Title III

CO-OWNERSHIP

Article 484

 There is co-ownership

 Whenever the ownership of an undivided thing or right

belongs to different persons

 Definition

- That state where an undivided thing or right belongs to two ro

more persons

- It is the right of common dominion which two or more persons

have in a spiritual part of a thing which is not physically divided

- It is not a juridical persons, cannot be sued

 What governs co-ownership?

o Contracts
o Special legal provisions
o Provisions of the Title on Co-ownership

 Sources of Co-ownership

a. By law
b. By contract
c. By chance
d. By occupation or occupancy
e. By succession or will

 Kinds of Ownership

a. Viewpoint of subject matter

1. Undivided thing
2. Undivided right

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 b. Viewpoint of Source

1. Contractual ownership
2. Non-contractual co-ownership

c. Viewpoint of the Rights of the Co-owners

1. Tenancy in common (or ownership in common or

just co-ownership)
2. Joint tenancy (joint ownership)

 Characteristics of Co-ownership

a. There must be more than one subject or owner.

b. There is one physical whole divided into ideal shares.
c. Each ideal share is definite in amount, but is not physically
segregated from the rest.
d. Regarding the physical whole, each co-owner must respect each
other in the common use, enjoyment or preservation of the
physical whole.
e. Regarding the Ideal share, each co-owner holds almost absolute
control over the same.
f. Not a juridical person.
g. A co-owner is in a sense a trustee for the other co-owners.

Article 485

 Share of co-owners in the benefits as well as charges

 Proportional to their respective interests

o ANY STIPULATION TO THE CONTRARY --- VOID

o Portions belonging to co-owners presumed to be equal

Article 486

 Each co-owner

 Use the thing owned in common

- Provided:

o Does so in accordance with the purpose which it is

intended

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 o In such way as not to injure the interest of the co-
ownership
o Or to prevent the other co-owners from using it
according to their rights

- Purpose of Co-ownership

o Change by agreement, express or implied

Article 487

 Action for ejectment

o May be filed by any one of the co owners

- Without the need of Joining other co-owners as co-plaintiffs

- For the benefit of all

- The term ejectment covers:

a. Forcible entry
b. Unlawful detainer
c. Accion publiciana
d. Accion reivindicatoria
e. Quieting of title
f. Replevin

Article 488

 Each co-owner

o Right to compel the other co-owners

 To contribute to the expenses of

preservation of the thing or right owned
in common
 To the taxes

o Anyone may exempt himself from this obligation

 By renouncing so much of his undivided

interest as may be equivalent to his share
of the expenses and taxes

o No waiver shall be made if it is prejudicial to the co-

ownership

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 - Renouncing Requires

 If the renouncing is in favor of the creditor

o Creditor must give his consent

 If the renouncing is in favor of other co-owners

o Consent of the co-owners and
ocreditor

- Reimbursement Covers:

 Necessary expenses (for preservation)

- Prejudicial Renunciation

 X and Y are co-owners of a house badly in need of

repairs in order to prevent a collapse. Before
expenses are incurred, X cannot renounce if Y does
not have enough money to cover all expenses. Y can
therefore contract with the repairmen and X would
still be liable despite his previous renunciation,
because if Y does not go ahead, prejudice would be
caused to the co-ownership.

Article 489

 Repair for preservation

o May be made at the will of one of the co-owners

o First notify his co-owners of the necessity of such
repairs

 Expenses to improve or embellish the thing

o Decided by majority (Art. 492)

- Consent of Co-owners:

a. Repairs ejectment action = ONE (Art. 489)

b. Alterations or acts of Ownership = All (Art. 491)
c. All others, like useful improvements, luxurious
embellishments, administration and better enjoyment
= FINANCIAL MAJORITY (Art. 492 and Art. 489)

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 - Can a co-owner go ahead with necessary repairs against the
opposition of the other co-owners?

- If no repairs were made due to opposition, who suffers the loss?

- If notification was made, would the other co-owners would still be

liable?

Article 490

 Whenever different stories of a house belong to different owners

 If the titles of ownership do not specify the terms under which they
should contribute to the necessary expenses
 There exists no agreement on the subject

 Main and party walls, the roof and the other things
used in common

 Preserved at the expense of all owners in

proportion to the value of the story
belonging to each

o Maintaining the floor of his story

 Cost born by each owner

o Floor of the entrance, front door, common yard and

sanitary works common to all

 Maintain at the expense of all the owners

pro rata

o Stairs from the entrance to the 1st story

 Maintained at the expenses of all the

owners pro rata with exception of the
owner of the ground floor

o Stairs from the second story

 Preserved at the expense of all, except the

owner of the ground floor and the owner
of the 1st story

- Perpendicular Ownership

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  Different stories belong to different persons

- Republic Act No. 4726

 Condominium Act

Article 491

 None of the co-owners

o Without the consent of others

o Make alterations in the thing owned in common
o Even though benefits for all would result therefrom

 Court afford adequate relief

o If the withholding of the consent by one or more of the

co-owners is clearly prejudicial to the common interest

- ALTERATIONS:

o An act of ownership; may be material or metaphysical and

give rise to a real right over the property owned in common

 Which is more or less permanent

 Changes the use of the thing
 Which prejudices the condition of the thing or its
enjoyment by the others

- Acts of Ownership

Article 492

 For Administration and better enjoyment

o Resolution of the majority shall be binding

 Majority is that which is approved by the

co-owners who represent the controlling
interest in the object of the co-ownership

o No majority

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 o Resolution of the majority be seriously prejudicial to
those interested in the property

 The court shall order such measures as it

may deem proper, including appointment
of an administrator

 Whenever a part of a thing belongs exclusively to one of the co-

owners and the remainder is owned in common

o Provision only apply to the part owned in common

- Acts of Administration or Management

 Those that do not involve alteration

 Those that may be renewed from time to time
 Those that have transitory effects, that is, do not
bind the co-ownership for a long time in the future
 Those that do not give rise to a real right over the
thing owned in common
 Those which even if called an alteration, do not
effect the substance or nature of the thing
 Those for the common benefit of all the co-owners
and not for only one or some of them.

- Limitations on the Right of the Financial majority

 Notice should be given to the minority so they can

be heard
 Justified only when the urgency of the case and the
difficulty of meeting with them render impracticable
the giving of such notice
 Minority may appeal to the court

Article 493

 Co-owner

o shall have full ownership of his part and the fruits and
benefits pertaining thereto
o may alienate, assign or mortgage it
o even substitute another person in its enjoyment

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 - EXCEPT:

o When personal rights are involved

- Effect of Alienation or mortgage

 Limited to the portion which may be allotted to

him in the division upon the termination of the
co-ownership

- Rules regarding the Real Rights of Co-ownership

 Each co-owner has full ownership of his part, and of

his share of the fruits and benefits

 He may alienate, assign, or mortgage his share

o Without prejudice to exercise of legal
redemption in proper case

 Even substitute another person in its enjoyment

except when personal rights are involved

 He may exempt himself from necessary expenses

and taxes by renouncing part of his interest in the
co-ownership

- Unauthorized Sale of the Entire Property

 If a co-owner sells the entire common property, the

sale is valid only insofar as his share is concerned,
unless the other co-owners consented to the sale

Article 494

 No co-owner shall be obliged to remain in the co-ownership

o Each co-owner may demand at any time the partition of

the thing owned in common, insofar as his share is
concerned

 Agreement to keep the thing Undivided for certain period of time

o Not exceeding 10 year, shall be valid

o Term may be extended by new agreement

 Donor or Testator

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 o May prohibit partition for a period which shall not
exceed twenty years

 No partition when prohibited by law

 No prescription

o Shall run in favor of a co-owners or co-heirs so long as

he expressly or impliedly recognized the co-ownership

- When co-owner may not successfully demand partition:

o If by agreement, partition is prohibited. (not exceeding 10

years)

o When partition is prohibit by a donor or testator, from

whom the property came. (not exceeding 20 years)

o When partition is prohibit by law

 As in case of conjugal partnership property

o When a physical partition would render the property

unserviceable but in this case, the property may be allotted
to one of the co-owners, who shall indemnify the others or
it will be sold, and the proceeds distributed.

o When the legal nature of the common property does not all
partition (case of a party wall)

- Prescription in favor of a Co-owner against the other Co-owner

o General Rule:

 One co-owner cannot acquire the whole

property as against the other co-owners

 When the co-owner concerned expressly or

impliedly recognizes the co-onwership

o Exceptions:

 When these conditions are complied:

o He must make known to the other co-

owners that he is definitely
repudiating the co-ownership and that
he is claiming complete ownership
over the entire property
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 o The evidence of repudiation and
knowledge on the part of the others
must be clear and convincing

o Continuous, open, peaceful, public,

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

o Period of Prescription (Statute of

Limitation) shall start to run only
from such repudiation of co-
ownership

Article 495

 Indivisible Objects

o Co-owners cannot demand a physical division of thing

in common when to do so would render it
unserviceable for the use for which it is intended

o Terminated in accordance with Art. 498

Article 496

 Partition
 Made by agreement between parties
 Judicial proceedings

o Governed by the Rules of Court

Article 497

 Creditors or assignees of the Co-ownership

o May take part in the division of the thing owned in

common
o May object to such division without their concurrence

- They cannot impugn any partition already executed

 Unless there is:

o Fraud

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 o Made notwithstanding a formal
opposition presented to prevent it,
without prejudice to the right of the
debtor or assignor to maintain its
validity

- Examples:

o A, B, and C are co-owners. A sold his share to X. Who is

entitled to participate in the partition, A or X.

 Answer: It depends. (research)

Article 498

 Thing essentially indivisible

 Co-owners cannot agree that it be allotted to one of them who shall
indemnify the others

o It shall be sold
o Proceeds distributed

Article 499

 Partition of a thing owned in common

o Not prejudice third persons

 Retain the rights of mortgage, servitude

 Or any other real rights belonging to them
before the division was made

 Personal rights remain in force

notwithstanding the partition

Article 500

 Effects of Partition

o Mutual accounting for benefits received

o Mutual reimbursement for expenses.
o Indemnity for damages in case of negligence or fraud
o Reciprocal warranty for

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  Defects of title (or eviction)
 Quality (hidden defects)
o Each former co-owner is deemed to have had exclusive
possession of the part allotted to him for the entire period
during which the co-possession laster
o Partition confers upon each, th exclusive title over his
respective share

Article 501

 Co-owner, after partition

o Liable for defects of title

o Quality of the portion assigned to each of the other co-
owners

- Co-ownership is extinguished:

 Judicial partition
 Extrajudicial partition
 When by prescription, one co-owner has acquired
the whole property by adverse possession as against
all the others, and repudiating unequivocally the co-
ownership of the other
 When a stranger acquires by prescription the thing
owned in common
 Merger in on co-owner
 Loss or destruction
 Expropriation

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