Guam Lien Law Summary

Prepared by:
Levy · von Beck & Associates, P.S.
600 University Street, Suite 3300
Seattle, WA 98101 (206) 626-5444
www.levy-law.com

Copr. © West 1997 No claim to orig. U.S. govt. works

GU ST T. 7, s 33201 7 G.C.A. § 33201

GUAM CODE ANNOTATED

TITLE 7. JUDICIARY AND CIVIL PROCEDURE

DIVISION 3. CIVIL SPECIAL PROCEEDINGS

CHAPTER 33. ENFORCEMENT OF LIENS

ARTICLE 2. LIENS OF MECHANICS AND OTHERS UPON REAL PROPERTY

Copr. © 1995, 1996. Government of Guam.

Current through 1995 Reg. Sess., P.L. 23-35

§ 33201. Mechanics, to have Lien for Value of Labor.

Mechanics, materialmen, contractors, subcontractors, artisans, architects, registered engineers, licensed land surveyors, machinists, builders, teamsters and draymen, and all persons and laborers of every class performing labor upon or bestowing skill or other necessary services on, or furnishing materials to be used or consumed in, or furnishing appliances, teams, or power contributing to, the construction, alteration, addition to, or repair, either in whole or in part, of any building, structure, or other work of improvement shall have a lien upon the property upon which they have bestowed labor or furnished materials or appliances for the value of such labor done or material furnished, and for the value of the use of such appliances, teams, or power, whether done or furnished at the instance of the owner or of any person acting by his authority or under him, as contractor or otherwise.

SOURCE: CCP § 1181.

7 G.C.A. § 33201

GU ST T. 7, § 33201

END OF DOCUMENT

Copr. © West 1997 No claim to orig. U.S. govt. works

GU ST T. 7, s 33202 7 G.C.A. § 33202

GUAM CODE ANNOTATED

TITLE 7. JUDICIARY AND CIVIL PROCEDURE

DIVISION 3. CIVIL SPECIAL PROCEEDINGS

CHAPTER 33. ENFORCEMENT OF LIENS

ARTICLE 2. LIENS OF MECHANICS AND OTHERS UPON REAL PROPERTY

Copr. © 1995, 1996. Government of Guam.

Current through 1995 Reg. Sess., P.L. 23-35

§33202. Work of Improvement: Improvement: Contractor, Deemed Agent.

(a)For the purposes of this Chapter, work of improvement includes, but is not restricted to, the construction, alteration, addition to, or repair, in whole or in part, of any building, wharf, bridge, ditch, flume, aqueduct, well, tunnel, fence, machinery, railroad, or wagon road, the seeding, sodding, or planting of any lot or tract of land for landscaping purposes, the filling, leveling, or grading of any lot or tract of land, the demolition of buildings, and the removal of buildings.

(b)For the purposes of this Chapter, except as otherwise provided herein, work of improvement and improvement mean the entire structure or scheme of improvement as a whole.

(c)For the purposes of this Chapter, every contractor, subcontractor, architect, builder, or other person having charge of the construction, alteration, addition to, or repair, in whole or in part, of any building or other work of improvement shall be held to be the agent of the owner.

SOURCE: CCP § 1182.

7 G.C.A. § 33202

GU ST T. 7, § 33202

END OF DOCUMENT

7 G.C.A. § 33203

GU ST T. 7, § 33203

END OF DOCUMENT

Copr. © West 1997 No claim to orig. U.S. govt. works

GU ST T. 7, s 33204 7 G.C.A. § 33204

GUAM CODE ANNOTATED

TITLE 7. JUDICIARY AND CIVIL PROCEDURE

DIVISION 3. CIVIL SPECIAL PROCEEDINGS

CHAPTER 33. ENFORCEMENT OF LIENS

ARTICLE 2. LIENS OF MECHANICS AND OTHERS UPON REAL PROPERTY

Copr. © 1995, 1996. Government of Guam.

Current through 1995 Reg. Sess., P.L. 23-35

§ 33204. Liens on Lots for Improvements.

Any person who, at the instance or request of the owner (or any other person acting by his authority or under him, as contractor or otherwise) of any lot or tract of land, grades, fills in, or otherwise improves the same, or the street, highway, or sidewalk in front of or adjoining the same, or constructs or installs, sewers or other public utilities therein, or constructs any areas, or vaults, or cellars, or rooms, under said sidewalks, or makes any improvements in connection therewith, has a lien upon said lot or tract of land for his work done and materials furnished.

SOURCE: CCP § 1184.

7 G.C.A. § 33204

GU ST T. 7, § 33204

END OF DOCUMENT

Copr. © West 1997 No claim to orig. U.S. govt. works

GU ST T. 7, s 33205 7 G.C.A. § 33205

GUAM CODE ANNOTATED

TITLE 7. JUDICIARY AND CIVIL PROCEDURE

DIVISION 3. CIVIL SPECIAL PROCEEDINGS

CHAPTER 33. ENFORCEMENT OF LIENS

ARTICLE 2. LIENS OF MECHANICS AND OTHERS UPON REAL PROPERTY

Copr. © 1995, 1996. Government of Guam.

Current through 1995 Reg. Sess., P.L. 23-35

§ 33205. Nature and Limitations of Lien: Filing Contracts or Modifications: Bond of Contractor.

(a) Direct lien: not limited by contract price: limitation as to maximum amount and extent.

The liens provided for by this Chapter shall be direct liens and shall not, in the case of any claimant other than the contractor, be limited as to amount, by any contract price agreed upon between the contractor and the owner except as hereinafter provided. Such liens shall not in any case exceed in amount the reasonable value of the labor done or materials furnished, or both, for which the lien is claimed, nor the price agreed upon for the same between the claimant and the person by whom he was employed. Such liens shall not, in any case where the claimant was employed by a contractor or subcontractor, extend to any labor or materials not embraced within or covered by the original contract between the contractor and the owner, or any modification thereof made by or with the consent of such owner, and of which such contract or modification thereof the claimant shall have had actual notice before the performance of such labor or the furnishing of such materials.

(b)Filing contract or modification: effect. The filing of an original contract for a work of improvement or of a modification of such original contract in the Department of Land Management before the commencement of the work, shall be equivalent to the giving of actual notice of the provisions thereof by the owner to all persons performing work or furnishing materials thereunder.

(c)Bond of contractor: minimum amount: nature and extent. In case said original contract shall, before the work is commenced, be so filed, together with a bond of the contractor, with good and sufficient sureties in an amount not less than fifty percent (50%) of the contract price named in said contract, which bond shall, in addition to any conditions for the performance of the contract, be also conditioned for the payment in full of the claims of all persons performing labor upon or furnishing materials to be used in, or furnishing appliances, teams, or power contributing to such work, and shall also by its terms be made to inure to the benefit of any and all persons who perform labor upon or furnish materials to be used in or furnish appliances,

teams, or power contributing to the work described in said contract as to give such persons right of action to recover upon said bond in any suit brought to foreclose the liens provided for in this Chapter, or in a separate suit brought on said bond, then the court must, where it would be equitable so to do, restrict the recovery under such liens to an aggregate amount equal to the amount found to be due from the owner to the contractor, and render judgment against the contractor and his sureties on said bond for any deficiency or difference there may remain between said amount so found to be due to the contractor and the whole amount found to be due to claimants for such labor or materials or both.

(d) Intent and purpose of section: limitation of owner's liability: exaction of security. It is the intent and purpose of this section to limit the owner's liability, in all cases, to the measure of the contract price where he shall have filed or caused to be filed in good faith with his original contract a valid bond with good ad sufficient sureties in the amount and upon the conditions as herein provided. It shall be lawful for the owner to protect himself against any failure of the contractor to perform his contract and make full payment for all work done and materials furnished thereunder by exacting such bond or other surety as he may deem necessary.

SOURCE: CCP § 1185.

7 G.C.A. § 33205

GU ST T. 7, § 33205

END OF DOCUMENT

Copr. © West 1997 No claim to orig. U.S. govt. works

GU ST T. 7, s 33206 7 G.C.A. § 33206

GUAM CODE ANNOTATED

TITLE 7. JUDICIARY AND CIVIL PROCEDURE

DIVISION 3. CIVIL SPECIAL PROCEEDINGS

CHAPTER 33. ENFORCEMENT OF LIENS

ARTICLE 2. LIENS OF MECHANICS AND OTHERS UPON REAL PROPERTY

Copr. © 1995, 1996. Government of Guam.

Current through 1995 Reg. Sess., P.L. 23-35

§ 33206. Amount Recoverable by Contractor: Defense of Action on Lien: Withholding Amount of Lien: Deduction or Recovery of Excess of Judgment and Costs: Owner's Act Not Prevention of Performance or Exoneration of Sureties.

(a)Any contractor shall be entitled to recover upon a lien filed by him, only such amount as may be due him according to the terms of his contract, after deducting all claims of other parties for work done and materials furnished, as aforesaid, and embraced within his contract.

(b)In all cases where a claim of lien shall be filed under this Article for work done or for materials furnished to any contractor, he shall defend any action brought thereon at his own expense; and during the pendency of such action, the owner may withhold from the contractor the amount of money for which such lien is filed. In case of judgment of such action against the owner or his property upon the lien, the said owner shall be entitled to deduct from any amount due, or to become due by him to the contractor, the amount of such judgment and costs; and if the amount of such judgment and costs shall exceed the amount due by him to the contractor, or if the owner shall have settled with the contractor in full, he shall be entitled to recover back from the contractor, or his bondsmen or sureties on any bond given for the faithful performance of his contract, any amount so paid by him, the said owner, in excess of the contract price, and for which the contractor was originally the party liable.

(c)No act done by such owner in compliance with any of the provisions of this Chapter shall be held to be a prevention of the performance of any such contract by the contractor, or to have exonerated the sureties on such or any bond given for faithful performance, or for the payment of liens of persons performing labor or furnishing materials, or both; provided, that such act was done in good faith and without design to injure or harass anyone.

SOURCE: CCP § 1186.

7 G.C.A. § 33206

GU ST T. 7, § 33206

END OF DOCUMENT

Copr. © West 1997 No claim to orig. U.S. govt. works

GU ST T. 7, s 33207 7 G.C.A. § 33207

GUAM CODE ANNOTATED

TITLE 7. JUDICIARY AND CIVIL PROCEDURE

DIVISION 3. CIVIL SPECIAL PROCEEDINGS

CHAPTER 33. ENFORCEMENT OF LIENS

ARTICLE 2. LIENS OF MECHANICS AND OTHERS UPON REAL PROPERTY

Copr. © 1995, 1996. Government of Guam.

Current through 1995 Reg. Sess., P.L. 23-35

§ 33207. Waiver or Impairment of Claims or Liens of Others; Written Consent.

It shall not be competent for the owner and contractor, or either of them, by any term of their contract, or otherwise, to waive, affect, or impair the claims and liens of other persons, whether with or without notice, except by their written consent, and any term of the contract to that effect shall be null and void.

SOURCE: CCP § 1187.

7 G.C.A. § 33207

GU ST T. 7, § 33207

END OF DOCUMENT

Copr. © West 1997 No claim to orig. U.S. govt. works

GU ST T. 7, s 33208 7 G.C.A. § 33208

GUAM CODE ANNOTATED

TITLE 7. JUDICIARY AND CIVIL PROCEDURE

DIVISION 3. CIVIL SPECIAL PROCEEDINGS

CHAPTER 33. ENFORCEMENT OF LIENS

ARTICLE 2. LIENS OF MECHANICS AND OTHERS UPON REAL PROPERTY

Copr. © 1995, 1996. Government of Guam.

Current through 1995 Reg. Sess., P.L. 23-35

§ 33208. Priority of Liens and Mortgages or Deeds of Trust.

The liens provided for in this Chapter are preferred to any lien, mortgage, deed of trust, or other encumbrance upon the premises and improvements to which the liens provided for in this Chapter attach which may have attached subsequent to the time when the building, improvement, structure, or work of improvement in connection with which the lien claimant has done his work or furnished his material was commenced; also to any liens, mortgage, deed of trust, or other encumbrance of which the lien claimant had no notice and which was unrecorded at the time the building, improvement, structure, or work of improvement on which such lien claimant has done his work or for which he has furnished his material, appliances or power was commenced.

A mortgage or deed of trust which would be prior to any of the liens provided for in this Chapter, to the extent of obligatory advances made thereunder in accordance with the commitment of the lender, shall also be prior to the liens provided for in this Chapter as to any other advances secured by such mortgage or deed of trust, which are used in payment of any claim of lien as provided for in this Chapter, if any, which is recorded at the date or dates of such other advances and thereafter in the payment of all or any part of the costs of any work of improvement on the property which is subject to such mortgage or deed of trust; provided, that the priority of such mortgage or deed of trust shall not exceed in total, for both obligatory advances made in accordance with the commitment of the lender and other advances, the amount of the original obligatory commitment of the lender as shown in said mortgage or deed of trust.

SOURCE: CCP § 1188.

7 G.C.A. § 33208

GU ST T. 7, § 33208

END OF DOCUMENT

Copr. © West 1997 No claim to orig. U.S. govt. works

GU ST T. 7, s 33209 7 G.C.A. § 33209

GUAM CODE ANNOTATED

TITLE 7. JUDICIARY AND CIVIL PROCEDURE

DIVISION 3. CIVIL SPECIAL PROCEEDINGS

CHAPTER 33. ENFORCEMENT OF LIENS

ARTICLE 2. LIENS OF MECHANICS AND OTHERS UPON REAL PROPERTY

Copr. © 1995, 1996. Government of Guam.

Current through 1995 Reg. Sess., P.L. 23-35

§ 33209. Mortgage or Deed of Trust Inferior to Liens Arising Out of Work of Improvement Upon Property: Filing Bond: Priority: Requisites of Bond: Liens Not Within Application of Section.

In the event the holder of any mortgage or deed of trust which otherwise would be inferior to the liens provided for in § 33201 through § 33208 inclusive of this Chapter, which liens arise out of a work of improvement upon the property to which the mortgage or deed of trust attaches, shall procure or cause to be procured a bond with good and sufficient sureties which complies with the requirements of this section and shall file such bond for record in the Department of Land Management in which the property is situated, either concurrently with or after the filing for record of such mortgage or deed of trust, then such mortgage or deed of trust shall be prior and paramount to the liens of all persons arising out of such work of improvement for work done or materials furnished subsequent to the time such bond is filed as herein provided. Such bond, upon which either the contractor or owner may be the principal, must comply with the following requirements: (1) it must be in an amount not less than seventy-five percent (75%) of the face principal amount of such mortgage or deed of trust, (2) it must refer to the mortgage or deed of trust in connection with which the bond is given, and (3) it must be conditioned for the payment in full of the claims of all persons performing labor upon or furnishing materials to be used in, or furnishing appliances, teams, or power contributing to such work of improvement, and there must be incorporated in such bond a provision by its express terms making it inure to the sole benefit of any and all persons who perform labor upon, or furnish materials to be used in, or furnish appliances, teams, or power contributing to such work of improvement, so as to give such persons a right to recover upon said bond in any suit to foreclose such liens, or in a separate suit brought on said bond.

The provisions of this section shall not apply to liens provided for by § 33204 this Title, the priority of such liens being as provided by § 33210(b) of this Title.

The original record of any bond, or a certified copy thereof, which has been filed for record pursuant to this Article, may be read in evidence in an action or proceeding with the like effect as the original instrument, without further proof.

SOURCE: CCP § 1189.

7 G.C.A. § 33209

GU ST T. 7, § 33209

END OF DOCUMENT

Copr. © West 1997 No claim to orig. U.S. govt. works

GU ST T. 7, s 33210 7 G.C.A. § 33210

GUAM CODE ANNOTATED

TITLE 7. JUDICIARY AND CIVIL PROCEDURE

DIVISION 3. CIVIL SPECIAL PROCEEDINGS

CHAPTER 33. ENFORCEMENT OF LIENS

ARTICLE 2. LIENS OF MECHANICS AND OTHERS UPON REAL PROPERTY

Copr. © 1995, 1996. Government of Guam.

Current through 1995 Reg. Sess., P.L. 23-35

§33210. Improvements Provided for by Separate Contract: Preferences.

(a)If the work of improvement of the character referred to in § 33204 is provided for in a separate contract from any contract or agreement with respect to the erection of residential units or other structures upon said lot or tract of land, then the work of improvement of the character referred to in that section shall be deemed a separate work of improvement and the commencement thereof shall not constitute a commencement of the work of improvement, consisting of the erection of any residential unit or other structure upon said lot or tract of land.

(b)The liens provided for in § 33204 are preferred to (1) any mortgage, deed of trust, or other encumbrance which may have attached subsequent to the time when the work of improvement of the character referred to in that section, in connection with which the lien claimant has done his work or furnished his materials was commenced; or to (2) any mortgage, deed of trust, or other encumbrance of which the lien claimant had no notice and which was unrecorded at the time when such work of improvement was commenced; or to (3) any mortgage, deed of trust, or other encumbrance recorded before the commencement of the work of improvement of the character referred to in that section, which was given for the sole or primary purpose of financing such work of improvement, unless the loan proceeds are, in good faith, placed in the control of the lender under a binding agreement with the borrower to the effect that such proceeds are to be applied to the payment of claims for labor performed or materials used or consumed in such work of improvement, and that no portion of such proceeds will be paid to the borrower in the absence of satisfactory evidence that all claims for such labor or materials have been paid, or that the time for filing claims of lien arising out of such work of improvement has expired and no such claims have been filed; provided, however, that in the event the owner of the land or the holder of any mortgage, deed of trust, or other encumbrance thereon shall procure or cause to be procured a bond with good and sufficient sureties which shall be conditioned for the payment in full of the claims of all persons performing labor upon, or furnishing materials to be used in, or furnishing appliances, teams, or power contributing to such work of improvement, and shall cause to be incorporated in said bond a provision by its express terms making it inure to the benefit of any and all persons who perform labor upon, or furnish materials to be used in, or furnish appliances, teams, or power contributing to such work of improvement, so as to give

such persons a right to recover upon said bond in any suit brought to foreclose the liens provided for in this Chapter, or in a separate suit brought on said bond, then such mortgage, deed of trust, or other encumbrance shall be prior and paramount to the liens provided for in that section arising out of such work of improvement, irrespective of whether or not such mortgage, deed of trust, or other encumbrance attached before or after the time when the work of improvement commenced and irrespective of the nature or provisions for payment of the consideration of such mortgage, deed of trust, or encumbrance. Such bond given under this section must, in order to comply with its requirements, be either (1) a statuary labor and materials bond, complying with all of the provisions of § 33205 of this Article, save and except that said last mentioned bond may, instead of being filed with the original contract before the work of improvement is commenced, be filed for record in the Department of Land Management at any time before such work of improvement has been completed, or such bond may be (2) a bond with good and sufficient sureties in an amount not less than fifty percent (50%) of the face principal amount of such mortgage, deed of trust, or other encumbrance, and shall be given for the sole benefit of persons performing labor upon, or furnishing materials to be used in, or furnishing appliances, teams, or power contributing to the work of improvement to which said bond refers, upon which last mentioned bond either the contractor or the owner may be principal, and which last mentioned bond shall be filed for record, in order to comply with the requirements of this section, before the work of improvement to which said bond refers is completed.

SOURCE: CCP § 1190.

7 G.C.A. § 33210

GU ST T. 7, § 33210

END OF DOCUMENT

792618 - LEVY & ASSOCIATE