CO-OWNERSHIP

4.

Definition:
-

State where an undivided thing

belongs to two or more persons;

or

right

The right of common dominion which two or

more persons have in a spiritual or ideal part
of a thing which is not physically divided.

Governed by:
Contracts

2.

Special legal provisions

3.

New Civil Code (Art. 484-501)

1.

There must be plurality of subjects or coowners;

2.

There is one physical whole divided into ideal,

undivided shares;

3.

Each ideal share is definite in amount, but is

not physically segregated from the rest;

4.

Each co-owner must respect each other in the

common use, enjoyment or preservation of the
physical whole;

5.

Re: Ideal share, each co-owner holds almost

absolute control over the same; he may
alienate, assign or mortgage it, but he cannot
substitute another person in its enjoyment,
when personal rights are involved;

6.

No juridical personality;

7.

A co-owner is a trustee for the others.

Sources:
1.

Law

2.

Contract

3.

Chance
treasure

4.

Occupation

5.

Succession or will intestate heirs prior to

partition

commixtion,

confusion,

4.

Characterists of Co-ownership

It is not a juridical person, nor is it granted any form of

juridical personality; thus, it cannot sue in court. The
co-owners must litigate in their individual capacities.

1.

own heirs
A minor co-owner does not benefit the
others for the purposes of prescription
(prescription runs against them)

hidden

Art. 485: Shares in Benefits and Charges

-

Del Mundo v. CA (GR L-25788, April 30, 1980)

The share of the co-owners in the benefits as

well as the charges shall be proportional to
their respective interests; any stipulation to
the contrary shall be void.

There is no co-ownership if the lot remains the

paraphernal property of somebodys wife.

Proportionality includes accretion or

alluvium; increase in area benefits all.

Republic v. Estenzo (GR L-35376, 1980)

Can only compel contribution if he has

already paid.

Res judicata generally applies in cadastral proceedings,

including adjudications of co-ownership.

Romana v. PCIB (1982)

Art. 486:
Common

There can be res judicata even if the doctrine involved

was resolved in an incidental order issued after the
promulgation of the said decision. (Note requisites of
res judicata)

Kinds of co-ownership
Subject Matter
1.

Undivided thing;

2.

Undivided right

Contractual co-ownership (agreement not

to divide thing for x years)

2.

Non-contractual co-ownership

1.
2.
3.

Tenancy in common (484)

2.

Joint tenancy/joint ownership

Tenancy in Common
Involves a physical whole, but there is an
ideal division
Each co-owner may dispose of his ideal or
undivided share without the others consent
Upon death, co-owners share goes to his

to

Use

Property

Owned

in

Each co-owner may use the thing owned in

common if he does so in a purpose for which it
is intended and in such a way as not to injure
the interest of the co-ownership or prevent the
other co-owners from using it according to
their rights.

The co-owner must be paid her share in the rent of a

house that was leased to another since she did not use
the property, to her detriment.
If the one using the property was a co-owner, rent
cannot be demanded from her. However, if the one
using the property was a lessee, the rents should be
given proportionally to all co-owners, even if they were
not using such property.

Rights of Co-owners
1.

Right

Pardell v. Bartolome (assigned case)

Source
1.

Presumption of equality of shares, unless

contrary is proven.

Art. 487: Action for ejectment

-

1.
2.
3.

May be brought by any of the co-owners (case

instituted by one was in behalf of all)
o

Exception: Co-owner expressly states

that he is bringing the case only for
himself

Art. 488: Expenses for Preservation

L
(

Each co-owner shall have the right to compel

the others to contribute to the preservation
expenses of a thing owned in common + taxes.
o

A co-owner may exempt himself by

renouncing so much of his undivided
interest equivalent to his share of the
expenses and taxes.

o
-

Renunciation in favor of the

creditor
requires
creditors
consent (adjudicacion en pago;
datio in solutum)
Renunciation of other coowners requires consent of coowners and creditors, since this
is a form of NOVATION.

Refusal to pay, although there is no

renunciation, creditors may still collect from
the delinquent co-owner.

A vendor selling real porperty must inform his coowners in writing, who may redeem the same within
thirty days. This does not apply if the co-owners were
present and active during the sale.
Art. 489: Consent of Co-Owners in Acts of
Preservation

Repairs for preservation may be made at the

will of one of the co-owners, but he must first
notify his co-owners of the necessity of such
repairs.
Expenses to improve or embellish the things
shall be decided by a majority, as determined
by the financial majority.
o

In a nutshell:

Repairs, ejectment 1

Alterations/acts of ownership ALL

Useful,
luxurious
improvements,
administration FINANCIAL MAJORITY

If there is unjustified opposition of the

majority,
necessary
repairs
were
not
undertaken, those who made the unjustified
opposition shall be responsible for resulting
damages.

Different stories belong to different persons,

and titles of ownership do not specify to the
terms regarding contribution of necessary
expenses and there is no agreement:
1.

Main and party walls, roof, other things

used in common proportion to the value
of story belonging to each;

2.

Floor of story, floor of entrance, front door,

common yard, sanitary works common to
all expense of all pro rata;

a.

Except: Owner of ground floor

b.

So on successively

4.

Each floor owner must bear the expenses

of his floor

5.

Stairs are to be maintained from story to

story by the users

None of the co-owners shall make alterations

in the thing owned in common without the
consent of others, even though everyone shall
benefit from it.
o

Exception: If the withholding of the

consent is clearly prejudicial to the
common interests, the courts may
afford adequate relief.

Alteration, defined: It is a change which is more or less

permanent which changes the use of the thing and
which prejudices the condition of the thing or its
enjoyment by the others. It may be material or
metaphysical and gives rise to a real right over a
property owned in common.
Examples:
1.

Sale, donation, mortgage

2.

Voluntary easements

3.

Lease of real properties if recorded or exceeds

one year

4.

Construction of a house on a lot owned in

common

5.

Acts of strict dominion or ownership

6.

Contracts of long duration

Castro v. Atienza (1973)

The approval, concurrence or consent of other coowners are not essential if a co-owner desires to
cancel, with respect to his ideal share, a lease of the
property owned in common and lease said share in
favor of another. (Lease must not be registered or
exceeds one year)
-

Even if no notification was made, the rest of

the co-owners shall still be liable for essential
repairs.

ART. 490: Perpendicular Co-Ownership (Rules)

Stairs from entrance to first story all

owners, pro rata;

Art. 491: Alterations, Acts of Ownership

No waiver may be done if prejudicial to

the co-ownership.

Distrito v. CA (1991)

3.

Unanimous consent may be given impliedly,

but only for the purpose of making the
alteration legal. However, it does not make the
other co-owners liable for the expenses for the
construction of the house.
PNB v. CA (GR L-34404, 1980)

Conjugal property inherited by the surviving spouse

and the children is co-owned. The surviving spouse
cannot mortgage the property by herself.
-

Replacement =/= alteration

An alteration is illegal if it is made without the

express or implied consent of the other coowners.
Effects:
o

Lose what he has spent;

Demolition can be compelled;

Liable for losses and damages;

Benefits derived by co-ownership will

belong to it;

If a house is built on a common lot,

every co-owner shall be entitled to rent
in a proportionate rate

Art. 492: Administration and Better Enjoyment

In cases of unauthorized sale of the entire

property, the sale is valid only insofar as his
share is concerned, EXCEPT if his co-owners
also consented or ratified the sale.

In cases of alienation, it shall be the stranger

who
shall
participate
in
the
partition
proceedings because the vendor has ceased to
have an interest in the co-ownership.

Art. 494: Partition at any time

Resolutions of the [financial] majority shall be

binding.

There shall be no majority unless the

resolution is approved by the co-owners who
represent the financial majority in the object of
the co-ownership.

No co-owner shall be obliged to remain in the

co-ownership. Each co-owner may demand at
any time the partition of the thing owned in
common.

An agreement to keep a thing undivided for a

certain period of time (BELOW 10 YEARS) shall
be valid; this term may be extended by a new
agreement.

A donor or testator may not prohibit partition

for a period which shall not exceed 20 years.

If there is no majority or if the resolution is

seriously prejudicial = court order.

If the part of the thing belongs exclusively to

one of the co-owners and the remainder owned
in common, Art. 492 shall only apply to the
part owned in common.

Acts of Administration:
1.

Do not involve alterations;

2.

Renewed from time to time;

3.

Transitory effects;

4.

Do not give rise to a real right over the thing

owned in common;

5.

Do not affect the substance and nature of the

thing;

6.

Common benefit for all the co-owners

o
-

Neither shall there be partition if prohibited by

law.

No prescription shall run in favor of a co-owner

or co-heir against his co-owners/heirs as long
as he expressly or impliedly recognizes the coownership.
o

He must make known to the others

that he is definitely repudiating the coownership, and he is claiming complete
ownership over the whole property.

Evidence of repudiation and knowledge

on the part of the others must be clear
and convincing.

The continuous, open, peaceful, public,

adverse possession for the period of
time required under the law must be
present.

Period of prescription runs only from

the repudiation of the ownership.

Limitations on the right of financial majority:

1.

Notice to minority before decision or resolution

is made;

2.

Majority would be justified in forgoing notice if

it is urgent and difficult to meet, rendering
the giving of notice impracticable

3.

Minority may appeal to the court against the

decision of the majority when there is no real
majority, the resolution is seriously prejudicial,
the majority refuses to correct abuse of
administration, or there is fraud and alteration.

Art. 495: Partition of an essentially indivisible

object
-

Art. 493: Right re: Proportionate or Ideal Share

-

Each co-owner shall have full ownership of his

part, including its fruits and benefits.

The co-owner may alienate, assign or

mortgage his share, or even substitute another
person in its enjoyment (except: personal
rights).

The effect of such alienation, etc. shall be

limited to the portion which may be allotted to
him in the division upon the termination of the
co-ownership.

No demand for a physical division of a thing

owned in common is allowed if it would render
the thing unserviceable for the use of which it
is intended.

Art. 496: Classification of the Various Kinds of

Partition
1.

2.

Caro v. CA (1982)
There can be no redemption of a share of a co-owner if
there has already been a partition of the property
formerly owned in common. This is true even if the
share had been sold while the co-ownership was still
existing.

Includes legitime.

3.

Cause
a.

Extrajudicial

b.

Judicial court approval is sought;

made by the court

Permanence
a.

Provisional

b.

Permanent

Subject Matter
a.

Real property

b.
4.

Personal property

without prejudice to the right of the

debtor or assignor to maintain its
validity.

Forms and Solemnities

a.

Judicial decree

b.

Duly registered
Property

c.

Public instrument

d.

Private instrument

e.

Oral Partition

in

the

Registry

of

Procedure:
1.

Set forth in a complaint the nature and extent

of title, description of the real estate, and
enjoin the other interested persons as
defendants
a.

2.

3.

An action for partition is not considered

as one for partition of the property
owned in common even though it is so
entitled IF any party to the suit denies
the undivided character of the estate
whose partition is sought and claims
exclusive title thereto or any part
thereof.

The Court must set a trial and find if the

plaintiff has the right thereto. If yes, partition.
If the parties have already made partition
amongst themselves by proper instruments of
conveyance, the court shall confirm the
partition and shall be recorded in the Register
of Deeds.
If the parties fail to agree on the partition, the
court shall appoint three competent and
disinterested persons as commissioners to
make the partition.

Art. 498: Partition of an essentially indivisible

object
-

Thing is essentially indivisible, and the coowners cannot agree that it be allotted to one
of them to indemnify the others, it shall be
sold and the proceeds distributed.

Termination of the co-ownership is made by

law, thus it is called legal or juridical
dissolution.

May also apply to objects essentially divisible

Art. 499: Protection of Third Persons Rights

-

The partition of a thing owned in common shall

not prejudice third persons who shall retain the
rights of mortgage, servitude or any other real
rights belonging to them before the division
was made. [REAL]

Personal rights pertaining to third persons

against the co-ownership shall also remain in
force.

All of those who did not, in any way, participate

or intervene in the partition are considered
third persons.

Art. 500: Effects of partition

-

Mutual accounting for benefits received

Reimbursements for expenses made.

Payment of damages by reason of negligence

or fraud

Reciprocal warranty for defects of title or

eviction, quality or hidden defects

Deemed to have exclusive possession of the

part allotted to him for the entire period that
co-possession lasted

Art. 497: Rights of Creditors re: Partition

-

The creditors or assignees of the co-owners

may take part in the division of the thing
owned in common and object to its being
effected without their concurrence.
They cannot impugn any partition already
executed
o

Exceptions:

Fraud

Made
notwithstanding
formal
opposition presented to prevent it,

Therefore, notice must always be given to the

creditors and assignees.

Art. 501: Reciprocal Warranty

Every co-owner shall, after partition, be liable

for defects of title and quality of the portion
assigned to each of the other c-owners