CASE TITLE FACTS AND ISSUE RULING

Mercado vs. PARTIES TO THE CASE WHAT A CO-OWNER MAY DISPOSE OF UNDER ART. 493 IS ONLY HIS
Liwanag, GR Petitioners: Ramon and Basilia Mercado – owners of the parcel of UNIDIVIDED ALIQUOT SHARE, WHICH SHALL BE LIMITED TO THE
14429, June 30, land subject of this case PORTION WHICH MAY BE ALLOTTED TO HIM UPON TERMINATION
1962 Respondent: Pio D. Liwanag – buyer of the parcel of land OF THE CO-OWNERSHIP. HE HAS NO RIGHT TO DIVIDE THE
PROPERTY INTO PARTS AND THEN ONVEY ONE PART, BY METES
In the alienation or HOW THE DISPUTE STARTED AND BOUNDS.
mortgage of  Ramon Mercado and Pio Liwanag executed a Deed of  Art. 493: "Each co-owner shall have the full ownership of his
property under co- Absolute Sale part and of the fruits and benefits pertaining thereto, and he
ownership, each o Area of the parcel of land subject of the sale: 2,196 may, therefore, alienate, assign or mortgage it, and even
co-owner may only sqm. substitute another person in its enjoyment, except when
sell or mortgage o Amount: P7.00/sqm or a total of P15,372 personal rights are involved. But the effect of the alienation or
the property to the o Situated at Kangkong, QC the mortgage, with respect to the co- owners shall be limited to
extent of the o Promissory note was executed for P10,000 and a the portion which may be allotted to him in the division upon
portion allotted to receipt was issued, signed by Ramon Mercado the termination of the co-ownership."
him in the division o Total area to which the parcel of land belongs: 4,392
upon the sqm. AS FAR AS BASILIA MERCADO IS CONCERNED, SHE RETAINS IN ALL
termination of the THEIR INTEGRITY HER RIGHTS AS CO-OWNER WHICH SHE HAD
 Ramon and Basilia own the total area of the land in which
said co-ownership BEFORE THE SALE, AND CONSEQUENTLY, SHE HAS NO CAUSE TO
the parcel of land subject of the sale belongs, and a
corresponding TCT is issued in their name COMPLAIN
o TCT mentions that Ramon and Basilia Mercado  Upon the registration of the sale and the cancellation of the
were co-owners PRO-INDIVISO transfer certificate of title in the names of Ramon and Basilia as
co-owners, the new transfer certificate of title that was issues
 The sale, however, was without the knowledge and consent
carried the names of Pio Liwanag and Basilia Mercado as “co-
of Bqsilia Mercado
owners, pro-indiviso”.
 Out of the total, 4,392 sqm., 391 sqm. was expropriated by
 There is no suggestion by any of the parties that the new TCT is
National Power Corp. (NAPOCOR) sometime in Dec. 1953
invalid, irregular, or inaccurate; no prayer that it be cancelled
o P10.00/sqm.
 Ramon Mercado has no cause to complain for he was
o Fact of appropriation came to the knowledge of Pio
responsible for whatever indicia there may be in the deed of
Liwanag only upon the registration of the deed of
sale that a determinate portion of the property was being sold.
sale previously executed
 Pursuant to the deed of sale executed between Ramon THE TITLE IS THE FINAL AND CONCLUSIVE REPOSITORY IF RGHT
Basilio and Pio Liwanag, TCT No. 32752 was issued in the OF THE NEW CO-OWNERS.
names of Pio Liwanag AND Basilia Mercado
 According to this title, what appellee required by virtue of the
 Ramon and Basilia seeks the annulment of the Deed of Sale sale is only an undivided half-share of the property, which,
based on the foregoing facts, in relation to Art. 439 of the under the law, Ramon Mercado had the absolute right to
Civil Code dispose of.
RTC RULING: DISMISSED the complaint
 RTC did not commit any error in dismissing the action
 To this ruling, they appealed to the SC
Decision appealed from is AFFIRMED, with costs against apellants
ARGUMENTS OF PETITIONERS (MERCADOS)
 The sale involved the disposal of a divided and determined
half of the land under a co-ownership

ISSUE/S: WoN the sale was valid

WoN Ramon Mercado may dispose of the entire portion of the lot,
including the share owned by Basilia