; and (2) No disbursements from the balance of the trust fund after payment of construction costs pursuant to the preceding paragraph until the escrow agent receives satisfactory evidence that all mechanics' and material men's liens have been cleared, unless sufficient funds are set aside for any bona fide dispute. SOURCE: CC '1284. § 45116. Blanket Mortgages and Other Blanket Liens Affecting an Apartment at Time of First Conveyance or Lease. At time of first conveyance of lease of each apartment, every mortgage and other lien affecting both the apartment and any other apartment shall be paid and satisfied of record, or the apartment being conveyed or leased and its common interest shall be released therefrom by partial release duly recorded. SOURCE: CC '1285. § 45117. Removal From Provisions of this Chapter. (a) If (1) apartment owners owning not less than eighty percent (80%) in number of apartments in the aggregate, and owning apartments to which are appurtenant not less than eighty percent (80%) of the common interests, execute and record an instrument to the effect that the desire to remove the property from this Chapter, and the holders of all liens affecting any of the apartments of the apartment owners executing such instrument consent thereto by instruments duly recorded, or (2) the common elements suffer substantial damage or destruction and such damage or destruction has not been rebuilt, repaired, or restored within a reasonable time after the occurrence thereof, or the apartment owners have earlier determined as provided in the declaration that such damage or destruction shall not be rebuilt, repaired, or restored, then, and in either event, the property shall be subject to an action for partition by any apartment owner or lienor as if owned in common, in which event the sale of the property shall be ordered by the court and the net proceeds of sale, together with the net proceeds of 12 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT the insurance of the property, if any, shall be considered as one fund and shall be divided among all the apartment owners in proportion to their respective common interests, provided, that no payment shall be made to an apartment owner until there has first been paid off out of his share of such net proceeds all liens on his apartment. Upon such sale, the property ceases to be the subject of a horizontal property regime or subject to this Chapter. (b) All of the apartment owners may remove a property, or a part of a property, from this Chapter by an instrument to that effect, duly recorded, provided that the holders of all liens affecting any of the apartments consent thereto, by instruments duly recorded. Upon such removal from this Chapter, the property, or the part of the property designated in the instrument, ceases to be the subject of a horizontal property regime or subject to this Chapter, and is deemed to be owned in common by the apartment owners in proportion to their respective common interests. SOURCE: CC '1286. § 45118. Removal No Bar to Subsequent Resubmission. The removal provided for in § 45117 shall in no way bar the subsequent resubmission of the property to this Chapter. SOURCE: CC '1287. § 45119. Bylaws. The operation of the property shall be governed bylaws, a true copy of which shall be annexed to the declaration and made a part thereof. No modification of or amendment to the bylaws is valid unless set forth in an amendment to the declaration, which amendment is duly recorded. SOURCE: CC '1288. § 45120. Contents of Bylaws. The bylaws shall provide for at least the following: (a) The election of a Board of Directors, the number of persons constituting the same, and that the terms of at least one-third (1/3) of the directors shall expire annually; the powers and duties of the Board; the compensation, if any, of the directors; the method of removal from office of directors; and whether or not the Board may engage the services of manager or managing agent, or both, and specifying which of the powers and duties granted to the Board by this Chapter or otherwise may be delegated by the Board to either or both of them. 13 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT (b) Method of calling meetings of the apartment owners; what percentage, if other than a majority of apartment owners, constitutes a quorum; and what percentage is, consistent with this Chapter, necessary to adopt decisions binding on all apartment owners. (c) Election of a president from among the Board of Directors who shall preside over the meetings of the Board of Directors and of the association of apartment owners. (d) Election of a secretary who shall keep the minute book wherein resolutions shall be recorded. (e) Election of a treasurer who shall keep the financial records and books of account. (f) Operation of the property, payment of the common expenses, and determination and collection of the common charges. (g) Manner of collecting from the apartment owners their share of the common expenses. (h) Designation and removal of personnel necessary for the maintenance, repair, and replacement of the common elements. (i) Method of adopting and of amending administrative rules and regulations governing the details of the operation and use of the common elements. (j) Such restrictions on and requirements respecting the use and maintenance of the apartments and the use of the common elements, not set forth in the declaration, as are designed to prevent unreasonable interference with the use of their respective apartments and of the common elements by the several apartment owners. (k) That seventy-five percent (75%) of the apartment owners may at any time modify or amend the bylaws, but each one of the particulars set forth in this section shall always be embodied in the bylaws. SOURCE: CC '1289. § 45121. Books of Receipts and Expenditures; Availability for Examination. The manager or Board of Directors shall keep detailed, accurate records in chronological order, of the receipts and expenditures affecting the common elements, specifying and itemizing the maintenance and repair expenses of the common elements and any other expenses incurred. 14 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT Records and the vouchers authorizing the payments shall be available for examination by the apartment owners at convenient hours of weekdays. SOURCE: CC '1290. § 45122. Waiver of Use of Common Elements; Abandonment of Apartment; Conveyance to Board of Directors. No apartment owner may exempt himself from liability for his contribution towards the common expenses by waiver of the use or enjoyment of any of the common elements or by abandonment of his apartment. Subject to such terms and conditions as may be specified in the bylaws, any apartment owner may, by conveying his apartment and his common interest to the Board of Directors on behalf of all other apartment owners, exempt himself from common expense thereafter accruing. SOURCE: CC '1291. § 45123. Separate Taxation. The laws relating to home exemptions from property taxes are applicable to the individual apartments, which shall have the benefit of home exemption in those cases where the owner of single family dwelling would qualify. Property taxes shall be assessed on and collected on the individual apartments and not on the property as a whole. Without limitation of the foregoing, each apartment and the common interest appertaining thereto shall be deemed to be a parcel and shall be subject to separate assessment and taxation for all types of taxes authorized by law, including, but not limited to, special assessments. SOURCE: CC '1292. § 45124. Priority of Lien. (a) All sums assessed by the association of apartment owners but unpaid for the share of the common expenses chargeable to any apartment constitute a lien on the apartment prior to all other liens, except only (l) liens for a taxes and assessments lawfully imposed by governmental authority against the apartment, and (2) all sums unpaid on mortgages of record. The lien may be foreclosed by suit by the manager or Board of Directors, acting on behalf of the apartment owners, in like manner as a mortgage of real property. In any such foreclosure the apartment owner shall be required to pay a reasonable rental for the apartment, if so provided in the bylaws, and the plaintiff in the foreclosure shall be entitled to the appointment of a receiver to collect the same. The manager or Board of 15 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT Directors, acting on behalf of the apartment owners, may, unless prohibited by the declaration, bid on the apartment at foreclosure sale, and acquire and hold, lease, mortgage, and convey the same. Suit to recover a money judgment for unpaid common expense shall be maintainable without foreclosing or waiving the lien securing the same. (b) Where the mortgagee of a mortgage of record or other purchaser of an apartment obtains title to the apartment as a result of foreclosure of the mortgage, the acquirer of title, his successors and assigns shall not be liable for the share of the common expenses of assessments by the association of apartment owners chargeable to the apartment which became due prior to the acquisition of title to the apartment by the acquirer. The unpaid share of common expenses or assessments shall be deemed to be common expenses collectible from all of the apartment owners, including the acquirer, his successors and assigns. SOURCE: CC '1293. § 45125. Joint and Several Liability of Grantor and Grantee For Unpaid Common Expenses. In a voluntary conveyance, the grantee of an apartment is jointly and severally liable with the grantor for all unpaid assessments against the latter for his share of the common expenses up to the time of the grant or conveyance, without, prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee therefor. However, any such grantor or grantee is entitled to a statement from the manager or Board of Directors setting forth the amount of the unpaid assessments against the grantor, and neither the grantor nor the grantee is liable for, nor is the apartment conveyed subject to a lien for, any unpaid assessments against the grantor in excess of the amount therein set forth. SOURCE: CC '1294. § 45126. Insurance. The manager or Board of Directors, if required by the declaration, bylaws, or by a majority of the apartment owners, shall obtain insurance for the property against loss or damage by fire and such other hazards under such terms and for such amounts as shall be required or requested. The insurance coverage shall be written on the property in the name of the manager or of the Board of Directors of the association or apartment owners, as trustee for each of the apartment owners in proportion to their respective common interests. Premiums shall be common expenses. 16 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT provision for the insurance shall be without prejudice to the right of each apartment owner to insure his own apartment for his benefit. SOURCE: CC '1295. § 45127. Actions. Without limiting the rights of any apartment owner, actions may be brought by the manager or Board of Directors, in either case in the discretion of the Board of Directors, on behalf of two or more of the apartment owners, as their respective interests may appear, with respect to any cause of action relating to the common elements or more than one apartment. Service of process on two or more apartment owners in any action relating to the common elements or more than one apartment maybe made on the person designated in the declaration to receive service of process. SOURCE: CC '1296. § 45128. Personal Application. (a) All apartment owners, tenants of such owners, employees of owners and tenants, or any other persons that may in any manner use property or any part thereof submitted to this Chapter are subject to this Chapter and to the declaration and bylaws of the association of apartment owners, adopted pursuant to this Chapter. (b) All agreements, decisions, and determinations lawfully made by the association of apartment owners in accordance with the voting percentages established in this Chapter, the declaration, or the bylaws are binding on all apartment owners. SOURCE: CC '1297. § 45129. Notification of Intention. Prior to the time when a condominium project is to be offered for sale in Guam, the developer shall notify the Commission in writing of his intention to sell such offerings. SOURCE: CC '1298C. § 45130. Questionnaire and Filing Fee. The notice of intention shall be accompanied by a fee of One Hundred Dollars ($100.00) and by a verified copy of a questionnaire properly filled in. The questionnaire will be in such form and content as will require full disclosure of all material facts reasonably available. All fees collected under 17 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT this Section shall be deposited in the Department of Land Management Land Survey Revolving Fund (LSRF). SOURCE: CC '1299. Amended by P.L. 29-002:V:III:10 (May 18, 2007). § 45131. Inspection. After appropriate notification has been made pursuant to '§ 45129 and 45130, an inspection of the condominium project may be made by the Commission. SOURCE: CC '1300. § 45132. Inspection Expenses. When an inspection is to be made of projects, the notice of intention shall be accompanied by the filing fee, together with an amount estimated by the Commission to be necessary to cover the actual expenses of the inspection, not to exceed Forty Dollars ($40.00) a day for each day consumed in the examination of the project. All fees collected under this Section shall be deposited in the Department of Land Management Land Survey Revolving Fund (LSRF). SOURCE: CC '1301. Amended by P.L. 29-002:V:III:11 (May 18, 2007). § 45133. Waiver of Inspection. The Commission may waive initial inspection when, in its opinion, a preliminary or final public report can be substantially drafted and issued from the contents of the questionnaire and other or subsequent inquiries. Failure of the Commission to notify the developer of its intent to inspect his project within ten (10) days after notification of intention is properly filed pursuant to '§ 45129 and 45130 will be construed a waiver of the inspection. SOURCE: CC '1302. § 45134. Public Reports. When the Commission makes an examination of any project, it shall make a public report of its findings, which shall contain all material facts reasonably available. A public report shall neither be construed to be an approval nor disapproval of a project. No final public report for a condominium project will be issued until execution and recordation of the deed or master lease, the declaration with a true copy of the bylaws annexed thereto, and floor plans as approved by the Building Official, as provided by '§ 45103, 45112 and 45119. 18 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT SOURCE: CC '1303. § 45135. Preliminary Public Report. A preliminary public report may be issued by the Commission upon receipt of a notice of intention, the filing of which is complete except for some particular requirement, or requirements, which is, or are, at the time not fulfilled but which may reasonably be expected to be completed. No preliminary report shall be issued unless the Commission is satisfied that the report adequately discloses all material facts which a prospective purchaser should consider and that adequate protection for purchaser's funds has been provided. SOURCE: CC '1304. § 45136. Filing With Commission Required. Preliminary public reports may not be used for selling under a contract for the sale of a condominium unit unless the developer of the project has filed with the Commission those documents and exhibits required to be submitted with the notification of intention required by § 45129 and § 45130, a specimen copy of the proposed contract of sale, and an executed copy of an escrow agreement with a third party depository for retention and disposition of purchaser's funds, in accordance with § 45140. SOURCE: CC '1305. § 45137. Changes in Building Plans. Purchaser's funds obtained prior to issuance of final reports shall be refunded if there is any change in the condominium building plans subsequent to execution of the contract requiring approval of the Building Official, unless purchaser's written approval or acceptance of the specific change is obtained. SOURCE: CC '1306. § 45138. Enforceability of Sales. Rights under contracts of sale of condominium units under a preliminary public report are not enforceable against purchasers until purchasers have had a full opportunity to read the Commission's final public report on the project, and to obtain a refund of any moneys paid as well as a release from all obligations if the final report differs in any material respect from the preliminary report. SOURCE: CC '1307. 19 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT § 45139. One Year Limit. If the final public report is not issued within one (1) year from the date of issuance of the preliminary report, purchasers are entitled to a refund of all moneys paid by the purchasers thereunder without further obligation. SOURCE: CC '1308. § 45140. Escrow Requirement. All moneys paid by purchasers prior to issuance of final reports shall be deposited in trust under escrow arrangement with instructions that no disbursements shall be made from such trust funds on behalf of the seller until the contract has become effective, and the requirements of '§ 45136 to 45139 have been met. SOURCE: CC '1309. § 45141. Copy of Public Report to be Given to Prospective Purchaser. The developer or any other person offering any unit in a condominium project prior to completion of its construction shall not enter into a binding contract or agreement for the sale or resale thereof until: (a) A true copy of the Commission's final public report thereon with all supplementary public reports, if any have been issued, has been given to the prospective purchaser. (b) The prospective purchaser has been given an opportunity to read the reports, and (c) The prospective purchaser executes his receipt for the reports. Receipts taken for any public report shall be kept on file in possession of the developer, subject to inspection at a reasonable time by the Commission or its deputies, for a period of three (3) years from the date the receipt was taken. SOURCE: CC '1310. § 45142. Supplementary Public Report. If after a final public report has been issued, any circumstance occurs which would render the final public report misleading as to purchasers, or if the developer proposes to materially change the project, the developer shall stop all sales and immediately submit sufficient information to the Commission to enable it to issue a supplementary public report describing the changes. Sales shall not resume until the supplementary report has been issued. 20 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT SOURCE: CC '1311. § 45143. True Copies of Public Report. The true copies of the Commission's public report shall be an exact reproduction of those prepared by the Commission. SOURCE: CC '1312. § 45144. Request for Hearing by Developer. When a final, preliminary or substitute public report is not issued within a reasonable time after notice of intention is properly filed pursuant to '§ 45129 and 45130, or if the developer is materially grieved by the form or content of a public report, the developer may, in writing, request and shall be given a hearing by the Commission within a reasonable time after receipt of request. SOURCE: CC '1313. § 45145. Misleading Statements and Omissions. No officer, agent, or employee of any company, and no other person may knowingly authorize, direct, or aid in the publication, advertisement, distribution, or circularization of any false statement or representation concerning any project offered for sale or lease, and no person may issue, circulate, publish, or distribute any advertisement, pamphlet, prospectus, or letter concerning any project which contains any written statement that is false or which contains an untrue statement of a material fact, or omits to state a material fact necessary in order to make the statements therein made, in the light of the circumstances under which they are made, not misleading. SOURCE: CC '1314. § 45146. Penalties. Any person who, in any respect, violates or fails to comply with any of the provisions set forth in Sections 45129 to 45152 and 45155, or who in any other respect violates or fails, omits, or neglects to obey, observe, or comply with any rule, order, decision, demand, or requirement of the Commission under Sections 45129 to 45152 and 45155, is guilty of a misdemeanor. SOURCE: CC '1315, as amended by P.L.13-187:10. § 45147. Remedies; Sales Voidable When and By Whom. Every sale made in violation of § 45145 is voidable at the election of the purchaser; and the person making such sale and every director, officer 21 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT or agent of or for such seller, if the director, officer, or agent has personally participated or aided in any way in making the sale, is jointly and severally liable to the purchaser in an action at law in any court or competent jurisdiction upon tender of the units sold or of the contract made, for the full amount paid by the purchaser, with interest, together with all taxable court costs and reasonable attorney's fees; provided, that no action shall be brought for the recovery of the purchase price after two (2) years from the date of the sale, and provided further, that no purchaser otherwise entitled shall claim or have the benefit of this section who has refused or failed to accept within thirty (30) days an offer in writing of the seller to take back the unit in question and to refund the full amount paid by the purchaser, together with interest at six percent (6%) on such amount for the period from the date of payment by the purchaser down to the date of repayment. SOURCE: CC '1316. § 45148. Investigatory Powers. If the Commission has reason to believe that a developer is violating any provision set forth in § 45129 to § 45152 and § 45155, or the rules and regulations of the Commission made pursuant thereto, the Commission may investigate the developer's project and examine the books, accounts, records, and files used in the project of the developer. For the purposes of examination, the developer is required to keep and maintain records of all sales transactions and of the funds received by him pursuant thereto, and to make them accessible to the Commission upon reasonable notice and demand. SOURCE: CC '1317. § 45149. Cease and Desist Orders. In addition to its authority under § 45150, whenever the Commission has reason to believe that any person is violating or has violated this Chapter, it shall issue and serve upon such person a complaint stating its charges in that respect, containing a notice of a hearing upon a day and at a place therein fixed at least thirty (30) days after the service of the complaint. The person so complained of has the right to appear at the place and time so fixed and show cause why an order should not be entered by the Commission requiring the person to cease and desist from the violation of the law charged in the complaint. If upon the hearing the Commission is of the opinion that this Chapter has been or is being violated, it shall make a report in writing, in which it shall state its findings as to the facts, and shall 22 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT issue an cause to be served on the person an order requiring the person to cease and desist from such violations. The person complained of may, within thirty (30) days after service upon him of the report or order, obtain a review thereof in the Superior Court. SOURCE: CC '1318. AIsland@ changed to Superior Court pursuant to P.L. 12-85. § 45150. Power to Enjoin. Whenever the Commission believes from satisfactory evidence that any person has violated any of '§ 45129 to 45152 and 45155 or the rules and regulations of the Commission made pursuant thereto, it may conduct an investigation on such matter, and bring an action in the name of the people of Guam in the Superior Court against the person to enjoin the person from continuing the violation or engaging therein or doing any act or acts in furtherance thereof. SOURCE: CC '1319. AIsland@ changed to Superior Court pursuant to P.L. 12-85. § 45151. Deposit of Fees. All fees collected under this Chapter shall be deposited to the credit of the general fund. SOURCE: CC '1319. § 45152. Supplemental Regulations Governing a Horizontal Property Regime. Whenever he deems it proper, the Governor may adopt supplement rules and regulations governing a horizontal property regime established under this Chapter in order to implement this program. SOURCE: CC '1321. § 45153. Limitation of Action. No civil or criminal actions shall be brought by the government of Guam pursuant to this Chapter more than one (1) year after the discovery of the facts upon which such actions are based or ten (10) years after completion of the sales transaction involved, whichever has first occurred. SOURCE: CC '1322. § 45154. Automatic Expiration of Public Reports. A public report shall expire thirteen (13) months after the date of issuance, unless a supplementary report has been issued or the Commission, 23 COL070307 21 GCA REAL PROPERTY CH. 45 HORIZONTAL PROPERTY ACT upon review of the registration, issues an order extending the effective period of the report. SOURCE: CC '1323. § 45155. Chapter Not Exclusive. This Chapter is in addition and supplemental to all other provisions of the laws of Guam; provided, that this Chapter shall not change the substantive law relating to registered land. SOURCE: CC '1324. --------- 24 COL070307 COL070307
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