Guam § 5414 - Deed Covenants.

§ 5414. Deed Covenants.

(a) Except as provided for in § 5415 of this Article, the deeds

conveying the properties developed pursuant to § 5412 of this Article

shall, among other provisions agreed by the Board, contain:

(1) a covenant that for a period of ten (10) years commencing

on the date of the conveyance, the grantee(s) or the heirs of the

grantee(s) must personally occupy the property conveyed and not

lease it to others;

(2) a covenant that for a period of ten (10) years commencing

on the date of the conveyance, the grantee(s), may not convey or

otherwise alienate the property to a third party, except that a

mortgage to a bona fide lending institution to secure funds to

purchase or construct a residence on the property or, that a mortgage

to a non-profit corporation organized under the laws of Guam that

has been approvedby GHURA for the purpose of constructing a

residence on the property, shall not be a violation of such rule even

if such mortgage is foreclosed; and

(3) a right of reverter clause to the Authority in the event that

any of the conditions, covenants or restrictions of the deed are

violated.

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(b) Except as provided for in § 5415 of this Article, any covenants

or restrictions in all existing deeds granted by the Authority pursuant to §

5401 through § 5411 of Title 12 of the Guam Code Annotated, are

hereby and shall be deemed to be amended to terminate ten (10) years

after the initial conveyance. As soon as practicable after the effective

date of this provision, the Authority shall record with the Department of

Land Management a document and release noting such amendment with

respect to all affected lot numbers, and shall also give public notice of

such amendment.