WHAT IS CO-

OWNERSHIP?

ARTICLE 484-501
 CO-OWNERSHIP

Is that form of ownership which exists whenever an

undivided thing or right belongs to different persons (Art.
484).
The right of common dominion which two or more persons
have in a spiritual part of a thing, not materially or
physically-divided. (Sanchez Roman)
The “manifestation of the private right of ownership, which
instead of being exercised by the owner in an exclusive
manner over the things subject to it, is exercised by two or
more owners and the undivided thing or right to which it
refers to one and the same.’’ (Manresa)
 Characteristics of Co-ownership

1. Plurality of subjects/owners;
2. There is a single object which is not materially divided;
3. There is no mutual representation by the co–owners;
4. It exists for the common enjoyment of the co–owners;
5. It has no distinct legal personality;
6. It is governed first of all by the contract of the parties;
otherwise, by special legal provisions; and in default of
such provisions, by the provisions of Title III on co–
ownership.
 Requisites of Co-ownership:

1. Plurality of owners;
2. The object of ownership must be a thing or right
which is undivided;
3. Each co–owner’s right must be limited only to his
ideal share of the physical whole.
 Sources of Co-ownership

1. By law;
2. By contract ;
3. By chance;
4. By occupation or occupancy;
5. By succession or will
Rights of each co–owner as to
the thing owned in common
1. To share in the benefits and charges in proportion
to the interest of each (Art. 485)

The share of each co-owner in the co-ownership is that

provided for in the law . (e.g Hidden Treasure)
If the source of co-ownership is contract, the share of the
co-owner may depend on their agreement (e.g A, B, and
C bought a land worth Php100,000.00. They may agree
in any manner as to how much each shall contribute.)
In default thereof, it is presumed equal in the absence of
proof to contrary.
Any stipulation to the contrary is void because it is
contrary to the essence of co-ownership;
 2. To use the thing owned in common (Art.
486)

Limitations:
 Use according to the purpose for which it was intended.
 Interest of the co–ownership must not be prejudiced.
 Other co–owners must not be prevented from using it
according to their own rights.
 3. To defend the co–ownership’s interest in court
(Article 487)

Actions Covered by the Term ‘Ejectment’

 (a) forcible entry;
 (b) unlawful detainer;
 (c) accion publiciana;
 (d) accion reivindicatoria;
 (e) quieting of title;
 (f) replevin
An action for ejectment must be instituted for all;
Available even against a co-owner
 4. Repairs and taxes

Right to demand contribution

 To compel the others to share in the expenses of preservation even if incurred without
prior notice.
 The co–owner being compelled, may exempt himself from the payment of taxes and
expenses by renouncing his share equivalent to such taxes and expenses (Art. 488). The
value of the property at the time of the renunciation will be the basis of the portion to be
renounced.
 A, B, and C (shares are equal) are co-owners of a car valued at Php 300,000.00. Assuming
that A had the car repaired for the purpose of preserving it and incurred the sum of Php
30,000.00 in the process. B and C is required to contribute Php 10,000.00 each to the
expenses A had incurred.
 If “B” does not want to shell out Php 10,000.00 and opts, instead to renounce so much of his
interest as may be equal to his share of the expenses, he is required to renounce 1/10 of his
share in favor of the co-owner who incurred the exepenses.
Repairs for preservation may be made at will of one of the co-owners, but
he must, if practicable, first notify his co-owners of the necessity for such
repairs (Art. 489).
  

5. To oppose alterations made without the consent of all, even if beneficial (Art. 491)

Alteration
 An act by virtue of which a co–owner changes the thing from the
state in which the others believe it should remain, or withdraws it
from the use to which they desire it to be intended.
 It is not limited to material or physical changes.
 The co-owner who makes alteration without the express or
implied consent of the other co-owners acts in bad faith because
he does so as if he were the sole owner. As just punishment for his
conduct, he should lose what he has spent; be obliged to demolish
the improvements done; and be liable to pay for losses and
damages the community property or the other co-owners may
have suffered. BUT whatever benefits the co-ownership derives
will belong to it.
 Illustration

R, S and T are co-owners of a ten-hectare

agricultural land in Quezon City. R is the
administrator. S and T are in Spain. May R convert
that land to a memorial park without the knowledge
and consent of S and T? Explain.
No, for clearly this conversion constitutes an
ALTERATION which by law requires UNANIMITY
on the part of all the co-owners unless a judicial
order to the contrary is obtained.
 7. To protest against seriously prejudicial decisions of the
majority.

 
 8. Legal redemption

There must be a co-ownership;

One of the co-owners sold his right to a stranger;
The sale was made before the partition of the co-
owned property;
The right of redemption must be exercised by one or
more co-owners within a period of 30 days to be
counted from the time that he or they were notified in
writing by the vendee or by the co-owner vendor; and
The vendee must be reimbursed for the price of the
sale.
 9. To demand partition at any time

General Rule: Partition is demandable by any of the co–owners

as a matter of right at any time (Art. 494).
Exceptions: (SCLUPA)
1. When there is a stipulation against it; but not to exceed 10 years
(Art. 494).
2. When the condition of indivision is imposed by the donor or
testator; but not to exceed 20 years (Art. 494).
3. When the legal nature of the community prevents partition.
4. When partition would render the thing unserviceable (Art. 495).
5. When partition is prohibited by law (Art. 494).
6. When another co–owner has possessed the property as exclusive
owner for a period sufficient to acquire it by prescription.
 PERPENDICULAR OWNERSHIP (Art. 490)

One where the different stories of a building belong to

different persons, as distinguished from an ordinary
case of co-ownership where all the floors and
everything else belong to all co-owners.
This is still co-ownership for there is some unity in the
use or ornamentation of the property, particularly in
the main and common walls, roof, stairs, etc.
[NOTE: The rules enumerated in the Article apply
only if there is no contrary provision in the titles of
ownership or agreement.]
 Rules in the ABSENCE of contrary provision in the titles of ownership
or agreement

1. Proportionate contribution is required for the preservation of:

 The main walls;
 The party walls; and
 The roof; and
 Other things used in common.
2. Each floor owner must bear the expenses of his floor.
3. Expenses of all owners pro rata:
 The floor of the entrance;

 The front door;

 The common yard;

 Sanitary works common to all; and

 Stairs from the entrance to the first story.

4. Stairs are to be maintained from story to story, by the users.

 Number of Co-owners Who Must Consent

(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 (not
numerical). (Art. 492 and Art. 489)
 Repairs for preservation

Art. 489. Repairs for preservation may be made at

the will of one of the co-owners, but he must, if
practicable, first notify his co-owners of the necessity
for such repairs. Expenses to improve or embellish
the thing shall be decided upon by a majority as
determined in Article 492.
 Alterations or acts of OWNERSHIP

Art. 491. None of the co-owners shall, without the

consent of the others, make alterations in the thing
owned in common, even though benefits for all
would result therefrom. However, if the withholding
of the consent by one or more of the co-owners is
clearly prejudicial to the common interest, the courts
may afford adequate relief.
Unanimous Consent (Express or Implied)
 Effects of an Illegal Alteration

(a) The co-owner responsible may lose what he has

spent;
(b) Demolition can be compelled;
(c) He would be liable for losses and damages;
(d) BUT whatever benefits the co-ownership derives will
belong to it (3 Manresa 468, 471-472);
(e) In case a house is constructed on common lot, all the
co-owners will be entitled to a proportionate share of the
rent. (It is wrong to give all to the person who made the
alteration and just let her pay rent on the land). (Singson,
et al. v. Ch. Veloso, et al., [CA] 52 O.G. 370)
Article 492 (Administration and Better Enjoyment)

 Acts of Administration or Management

They are those:
1. that do not involve an alteration;
2. those that may be renewed from time to time;
3. those that have transitory effects, that is, do not bind the co
ownership for a long time in the future;
4. those that do not give rise to a real right over the thing owned
in common;
5. those, which even if called an alteration, do not affect the
substance or nature of the thing (2 Castan 200-203);
6. those for the common benefit of all the co-owners and not for
only one or some of them. (Singson v. Veloso, supra).
No majority or act of majority is seriously prejudicial

The following acts of the majority are considered prejudicial

to the co-ownership:
1. When the resolution calls for a substantial change or alteration of the
common property or for the use to which it has been dedicated by
agreement or by its nature;
2. When the resolution goes beyond the limit of mere administration or
invades proprietary rights of the co-owners un violation of Article 491;
3. When the majority authorizes lease, loans or other contracts without
security, exposing the thing to serious danger to the prejudice of the
other co-owners; and
4. When the majority refuses to dismiss an administrator who is guilty of
fraud or negligent in his management, or he does not have the
respectability, aptitude, and solvency required of persons holding such
positions.
 Limitations:

There should first be a notice to the minority so that they can be

heard;
The majority would be justified in proceeding only when the
urgency of the case and the difficulty of meeting with them render
impracticable the giving of such notice;
The minority may APPEAL to the court against the decision of the
majority when, for example —
 1) there is no real majority (Art. 492);
 2) the resolution is seriously prejudicial to the rights of an individual co-owner
(Art. 492);
 3) when the majority refuses to correct abuse of administration or
maladministration;
 4) when the minority is made the victim of fraud (Manresa);
 5) when an alteration (instead of mere act of administration) is agreed upon.
 Rights as to the ideal share of each co–owner (Art.
493)

1. Each has full ownership of his pro-indiviso part and of his

share of the fruits and benefits;
2. Right to alienate, assign, or mortgage, dispose or encumber.
3. Right to substitute another person in its enjoyment, EXCEPT
when personal rights are involved or for the purpose of
giving the thing a different use from that agreed upon.
“Personal rights” – used in its real meaning and not in its legal or
technical sense; it is the right which cannot be transferred because it
affects the personal relations of the co-owners with one another.
4. This right is without prejudice to the exercise by the others of
the right of legal redemption under Art. 1620.
 SALE OF THE ENTIRE PROPERTY

When a co-owner sells the whole property as his, the sale affects
only the seller’s share pro indiviso and the transferee gets only
what corresponds to his grantor’s share in the partition of the
property owned in common. Since a co-owner is entitled to sell
his undivided share, a sale of the entire property by one co-
owner without the consent of the other co-owners is not null
and void; only the rights of the co-owners/seller are transferred,
thereby making the buyer a co-owner of the property (Oesmer
vs. Paraiso Dev’t Corp., G.R. No. 157493, February 5, 2007).
In such cases, the remedy is to ask for partition, not to ask for
the nullity of the sale (Aguirre, et. al vs. CA, et al., GR No.
122249, January 29, 2004).
 Right of a co-owner to demand partition
(Art.494)

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, in so far
as his share is concerned.
 Exceptions:

1. An agreement to keep the thing undivided for a

period not exceeding 10 years;
2. A donor or testator may prohibit partition for a
period not exceeding 20 years;
3. When prohibited by law;
4. When physical partition renders the property
unserviceable;
5. When the legal nature of the thing does not allow
partition.
 PARTITION

The division between two or more persons of real or

personal property which they own in common so
that each may enjoy and possess his sole estate to the
exclusion of and without interference from the
others (Avila vs. Sps. Barabat GR No. 141993,
March 17, 2006).
Partition is governed primarily by the Civil Code and
suppletorily by the pertinent provisions of the Rules
of Court (Rule 69).
 PRESCRIPTION

General Rule: Under Art. 494, prescription does not run in favor of or against a
co-owner or co-heir.
 Reason: Possession of the co-owner or co-heir is ordinarily not adverse to the others, but, in fact,
beneficial to all of them. The possession of a co-owner is similar to that of a trustee.
Exception: Where a co-owner or co-heir repudiates the co-ownership or co-
heirship, prescription begins to run from the time of repudiation, subject to the
concurrence of following conditions:
 The co-owner has performed unequivocal acts of repudiation amounting to an ouster of the other
co-owners;
 Such positive acts of repudiation have been made known to the other co-owners;
 The evidence thereof is clear and convincing; and
 His possession is open, continuous, exclusive, and notorious (Robles vs. CA, GR No. 123509,
March 14, 2000).
Note: A co-owner cannot, without the conformity of the other co-owners or a
judicial decree pursuant to Rule 69 of the Rules of Court, adjudicate to himself in
fee simple a determinate portion of the lot owned in common, to the exclusion of
other co-owners (Del Blanco v. IAC, G.R. No. L-66520, August 30, 1988).
Rights/Participation of creditors and assignees of the
co-owners in the partition (Art. 497)

Scope of creditors or assignees

 Creditors includes all kinds of creditors provided they became so during the existence of the
co-ownership
 Assignees are transferees of interests of one or more of the co-owners
Right of notice of partition 
 While the law does not expressly require previous notice of the proposed partition be
given to the creditors and assignees, since they are granted the right to participate, they
have also the right to be notified thereof, such that in the absence of such notice, the
partition will not be binding on them (De Santos v. BPI, G.R. No. L-44605, July 30,
1938).
Right to object to or impugn
 If no notice is given, the creditors or assignees may question the partition already made
 HOWEVER, they cannot impugn any partition already executed, unless:
 There has been FRAUD; or
 The partition was made notwithstanding a formal opposition presented to prevent it.
 Partition in case co-owners cannot agree/Legal Partition (Art.
498)

Whenever the thing is essentially indivisible

and the co-owners cannot agree:
 Firstly, the property may be allotted to one of the co-owners,
who shall indemnify the other
 Otherwise, it shall be sold, and the proceeds distributed.
Protection on the rights of third persons (Art. 499)

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.
Personal rights pertaining to them against the co-
ownership shall also remain in force,
notwithstanding the partition.
 Effects of Partition (Arts. 500 and 501)

1. Mutual accounting for the benefits received;

2. Mutual reimbursements for expenses (i.e.,
necessary expenses, taxes, and others in proper
cases);
3. Indemnity for damages caused in case of
negligence or fraud;
4. Reciprocal warranty for defects of title or quality of
the portion assigned to a co-owner.
 EXTINGUISHMENT OF CO-OWNERSHIP

1. Consolidation or merger in one co–owner;

2. Acquisitive prescription in favor of a third person
or a co–owner who repudiates the co–ownership;
3. Loss or destruction of property co–owned;
4. Sale of property co–owned;
5. Termination of period agreed upon by the co–
owners;
6. Expropriation;
7. Judicial or extra–judicial partition.
The Condominium Act
(RA 4726)
 Definition of Condominium

Section 2. A condominium is an interest in real property

consisting of separate interest in a unit in a residential,
industrial or commercial building and an undivided interest in
common, directly or indirectly, in the land on which it is located
and in other common areas of the building. A condominium
may include, in addition, a separate interest in other portions of
such real property. Title to the common areas, including the
land, or the appurtenant interests in such areas, may be held by a
corporation specially formed for the purpose (hereinafter known
as the "condominium corporation") in which the holders of
separate interest shall automatically be members or
shareholders, to the exclusion of others, in proportion to the
appurtenant interest of their respective units in the common areas.
 When is ownership acquired?

The buyer of a unit in a condominium acquires

ownership over the unit only after he has paid in full
its purchase price. (Condominium Corporation v.
Campos, Jr. 104 SCRA 295)