Notwithstanding and other provision of law, no landlord may raise the monthly rental of any tenant who occupies a residential unit used as a primary residence which is held pursuant to a verbal or oral lease or oral or verbal rental agreement by more than five percent (5%) per annum. Any such verbal agreement or lease shall be for an initial period of one year, and during such period, the tenant may not be evicted except for nonpayment of rent or for damage or destruction of the rented premises. At the expiration of such one year period and thereafter, the landlord shall give the tenant 90 days notice of eviction, except in cases of nonpayment of rent or damage or destruction of the rental premises by the tenant. In such cases, the landlord may not increase the rent by more than five percent (5%) per annum, and may not evict a tenant or terminate an oral or verbal lease or rental agreement in such case for the sole purpose of increasing the rent on a

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18 Guam Code Ann. BUSINESS STRUCTURE & FUNCTION CH. 51 HIRING OF REAL PROPERTY (LANDLORD & TENANT)

premises which has been rented pursuant to an oral or verbal lease or rental agreement.

It is the position of the Legislature that all residential rental agreements and leases should be in writing signed by both parties. Therefore, this Section shall not apply to written leases or rental agreements signed by both parties, nor shall it apply to the rental of residential or other property pursuant to a written lease or rental agreement. This Section shall apply only to verbal leases or verbal rental agreements entered into after January 1,
1988.

SOURCE: New section added by Compiler. Originally, this section was an uncodified section enacted by P.L. 19-10:XI:29 (11/14/87).