2 - Co-Ownership

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Co-ownership

Mitchell & Zoe

TITLE III one of them can file a suit against the tenant
Co-ownership for unlawful detainer.
ARTICLE 484. There is co-ownership whenever the
ownership of an undivided thing or right belongs to Share of Co-Owners
different persons.

In default of contracts, or of special provisions, There is only one ownership in co-ownership.


co-ownership shall be governed by the provisions of this However, such ownership is shared with
Title.
multiple persons. The property is owned by two
or more persons and the property is
CONCEPT UNDIVIDED.

Whenever the ownership of an undivided thing None of the parties has a determined share of
or right belongs to different persons, and the the thing in common. Only a fractional,
thing or right is not physically undivided, then intangible right over the property.
co-ownership exists.
For example, in a parcel of land, when the
The relationship is fiduciary. ownership is already identified and clear, that
the 50 sq.m. belongs to A and the other 50 sq.m.
For example: There is a piece of land, and the belongs to B, there is NO MORE co-ownership.
ownership belongs to 3 siblings, and the piece
of land remains undivided. There is Atty: On the view on which one is better,
co-ownership. co-ownership or partitioned property?
- In co-ownership, as there is no
Q: Is co-ownership a juridical entity? subdivision of the property, there might
A: No. Therefore, the co-ownership itself cannot be disagreement in the future, because
initiate an action against any party. Since it is the property lines are not segregated;
not a juridical entity like a corporation, it cannot not properly identified.
sue in court. Since it cannot sue in court, the
co-owner can only litigate in court in their The share of co-owners in benefits and charges
personal capacities. shall be in proportion to their respective
interests. Other stipulations are VOID.
It does not have a separate juridical entity and
the creditors cannot attach the entire share of There is also a presumption that there is equal
the co-ownership. share in co-ownership, unless proven otherwise.

Q and A: For example, the co-owner can simply In unions without the benefit of marriage under
file a case for unlawful detainer against a Art. 147 of the Family Code, the other party
tenant without impleading the other who did not contribute is deemed to have
co-owners. Why? Because when the co-owner contributed JOINTLY and shall receive 50-50
files the case against another person, he is share.
acting in his representative capacity, and it is
presumed that since there is co-ownership, any

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The thing itself must be owned by the pirates through their actual joint contribution of
co-owners, because if there are different money, property, or industry, shall be owned by
owners of the House and Lot, for example, there them in common in proportion to their
is no co-ownership. (Javier v. Javier) respective contributions. In absence of proof,
- Since the lot is owned by another their contribution shall be presumed equal.
person, and the house upon it is owned (Art. 148)
by a different person, there is no
co-ownership If one of the parties is validly married to
another, his or her share in the co-ownership
Q: When will co-ownership arise? shall accrue to the absolute or conjugal
A: Co-ownership will arise if there are common partnership existing in such valid marriage. If
owners over a particular property; there is no the party who acted in bad faith is not validly
segregation yet. married to another, his or her share shall be
forfeited in the manner provided in the last
Q: How about the purpose of co-ownership? article.
Can it be changed or altered by the co-owners?
I.e, the property should be devoted to rice and 2. Implied Trust
corn, can you convert it into a commercial If two or more persons agree to purchase
establishment like SM? property and by common consent the legal title
A: Yes. It may be changed by agreement, is taken in the name of one of them for the
express or implied, of the parties. benefit of all, a trust is created by force of law in
favor of others in proportion to the interest of
Sources of Co-Ownership each. (Art. 1452)

1. Cohabitation In co-ownership, the relationship is fiduciary.


Art. 147, when a man and a woman who are Merong obligasyon ang bawat isa for the
capacitated to marry each other, live exclusively preservation of the property. Meron silang
with each other as husband and wife without oblgasyon sa kapwa nilang co-owner.
the benefit of marriage, or under a void
marriage, their wages and salaries shall be In Implied Trust:
owned by them in equal shares, and the Ex: Namatay magulang, yung iba nasa abroad,
property acquired by both of them by their nahihirapan mag pirma ng kung ano ano.
work or industry shall be governed by the rules Sasabihin ng mga nasa abroad, ate baka pwede
on co-ownership. sayo muna nakapangalan yung property,
pagkatapos ang magbebenefit lahat. Ang
In the absence of proof to the contrary, the problema, pag namatay si ate, hindi alam ng
properties acquired while they lived together mga asawa ang usapan ng original siblings.
shall be presumed to have been obtained by Pwedeng sabihin ni kuya, eh sa tatay ko yan e!
their joint effort and shall be owned equally. Bakit kayo paparte dito?

In cases of cohabitation NOT FALLING under A: Therefore, in accordance with the rule that it
147, only the properties acquired by both of the is for the benefit of all, you should try to cause

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the registration by making a claim or lien; you trespasser, he shall not be entitled to any share.
can prepare a trust agreement, then have it (Art. 438)
annotated on the back of the tile so that it will
serve as a notice to the world na kahit naka 7. Easement of Party Wall
register ang title sa pangalan ng isang co-owner, The easement of a party wall shall be governed
but at the back of the title there is a notice to by the provisions of this title, local ordinance,
the whole world that this property is covered by and customs insofar as they do not conflict with
implied trust. the same, and by the rules on co-ownership.

3. Succession; Intestate Q: Is co-ownership the same as partnership?


Where there are two or more heirs, the whole Distinguish partnership from co-ownership
estate of the decedent is, before the partition, A: No.
owned in common by such heirs, subject to the PARTNERSHIP (Art. CO-OWNERSHIP (Art.
payment of debts of the deceased. (Art. 1078) 1764) 484)

two or more persons for common


There is a presumption that the heirs are
bind themselves to enjoyment,
co-owners. contribute money, maintenance, and unity
property, or industry, to and preservation of the
4. Donation a common fund, with property
the intention of
When a donation is made to different persons
dividing profits
jointly, it is understood to be in equal shares
and there shall be no right of accretion among
When it comes to sources of ownership, there’s
them, unless the donor has otherwise provided.
really a difference between co-ownership &
(Art. 753)
partnership.
5. By Chance
Rights of its co-owner as to thing in common
By will of their owners, two things of the same
➔ Purpose of co-ownership:
or different kinds are mixed, or if the mixture
occurs by chance, and in the latter case the 1. For the preservation of the
things are not separable without injury, each thing. Preservation means to
owner shall acquire a right proportional to the use the property for the
part belonging to him, bearing in mind the value purpose for which it was
of the things mixed or confused. (Art. 472) intended. “Kung yan ay sa
farming, let’s use it for farming.
Kung yan ay sa fishing, fishing.”
6. Hidden Treasure
Hidden treasure belongs to the owner of the
Q: Can you change the purpose for which it
land, building, or other property on which it is
was intended?
found. When the discovery is made on the
A: Yes.
property of another or of the state or any of its
subdivision and by chance, One Half shall be
2. Share in the benefits in
allowed to the finder. If the finder is a
proportion to his interest

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provided the charges are borne expenses of preservation of the thing or right owned in
by it in proportion. common and to the taxes. Any one of the latter may
exempt himself from this obligation by renouncing so
much of his undivided interest as may be equivalent to
Q: Paano ang computation? his share of the expenses and taxes. No such waiver
A: In proportion to his interests shall be made if it is prejudicial to the co-ownership.

3. File an ejectment case. Isa lang Q: What is the purpose of co-ownership?


sa co-owners, pwede na A: For the preservation of the thing that
mag-file. No need for a power is owned in common. It is but proper &
of attorney, para mag file ng natural that as we go along, expenses
ejectment, to eject a tenant, for might be incurred. Not only expenses,
example. profits may also be incurred. The best
thing to do, of course, is to contribute
Q: for example, 10 ang co-owners, lahat ba sila something for the expenses for the
ay ipangalan as plaintiffs or as plaintiffs in the preservation of the thing.
case?
A: Based on what is provided for by law, Q: What are the taxes that should be paid?
no need. Kung 10 ang co-owners, kahit A:
isa pwede na. No need to ask for a - Real property tax (on a yearly
special power of attorney (SPA) because basis)
any one of the co-owners can file an
action for ejectment. Q: Pano ‘pag yung iba nasa abroad? Pano
gagawin sa real property tax?
ARTICLE 487. Any one of the co-owners may bring an A: The general rule is that, of course, if
action in ejectment. we will not pay taxes, there’s a chance
that kung lumaki na yung utang natin sa
Q: What’s covered by ejectment? property tax, the government might
A: foreclose or sell the property in public
- Forcible entry auction. It’s better to preserve the thing
- Accion publiciana and one way to preserve the thing is of
- Writ of possession course [to pay] taxes.
- Accion reivindicatoria
NOTE: favorite daw ni Dean ang ejectment &
4. Compel other co-owners to writ of possession in exams!
contribute to expenses, for the
preservation of thing and of 5. Oppose any act of alteration.
course to compel the payment Has the right to oppose any act
of taxes. of the majority which are
prejudicial to the minority. Or
ARTICLE 488. Each co-owner shall have a right to
once the property is foreclosed,
compel the other co-owners to contribute to the for example, just like filing a
separate action for ejectment

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Co-ownership
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— any one of them can exercise 6. Ask for partition. Any one of
legal redemption in order to the heirs can terminate the
save the property. co-ownership by exercising his
right to ask for partition. Kung
Q: Define “any act of alteration”? ayaw na niyang magkaron ng
A: Any deviation from the purpose for co-ownership, just try to
which the co-ownership was actually partition the property.
intended by the co-owners or co-heirs.
For instance, yung palaisdaan, sasabihin SLIDE: If the co-owners have agreed to lease the
nung ibang kapatid na galing abroad, property in common, a co-owner cannot retain
“eh alam mo, sa Amerika, hindi na uso yung it for his use without paying the proper rent.
palaisdaan. Kinoconvert. Gawin kaya nating Two conditions must be followed, even if he is
isang commercial area pagkatapos, lagyan the owner of the property, because if he will not
natin ng restaurant business, etc etc?” You pay, it is prejudicial to the interest of
can oppose any act of alteration. co-ownership if he will not pay his monthly
rentals.
Dun palang sa act of preservation, may power
ang bawat co-owner to save the property, Q: Kahit ba co-owner ako, kailangan akong
because the intention of redeeming the magbayad ng rent?
property is to maintain the entire property and A: Yes. Since the property is owned in
to preserve the property. common, hindi naman pwedeng hindi
ka magbayad ng something, for it would
Q: Why? be prejudicial to the interest of the
A: Kasi kapag na foreclose yung co-ownership if you will not pay.
property, sinanla nung isa, ang
presumption ay lahat kayo nakinabang. Q: Can the co-owners establish rules regarding
Pero yung isang salbaheng co-heir, after the usage of the property owned in common?
pakinabangan yung property, iniwan na A: Yes. Better to have ground rules
yung property sa mga kapatid; hindi na when it comes to co-ownership.
niya binayaran yung utang.
Q: For example, is it possible to restrict
Q: In that case, can you redeem the property? ownership of the thing owned in common by
A: Yes, by means of legal redemption. making an agreement? Kunyari sasabihin,
“hindi pwedeng i-mortgage yung property. Kung
Q: Why? imo-mortgage yung property, among the co-owners
A: ‘Pag hindi naredeem yung property, lang,” OR pwede bang magkaron sila ng
the property will be lost. The property agreement tapos i-annotate sa title na hindi
will now become the property of the pwedeng ibenta ng isang co-owner yung
bank. Of course, the bank will have an kanyang share, at kung ibebenta niya, dun din
acquired asset. sa kanyang co-owner?

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A: Yes, it’s allowed by law, PROVIDED 1. Necessary expenses


that it must not be contrary to law, 2. Luxurious expenses/pleasure expenses
customs, public order, and public policy. - not reimbursable
3. Useful expenses - also not covered
Q: What is the reason why you want to have
that kind of agreement? Q: What are useful expenses again?
A: to preserve the property, or to A: Those that increase the value of the
preserve co-ownership. property

Q: Sabi nga natin kanina, kasi kapag pinagbili PAG MERONG EXPENSES na ganito, the law says
mo yan sa ibang tao, for example, pwedeng that consent of all shall be required.
pumasok yung ibang tao sa property ninyo.
Halimbawa, naka enclosed yung property If ever magkakaron ng expenses for pure luxury,
ninyo, iniwan ng magulang ninyo sampu (10) dapat merong consent ang lahat ng owners.
kayo, 10 kayong magsasama sama diyan, yung
angkan natin. Pagkatapos yung isa, Pag file ng case sa ejectment, no need for the
nangangailangan ng pera, ang ginawa, sinanla consent ng iba. Pwedeng on his own, he can file
sa ibang tao, hindi nabayaran. Nabili ng a case.
stranger, dun sa compound, meron nang
matitirang ibang tao na hindi part ng angkan. EJECTMENT EXPENSES
So pwede ba maging agreement yun? CASE INCURRED
A: Yes, because the intention is to
preserve the co-ownership.
Consent of all
needed?
❌ ✔️
Consequence if it They cannot be
SHARING IN THE BENEFITS incurred without charged (the
the consent of the parties who did
other co-owners?
not consent)
ARTICLE 485. The share of the co-owners, in the
benefits as well as in the charges, shall be proportional
to their respective interests. Any stipulation in a Q: What is the remedy of a co-owner who does
contract to the contrary shall be void.
not want to contribute?
The portions belonging to the co-owners in the A: The law says that he may exempt
co-ownership shall be presumed equal, unless the
contrary is proved.
himself. Pwede naman niyang i-exempt
yung sarili niya.

The law says that the share of the co-owners in


Q: Is there an implication?
the benefits (yung kinita, yung benepisyo, pati
A: Yes. By renouncing so much of his
na yung charges, expenses) shall be in
undivided interest that may be the
proportion to their respective interests.
equivalent of his share of the expenses
for preservation and taxes. Only for
TAXES & EXPENSES
preservation and taxes.
Q: What are the expenses that can be
reimbursed?
REPAIRS FOR PRESERVATION

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ALL the co-owners.


Q: How about repairs? UNANIMOUS CONSENT.
A: Repairs may be made at the will of - EXPENSES TO IMPROVE: shall
the co-owners, BUT he must first notify be decided by the majority.
the other co-owners.
ALTERATIONS/UNANIMOUS CONSENT
ARTICLE 489. Repairs for preservation may be made at
the will of one of the co-owners, but he must, if
ARTICLE 491. None of the co-owners shall, without the
practicable, first notify his co-owners of the necessity
consent of the others, make alterations in the thing
for such repairs. Expenses to improve or embellish the
owned in common, even though benefits for all would
thing shall be decided upon by a majority as determined
result therefrom. However, if the withholding of the
in article 492.
consent by one or more of the co-owners is clearly
prejudicial to the common interest, the courts may
afford adequate relief.
Q: What about expenses to improve?
A: The co-ownership, the property
owned in common shall be decided by No alterations shall be done/made without the
majority. unanimous consent, even if it’s beneficial to the
thing owned in common.
Q: What is the number of votes needed by the
co-owner? For example:
A: ● converting rice land to fishpond
● converting a house to a condominium

ARTICLE 492. For the administration and better


enjoyment of the thing owned in common, the Q: If withholding of the consent shall be
resolutions of the majority of the co-owners shall be prejudicial, meron bang rule kung hindi
binding.
makuha yung unanimous consent?
There shall be no majority unless the resolution is A: Let the court decide.
approved by the co-owners who represent the
controlling interest in the object of the co-ownership.
RIGHT WITH RESPECT TO HIS IDEAL SHARE
Should there be no majority, or should the resolution of ARTICLE 493. Each co-owner shall have the full ownership of
the majority be seriously prejudicial to those interested his part and of the fruits and benefits pertaining thereto, and
in the property owned in common, the court, at the he may therefore alienate, assign or mortgage it, and even
instance of an interested party, shall order such substitute another person in its enjoyment, except when
measures as it may deem proper, including the personal rights are involved. But the effect of the alienation or
appointment of an administrator. the mortgage, with respect to the co-owners, shall be limited
to the portion which may be allotted to him in the division
upon the termination of the co-ownership.
Whenever a part of the thing belongs exclusively to one
of the co-owners, and the remainder is owned in
common, the preceding provisions shall apply only to
the part owned in common.
He may exempt himself from necessary
expenses & taxes by renouncing part of his
interest in co-ownership.
- REPAIRS: no, notification lang
needed (? not sure)
ARTICLE 494. No co-owner shall be obliged to remain in
- ALTERATION OF THE PURPOSE:
the co-ownership. Each co-owner may demand at any
must be the consent/decision of time the partition of the thing owned in common,

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insofar as his share is concerned. XPN: if there’s repudiation of his share


over the property.
Nevertheless, an agreement to keep the thing undivided
for a certain period of time, not exceeding ten years,
shall be valid. This term may be extended by a new ARTICLE 495. Notwithstanding the provisions of the
agreement. preceding article, the co-owners cannot demand a
physical division of the thing owned in common, when
A donor or testator may prohibit partition for a period to do so would render it unserviceable for the use for
which shall not exceed twenty years. which it is intended. But the co-ownership may be
terminated in accordance with article 498.
Neither shall there be any partition when it is
prohibited by law.
Q: When is partition not allowed?
No prescription shall run in favor of a co-owner or
co-heir against his co-owners or co-heirs so long as he A:
expressly or impliedly recognizes the co-ownership. 1. If there is an agreement for a
period not exceeding 10 years.
If a co-owner sells the entire common property, 2. Partition is prohibited by the
the sale is valid only insofar as his share is donor or testator for a period
concerned. In that case, the stranger will have not exceeding 20 years.
the right to represent in the partitions since the 3. Partition is prohibited by law
original co-owner has ceased to be co-owner. like conjugal, except in certain
instances
Q: A co-owner sold the entire land to another. 4. Partition will render the
Can the other co-owners demand for the property unserviceable
annulment for the entire lot? 5. When the legal nature of the
A: Yes, insofar as the ¾ is concerned. common property does not
The sale of ¼ is valid, according to the allow partition.
case of Mainit v. Bandoy.
Q: What happens if the property would or
Q: Why can’t a co-owner cannot acquire becomes unserviceable?
property by prescription? A: The co-ownership may be
A: terminated. Art. 498 provides that it
shall be sold & the proceeds shall be
Q: Pwede bang magkaron ng prescription sa distributed [among the co-heirs].
co-ownership?
A: No. You’re only a trustee. Trustee for PARTITION
others. Except of course if there is Q: How would we document partition if the
repudiation of his share over the co-owners would like to have the property
property. partitioned?
A: can be through a document or
GR: trustee ka lang; tagapag-ingat ka sample document.
lang nung property that is owned by
common. ‼️NOTE: CHECK WHAT A DEED OF PARTITION IS
BAKA LUMABAS SA EXAM!!!! HAHAHA

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Partition shall be made by the agreement of the Q: Paano mo kaya ibebenta yung property na
parties. Can be oral or in writing, but it’s better hindi naman napa-partition? What are you
if you put the deed of partition in writing. going to state in the deed of sale on the
property that is not yet partitioned by the
Q: Is the statute of frauds applicable? heirs?
A: No, since partition is not a A: pwede ilagay, undivided portion that
conveyance of property, but only a is owned ?? HAHDJASHD Unidentified
matter of segregation of property. It’s and undetermined portion would be
not a conveyance because the enough if that will appear in a
co-owners are merely trying to specify document.
the metes and bounds of the property
lines. The co-owners are only trying to ILLUSTRATION: kung ang bawat isa ay
establish “ano ba ang sa’yo at alin ang magkakaron ng 1000sqm, pwedeng magkaron
akin, para lagyan natin ng pader, end the ng deed of sale over undivided parcel of land.
co-ownership & lets have a partition” Ano yung binili mo dun?

ARTICLE 496. Partition may be made by agreement Q: What is the effect of partition?
between the parties or by judicial proceedings. Partition A: Under Art. 1091, a partition legally
shall be governed by the Rules of Court insofar as they
are consistent with this Code. made confers each heir the exclusive
ownership of the property adjudicated
to him.
Q: In cases of disagreement, meron bang
solution?
Since nahiwalay na from the other
A: Yes. The court will determine if the
co-owners, he can now enjoy exclusive
heirs cannot agree on the matter of
ownership of the property that was
partition. There will be what we call
adjudicated to him.
judicial proceedings under the Rules of
Court.
Art. 543 provides that each of the
participants of a thing possessed in common
Q: Merong mga situations na meron mga
shall be deemed to have exclusively
utang. In this case, can creditors/assignees possessed the part which may be allotted to
intervene in the partition? him.
A: Yes. If the property was fully assigned
to him by the assignors since he has no Art. 1092 provides that after partition,
more interest to protect. the co-heirs shall be reciprocally bond to
warrant title to and quality of each property
ILLUSTRATION: Doon sa nagbenta ng property, adjudicated.
only with respect to ideal share, since hindi pa
naman nap-parte yung lupa, hindi pa naman Art. 499 provides that partition shall not
alam kung ano yung binili mo diyan. prejudice third persons who shall retain
rights of mortgage, servitude, etc.

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Q: How about assignees or creditors under this expenses, or those alterations


particular instance? or expenses that was approved
A: The assignees or creditors cannot by the co-owners)
assail the partition already executed, 3. PAY DAMAGES for damages
UNLESS there is fraud and made despite caused by reason of negligence
formal opposition. So wala silang and liable for defects of title or
pakialam unless merong fraud na quality of the portion assigned
nangyari. to which all other of the
co-owners ??
ARTICLE 497. The creditors or assignees of the
co-owners may take part in the division of the thing EXTINGUISHMENT OF CO-OWNERSHIP
owned in common and object to its being effected
Q: How can co-ownership be extinguished?
without their concurrence. But they cannot impugn any
partition already executed, unless there has been fraud, A:
or in case it was made notwithstanding a formal 1. CONSOLIDATION [of ownership
opposition presented to prevent it, without prejudice to
the right of the debtor or assignor to maintain its into one] in one of the
validity. co-owners of all the shares (e.g.
ibinenta nung isang co-heir sa kanyang
ate; ibinenta yung share niya sa
Q: Suppose I will take this piece of land. Pano
kapatid niyang panganay. Wala na
yung assignee? Can they assail the partition siyang share)
that was already executed? 2. DESTRUCTION of the thing or
A: No, he cannot. Because it was
loss of the right
already made and done, UNLESS there
3. PRESCRIPTION in favor of third
is fraud and there is a demand on the
persons
part of the assignee regarding the
4. REPUDIATION in terms of
manner of partition.
trustees
5. TERMINATION of the period of
Q: Ano yung mga dapat pa ayusin after
10 years or another 20 years by
partition?
the testator
A:
6. PARTITION, dahil sa partition
wala nang pakialam EXCEPT for
ARTICLE 500. Upon partition, there shall be a mutual expenses, reimbursement of
accounting for benefits received and reimbursements
for expenses made. Likewise, each co-owner shall pay expenses or distribution of
for damages caused by reason of his negligence or profits.
fraud.

RULE 69, RULES OF COURT: PARTITION


1. MUTUAL ACCOUNTING for Q: What happens in Rule 69?
benefits received. Dahil nag A: Sec. 1 provides that it must contain:
earn ng profit, let’s account it, a. Nature and extent of title
then we distribute the share. b. Description of the property
2. EXPENSES na nagamit for it to
be reimbursed (e.g. necessary

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c. All other interested in the take it. Provided, he pays the value of
property should be impleaded the land. UNLESS one of the parties
as defendants interested as that the property to be
sold instead of being so assigned, in
Then there will be order of partition; which case the court shall order the
hearing, then the court will decide. commissioners to sell the real property
at public sale under Art. 498, CC.
Once the court has determined that the
plaintiff has the right, the property shall Q: is the agreement to subdivide the property
be ordered partition. enough?
A: no. there must be a subdivision plan
Parties may agree to the partition and co-owners must occupy their respective
among themselves and the court shall portions. Dapat meron ding project of partition.
confirm it and have it recorded with the
Registry of Deeds. Q: What happens if the parties still don’t
agree?
Q: Once the case (partition) is filed in court, A: refer the matter in court. Let the
does it mean that the co-owners cannot decide court decide. This is sanctioned under Rule 69
among themselves? of the Rules of Court.
A: No. They can still decide how
partition shall be done.

Q: What if there’s a project of partition or


partition by virtue of the agreement between
the parties?
A: The court will simply confirm the
project of partition and the surveyor
shall be assigned, thus a separate title
will be issued to that effect. Register in
the Registry of Deeds (RD)

Q: What if there’s no agreement?


A: The court shall appoint
commissioners (3 competent and
disinterested persons) to make the
partition and this is sanctioned by Sec.
3, Rule 69, RoC.

If the commissioner finds the division


cannot be made without prejudicing the
other parties, the court may order it be
assigned to one of the parties willing to

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