Property: Title III

(coownership)
BASED MOSTLY FROM ARTURO TOLENTINO, WITH ADDENDUM FROM DE LEON
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Societas Spectra Legis

UNIVERSITY OF SAN CARLOS | COLLEGE OF LAW AND GOVERNANCE

exercised by two or more owners and

Co-ownership (Title III) the undivided thing or right to
which it refers is one and the same
(Manresa 401)
Friday, July 28, 2017
9:53 PM
Characteristics:
Article 484. There is co-ownership whenever the ownership of an
undivided thing or right belongs to a different persons. Plurality of Subjects
Unity of or material indivision
In default of contracts, or special provisions, co-ownership shall be The recognition of ideal shares
governed by the provisions of this Title.
Causes of Co-ownership
Co-ownership (is a form of Trust [Tolentino]) Law - as in party walls, fences, and
the right of common dominion which two or more hedges, and in the legal conjugal
persons have in a spiritual part of a thing, not materially partnership.
or physically divided (Sanchez Roman 162) Contracts - when parties agree to
purchase a piece of land.
Manifestation of the private right of ownership, Succession - when a person dies
which instead of being exercised by the owner in an intestate, leaving his proerties undivided
exclusive manner over the things subject to it, is to several heirs.

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Fortuitous Event or chance - when in cases of In co-ownership, each co-owner is
commixtion and confusion caused by accident or the owner of the whole undivided
chance, and hidden treasure discovered by stranger thing or right but at the same time
on the land of another of his own ideal part thereof.
Occupancy - when two persons catch a wild beast or Distinguished from Partnerships
gather forest products.
Donation inter vivos or Testamentary disposition -
when testator or donor prohibits partition for a
period of time.

Distinguished from Joint Ownership or Tenancy Creation:

Partnerships, are created only by
Ownership of Share: agreement or contract.
In Tenancy, upon death of a joint owner the surviving joint Co-ownerships, may arise from
owners are subrogated in his rights; his death extinguishes other causes aside from contracts.
his co-ownership; surviving joint owner acquires the whole Purpose:
property.
Partnerships, usually to obtain
In co-ownership, heirs of the deceased co-owner inherit his profit.
share in the property owned in common.
Co-ownership, is merely collective
Disposition of Share: enjoyment and for preservation of
In Tenancy, joint owner cannot do without the the thing owned.
consent of the other joint owner. Personality:
In co-ownership, can dispose of his undivided Partnerships, there is a juridical
share freely. personality.
Legal disability: Co-ownerships, no such juridical
In Tenancy, minority (disability) inures to the personality exists.
benefit of other joint owners for the purpose Duration:
of prescription.
Partnerships, can be created with a
In co-ownership, minority (disability) of a stipulation for a period of more
coowner cannot be availed by the other co- than ten (10) years.
owners in prescription.
Co-ownerships, such stipulation is
Ownership of Share: void.
In Tenancy, there is no abstract share Representation:
ownership by the co-owners, the rights of the
Partnerships, mutual
joint tenants being inseparable.
representation by the partners.

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Co-ownerships, special authority would be The portions belonging to the co-owners in

needed for such representation. the coownership shall be presumed equal, unless the
Transfer: contrary is provided.
Partnerships, cannot transfer his right to third
persons without consent. Share of co-owner in benefits and charges:
Co-ownerships, there is freedom of disposition. Proportional to the respective interests of
Death/Disability: each. Hence, if one's interest in the co-
Partnerships, can be extinguished by the death ownership is 25%, his share in the
or incapacity of one of its members. benefits and charges is also 25%.
Co-ownerships, death or incapacity has no
effect. Effect of Accretion:
Distribution: Accretion becomes part of the property in
Partnerships, distribution of profits is subject co-ownership.
to stipulations.
Co-ownerships, by virtue of Article 485 of the CONTRACT:
New Civil Code. Contrary to Stipulation:
General Rule: Any stipulation in a
Distinguished from Easements: contract making the share in the
Co-ownership: benefits of charges disproportional
Each owner has a right of dominion over the to the respective interests of the
whole property and over his undivided share co-owners is void.
Right of ownership rests solely on each and
every co-owner over a single object. Exception: if the co-ownership is created
Easement: other than by a contract, the share of the
co-owners need not be proportionate to
There is precisely a limitation on the right of
their respective interests.
dominion
The right of dominion is in favor of one or
more persons and over two or more different
things.

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 contract to the contrary shall be void.
Article 486. Each co-owner may use the thing owned in
common, provided he does so in accordance with the
purpose for which it is intended and in such a way as
not to injure the interest of the coownership or
prevent the other co-owners from using it according to
their rights. The purpose of the co-ownership may be
changed by agreement , express or implied.

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Suit may proceed without impleading
Limitations of Rights: other co-owners.
To the purpose for which it is intended (Tolentino)
Determination should depend on the
agreement express or implied, should govern.
Absence of an agreement, then its nature should However, if the ruling is adverse it does
govern its purpose or what it is previously devoted to. not affect the other co-owners. If
Without prejudice to the interests of the co- favorable, however, then it inures to the
ownership benefit of other co-owners.
A co-owner cannot devote community If another co-owner, however, consents
property to his exclusive use to the prejudice then they are in the same boat as the
of the coownership. plaintiff. However, if the action is for the
Without preventing the other co-owners from making benefit of the plaintiff alone, such that he
use thereof according to their own rights. claims he is the sole owner, then it would
Co-owners may establish rules regarding their use. not prosper. (Also enunciated in the case
Absence of which, there should be just and equitable of: Adlawan v Adlawan, GR#
distribution of uses among coowners. 161916)
Right of enjoyment by each co-owner
Limited by a similar right by other coowners. Your Ejectment:
right ends when the right of Covers everything from forcible entry,
others begin. and unlawful detainer, the accion
publiciana, and the reivindicatory action
(accion reinvidicatoria).
Prescription:
Co-owner v Co-owner
Mere tolerance on the part of the co-owners Only effect is recognition of co-ownership
cannot legalize the change in the use of a thing since one cannot be excluded from
from that intended by the parties.
enjoyment of possession. (Also
Tolerance cannot be the basis of Prescription enunciated in the case of: De Guia v CA,
GR# 120864)
Recourse would be extra-judicial
partition, the action to demand
partition is imprescriptible and is
Article 487. Any one of the co-owners may bring an action in not subject to latches. (De Guia v
ejectment. CA, GR#
120864)

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Res Judicata Default:

General Rule: An adverse decision is not res judicata Only remedy is specific performance for
with respect to other co-owners who are not parties the defaulting co-owner.
to the action. Default should not be construed as
Exception: If it appears that the action was instituted implied renunciation of his co-
in their behalf. ownership, nor can it be a
compelling reason for renunciation
of coownership by the defaulting
co-owner.
Termination:
Renunciation:
When petitioner filed an action to compel the sale of
the property the court granted the petitioner, the Must be expressed and in writing, implied
coownership was deemed terminated, hence right to and tacit renunciation has no effect.
enjoy possession ceased. Must be freely given, duress cannot be
appreciated.
Article 488. Each co-owner shall have a right to compel the other If renunciation is made through dacion
coowners to contribute to the expenses of preservation of the en pago, then the value of the share must
thing or right owned in common and to the taxes. Any one of the be based at the time of renunciation.
latter may exempt himself from this obligation by renouncing so This also does not mean that renunciation
much of his undivided interest as may be equivalent to his share of should be for the entirety of his share, only the
the expenses and taxes. No such waiver shall be made if it is portion thereof needed to compensate for the
prejudicial to the coownership. necessary expenses for the preservation of the
property.
Necessary Expenses:
The article only refers to expenses necessary for its Consent:
preservation, all others are excluded. Their needs to be consent and acceptance
Preservation: include all those which, if not made, of the other co-owners, as they are the
would endanger the existence of the thing or reduce ones who should shoulder the debts of
its value or productivity. the defaulting co-owner and in lieu
thereof, take a percentage of the
Useful Expenses: defaulters share in the co-ownership.
Useful expenses are not included, even though it However, the said Article is not
increased the income of the co-ownership. very clear, I would however,
humbly surmise that it is needed
Exception is if the consent of all co-owners was
as consent is an integral part in
obtained for such expense.
a valid contract. This being in
No consent, no reimbursement.

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the form of dacion en pago. [my opinion] Opposition of other co-owners does not
As to Creditors: bar one of them from going through with
If the creditor (the one who paid in behalf of the the repairs, as he can recover from said
defaultee) is a co-owner, the acceptance of the co-owners the expenses incurred at a
renunciation is deemed as acceptance. later time.
However, if the creditor is a third party, Remember he need to demand at
implied consent is not valid. Need to be a later date, since no demand no
expressly consented to. delay and follows no default. Once
When Renunciation is invalid: the co-owner is at default then he
If the renunciation is prejudicial to the co-ownership. can apply Art. 488. We can also
Expressly disallowed by law. apply unjust enrichment here to
Ex: When building is in dire need of repair, otherwise require said co-owners to
it would collapse, renunciation of one of the co- reimburse said expenses. [My
owners is deemed prejudicial to the existence of the Opinion/Interpretation].
co-ownership. (The parties are co-owners of the If due to opposition and the repairs was
aforementioned building) not undertaken, and it results to
However, if by third party, then said renunciation deterioration or ruination of the property,
would not bear fruit, because the liability would not the co-owners can claim damages from
be erased by said renunciation. the opposed co-owners.

Article 489. Repairs for preservation may be made at the will of Failure to Notify:
one of the co-owners, but he must, if practicable, first notify his The article is silent on the matter, if the
co-owners of the necessity for such repairs. Expenses to improve co-owner, fails to notify the other co-
or embellish the thing shall be decided upon by a majority as owners of the repairs that he did in his
determined in article 492. own volition for the preservation of the
Property. The co-owner who made
the repair is:
Agreement:
Have to prove the necessity of such a
Consent is not an integral part, since it is for the
repair and the reasonableness of the
preservation of said property, wherein, the parties
expense incurred. Failure of such would
are his fellow co-owners.
absolve the other co-owners of
It is deemed impliedly that they gave their reimbursing him of his expenses.
consent, for without said repairs the thing they
Art. 488 is clear that it is only for
are co-owners off would be lost.
necessary expenses, hence, if it is
luxurious or excess thereof, the coowners
Opposition: is not obliged to reimburse

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the same. [My interpretation] withholding of the consent by one or more of the co-
owners is clearly prejudicial to the common interest,
Article 490. Whenever the different stories of a house belong to different the courts may afford adequate relief.
owners, if the titles of ownership do not specify the terms under which
they should contribute to the necessary expenses and there exists no Alteration:
agreement on the subject, the following rules shall be observed: An act by virtue of which a co-owner,
changes the thing from the state in which
(1) The main and party walls, the roof and the other things others believe it should remain, or
used in common, shall be preserved at the expense of all the withdraws it from the use to which they
owners desire it to be intended.
in proportion to the value of the story belonging to each; Not limited to material change, but
also change of usage.
(2) Each owner shall bear the cost of maintaining the floor It should also include those which limits
of his story; the floor of the entrance, front door, common yard and modifies the thing to the prejudice of
and sanitary works common to all, shall be maintained at the the co-ownership.
expense of all the owners pro rata;
Whose Consent is Needed:
(3) The stairs from the entrance to the first story shall be Consent of all co-owners should be
maintained at the expense of all the owners pro rata, with the required.
exception of the owner of the ground floor; the stairs from the first This is because alteration, partakes
to the second story shall be preserved at the expense of all, except of the exercise of ownership and
the owner of the ground floor and the owner of the first story; and not of administration.
so on successively. Therefore, the consent of all parties is
indispensable.
Condominiums:
They do not partake of a co-ownership as defined in Form of Consent:
the Civil Code. Consent must be either expressed or
Each unit are separate and distinct property implied.
However, the common areas which is for the A co-owner who is aware and does
enjoyment of all, partakes of co-ownership as defined not act is deemed to have given his
in the New Civil Code, or through a corporation. consent.
Hence, a condominium is partly a co-ownership and
partly individually owned. Liability:
A tacit consent of a co-owner, disallows
him to demolish such alteration. Also, he
Article 491. None of the co-owners shall, without the consent of is deemed excluded from the expenses
the others, make alterations in the thing owned in common, even incurred in the alteration.
though benefits for all would result therefrom. However, if the

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Even if said alteration benefits him, he cannot Whenever, a part of the thing belongs exclusively to one of
be made to pay for the same, being that his the coowners, and the remainder is owned in common, the
approval was only tacit. preceding provision shall apply only to the part owned in
If not all co-owners have consented either tacitly or common.
expressly, said alteration is illegal.
This is construed as bad faith, as he acted as a sole
owner and against the very spirit of coownership.
He cannot ask for reimbursement of his expenses,
and furthermore, may be required to demolish said
alteration with losses and damages. If however, it
benefited the co-ownership, the said benefits belongs
Scope:
to the co-ownership.
Administration and better enjoyment - partakes
acts or decisions for the common benefit of all
Acts of Ownership:
and not a selected few.
It should be understood that if said action is an act of
Even alterations which do not
ownership, it should have the unanimous consent of
affect the substance or form of the
all.
thing would fall under this article.
A majority vote is invalid and illegal.
Characteristics:
Enjoyment and preservation of the thing.
Article 492. For the administration and better enjoyment of the thing
Transitory effects.
owned in common, the resolutions of the majority of the co-owners shall
be binding.
Distinguish between Alteration and
There shall be no majority unless the resolution is approved by the Administration: (Tolentino)
coowners who represent the controlling interest in the object of the Administration is for enjoyment and is transitory
ownership. in character.
Necessary
Should there be no majority, or should the resolution of the majority be Alteration has more permanent result and
seriously prejudicial to those interested in the property owned in pertains to the substance and form of the thing.
common, the court at the instance of an interest party, shall order such Unnecessary
measures as it may deem proper, including the appointment of an
administrator. Leases of Immovable Property:
It requires special power if:
Lease is to recorded in the Registry
of Property; and

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Lease is more than one (1) year. assign or mortgage it, and even substitute another person in
The consent needed is unanimous, and not mere its enjoyment, except when personal rights are involved. But
majority. (only applies to leases, if it is not a lease the effect of the alienation or the mortgage, with respect to
then majority rule applies) 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.
Management of Property:
Majority of the co-owners may manage, or majority may
appoint one of them to manage. No co-owner can claim definite title to a portion
thereof.
Majorities decision are binding upon the
minority Each co-owner shall have a share in the entire
land or thing.
However, due notice and due process must be observe
Rights of a co-owner:
What is a Majority?
Right to dispose, albeit, his undivided interest.
To be construed as a majority in interest, and should not be
construed as a majority in number. Cannot dispose his undivided interest as
there is still no adjudication.
Majority in interest refers to each individual
share in the co-ownership. Rights acquired would only be to his
undivided share, even though he sells the
entire portion. The purchaser only has
Prejudicial Acts: claim to the shares that the particular co-
Are acts which seriously affects the co-ownership. owner is subject to.
This justifies judicial intervention or the need thereof.

Example of instances wherein, the minority may question the

Majority:
When there is alteration as to the thing or its purpose.
Where it is not a question of mere administration, but that
of ownership.
When majority oversteps its bounds (contract of loan, lease,
etc.)
When majority refuses to dismiss an administrator guilty of
fraud, deceit, etc.
When a resolution would cause great injury to the
coownership.

Article 493. Each co-owner shall have the full ownership of his part and of
the fruits and benefits pertaining thereto, and he may therefore alienate,

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Exception: When he has the approval of all By consolidation of one co-owner of all the
coowners, wherein, they have decided to give shares of his fellow co-owners.
him a specific location. Of which, he can The extinguishment of the thing/land.
dispose/alienate of said specific portion. By the partition of the thing/land to each co-
owner.
Limitations:
A co-owner cannot alienate or dispose a purely Partition:
personal right.
A co-owner has the perfect right to request a
A co-owner cannot change use of a particular thing
partition.
than that agreed upon by the co-ownership.
Partition is imprescriptible, and is not subject to
latches.
Extinguishment of Encumbrances:
Exceptions:
Anyone can extinguish a thing, because everything is
Agreement for the continuation of the
construed to be for the benefit of all.
coownership within the allowable period.
Perpetual co-ownership is void, as it is
against Public Policy.
Article 494. No co-owner shall be obliged to remain in the
Extension beyond allowed by law, would
coownership. Each co-owner may demand at any time the partition
result to it being void. However, it would
of the thing owned in common, insofar as his share is concerned.
only be as to respect of the period.
Imposed in the case of donation or testate
Nevertheless, an agreement to keep the thing undivided for a
succession.
certain period of time, not exceeding then years, shall be valid. This
term may be extended by a new agreement. By its very nature is indivisible.
Partition would render the thing as
A donor or testator may prohibit partition for a period which shall unserviceable.
not exceed twenty years. Exception to this particular exception:
May be terminated per. Art. 498
Neither shall there be any partition when it is prohibited by law.
Prescription:
No prescription shall run in favor of a co-owner or co-heir against It is known that the partition is
his co-owners or co-heirs so long as he expressly or impliedly imprescriptible, however, we should
recognizes the co-ownership. take note that ownership is not.
If one of the co-owner is in adverse possession
as owner, asserting sole and exclusive dominion,
for the required prescriptive period he can
Termination: acquire sole title against the other co-
heirs/owners.

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Two Elements: Partition by Agreement:
Repudiated the claims of others; and Oral
The co-owners was apprised of his claim of adverse Is a valid partition as the statute of fraud does
and exclusive ownership. not apply. It does not convey ownership but
If the two are complied with, the time for prescription merely segregation and partition thereof.
will start to run. Written
The evidence must be clear, complete, and conclusive.
Hence, questions of partition is imprescriptible, Partition of Real Estate:
however, questions of ownership is. Plaintiff is indeed the co-owner of the subject
property.
Adverse Possession: Clear showing of how the subject is to be
Performed unequivocal acts of repudiation amounting divided between the plaintiff and defendant.
to the ouster of the other co-owners. Must be governed by Rule 69 of the Rules of
Such repudiation has been made known to the other Court for the partition of the Real Property
coowners.
Evidence must be clear and convincing. As to Complaint and Parties:
Initiate a complaint
Nature and extent of Title and adequate
Article 495. Notwithstanding the provisions of the preceding article, description thereof.
the co-owners cannot demand a physical division of the thing Joining all co-owners and party in interest to the
owned in common, when to do so would render it unserviceable for aforementioned complaint.
the use for which it is intended. But the co-ownership may be Community character of subject property must
terminated in accordance with article 498. be proven, in case of adverse title.

Merely prevents material or physical division not Order of Partition:

partition. If the court shall find the complaint proper, an
order of partition shall be issued thereto.
Article 496. Partition may be made by agreement between the If parties can agree to the partition then the
parties or by judicial proceedings. Partition shall be governed by the court will honor such partition and would
Rules of Court insofar as they are consistent with this Code. require such to be annotated in the registrar of
deeds.
Partitions:
Division between two or more persons of real or Partition by Commissioners:
personal property which they own as co-partners, In cases wherein, the parties are unable to
effected by the by the setting apart of such interests so agree.
that they may enjoy and possess it severalty. The court will appoint commissioners.

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There shall be three disinterested and competent
commissioners. Creditors Included:
They will partition the said property and designate All creditors are covered. (If the law does not
their respective shares. distinguished, we should not distinguished)
Provided, however, that they became
Adjudication or Sale: creditors during co-ownership.
When such partition would result to great prejudice, Otherwise, they are deemed excluded.
the commissioners may assign one of the co-owners Assignees:
willing to take the said property. It means that it is part of the transferee in
Provided thereof that said co-owner pays for the price interest of the co-owner.
thereof. Because if the sale was total then
If there is an objection then they may require that said subrogation would have occurred.
property be sold in a public sale. It also includes assignees whom interest has not
been delivered.
Accounting: Only has personal right to and not
A co-owner may recover back rents and profits, ownership.
deprived from him.
Intervention of Creditors and Assignees:
Judgement and Effects: With Notice:
It must contain specifics as to the partitioned lots to Duty of the Creditors and Assignees to
each respective co-owners. intervene and make known their stand.
If sold then judgement would protect said purchaser Failure of which would estopped them from
from other parties of interest in the aforementioned questioning the division.
property, as the copy of judgement shall be annotated Without Notice:
in the title in the office of the Register of Deeds.
The partition is not binding upon them.
Paramount Rights:
Article 498. Whenever the thing is essentially indivisible and
The court shall respect an extrajudicial partition of
the coowners cannot agree that it be allotted to one of them
lands by the parties without having to recourse to
who shall indemnify the others, it shall be sold and its
court action.
proceeds distributed.
Article 497. The creditors or assignees of the co-owners may take
Judicial Dissolution:
part in the division of the thing owned in common and object to its
being effected without their concurrence. But they cannot impugn Although it has been said that physical division
any partition already executed, unless there has been fraud, or in is not plausible because of the nature of the
case it was made notwithstanding a formal opposition presented to thing, juridical dissolution however, is a valid
prevent it, without prejudice to the right of the debtor or assignor recourse.
to maintain its validity.

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It is done by adjudicating ownership to one of the
co-owner or by sale of the thing to a third
person.
Maybe done publicly or privately.

Article 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 third persons
against the co-ownership shall also remain in force, notwithstanding
the partition.

Third Persons:
All those that does not intervene in said action.

Article 500. Upon partition, there shall be a mutual accounting for

benefits received and reimbursements for expenses made. Likewise,
each co-owner shall pay for damages caused by reason of his
negligence or fraud.

Article 501. Every co-owner shall, after partition, be liable for

defects of title and quality of the portion assigned to each of the
other coowners.

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