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PROPERTY REVIEWER

Part 6 You will only know what portion


belongs to you once there is a
CO-OWNERSHIP partition
This applies to both immovables
A. Definition and movables.

CO-OWNERSHIPright to common Labnotes


dominion which two or more persons Q: Is there an intangible movable?
have in a spiritual part (or ideal portion) A: YES. These are property represented
or a thing which is not materially or by shares of stock, credits, etc. (ex in
physically divided. Art 417: 1) obligations and actions
The manifestation of the private whose objects are movables or
right of ownership, which instead of demandable sums and 2) shares of
being exercised by the owner in an stock or agricultural, commercial and
exclusive manner over the things industrial entities)
subject to it, is exercised by two or
more owners and the undivided thing Q: Is there an intangible immovable?
or right to which it refers to is one A: YES. These are referred to in #10,
and the same. Art 415. Contracts for public works
It is not a real right distinct from and servitudes and other real rights
ownership but is a mere form or are immovable property. These can
manifestation of ownership. be subject to co-ownership.
Relationship of co-owners and he
may not do an act prejudicial to the (3) Each co-owner has absolute control
interest of his co-owners. over his ideal share, not over specific
The legal effect of an agreement portions of the property
to preserve the property in co-
ownership was to create an express Case
trust among the heirs as co-owners Gatchalian v. CIR
of the properties.
Facts
Fifteen individuals made
Art. 484. There is co-ownership contributions to purchase a sweepstakes
whenever the ownership of an undivided ticket registered in the name of Jose
thing or right belongs to different Gatchalian and Co. The ticket won third
persons. In default of contracts, or of prize. Gatchalian was then required to
special provisions, co-ownership shall be file the corresponding income tax return
governed by the provisions of this Title. covering the prize. They failed to pay.
CIR issued a warrant of distraint and
B. Characteristics of Co- levy, to avoid embarrassment the 15
paid under protest. This happened a
ownership second time for the balance. The 15
then demanded refund of the money
(1) plurality of owners, but only one real paid under protest. CFI refused.
right of ownership
(2) the recognition of ideal shares or Held
aliquot portions, defined but not If the plaintiff formed a partnership,
physically identified they are liable for the payment of
income tax; whereas if there was merely
a community of property, they are

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exempt from such payment. According owned in common by all the co-owners.
the facts, the plaintiffs organized a It cannot be validly claimed that the
partnership of a civil nature because house constructed was built on land
each of them put up money to buy a belonging to her, and 158 cannot apply.
sweepstakes ticket for the sole purpose Necessarily, the claim of conversion of
of dividing equally the prize which they the wifes share from paraphernal to
may win, as they did. Having organized conjugal must be rejected.
and constituted a partnership of a civil
nature, the said entity is then bound to Labnotes
pay the income tax. There is no merit Q: What may be the subject matter of
the plaintiffs contention that the tax co-ownership?
should be proprated among them and A: All things or property (including
paid individually, resulting in their property rights) whether real or
exemption from tax. personal property, whether tangible
or intangible may be the subject
(4) There is a mutual respect among co- matter of co-ownership.
owners in regard to the use,
enjoyment, and preservation of the Q: So if youre a co-owner, what do
property owned in common. you own?
A: You own an undivided spiritual/ideal
Case portion. Before partition, you cannot
Diversified Credit v. Rosado say you own a specific portion.
Therefore, you can validly sell only
Facts your ideal share.
A lot belonged to 13 co-owners
including the Rosado. She signed a Q: The marriage questionin marriage,
deed of sale together with the co- is there co-ownership?
owners in favor of Diversified Credit. A: NO. Co-ownership has its own rules.
However Rosados husband had built a You cant apply absolute partition: to
house on the property without the partition means the dissolution of the
property having been previously regime. You cant partition extra-
partitioned. Diversified then demanded judicially. There has to be court
they vacate or remove the house but approval to make it legal. The best
the spouses refused alleging that it was example of a co-ownership provided
a conjugal house (A.158CC) and that the by law is in case of couple living-in.
building of the house made the 1/13th
share of the wife community property as C. Differences between co-
such making her signature in the deed
of sale void insofar as the 1/13th is ownership and joint
concerned. tenancy
Held Co-ownership Joint Ownership
It is the basic principle in the law of Tenancy in Joint tenancy,
co-ownership that no individual co- Common, Tenancy in
owner can claim title to any definite Ownership in common, Notion of
portion of the land or thing owned in Common, Co- all-for one, one-
common until the partition thereof. dominium for-all
Prior to that time, all that the co-owner Civil law origin Common Law/
has is an ideal, or abstract, quota or Anglo-American
proportionate share in the entire thing origin
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Each co-owner Each joint owner, the ownership for
owner of his ideal the surviving joint more than 10 years
share owners are is void.
subrogated in his Creditors of Creditors of a co-
rights by accretion individual partners owner can attach
(because his right cannot attach and his shares in the
to ownership is sell on execution co-owners and sold
extinguished by his the shares of on execution
deathso if tig 1/3 partners in the
sila, pag namatay partnership
ang isa, tig1/2 Can be Death or incapacity
nalang ang natira. extinguished by of a co-owner does
Each co-owner Joint owner must the death or not affect existence
may dispose of his obtain the consent incapacity of one of a co-ownership
undivided share of all the rest to party
without the others dispose of his There is mutual A special authority
consent. share. representation of is needed for such
In case there is a The defense of one the parties representation.
co-owner who is a joint owner can be A partner cannot A co-owner can
minor, minority as used as a defense transfer his rights freely dispose of
a defense against by all joint owners. to a 3rd person his share without
prescription is without the need to ask the
exclusive to him. consent of the consent of the
others other co-owners.
D.Differences between Distribution of Profits of a co-
profits can be owner depend on
partnership and co- stipulated upon his proportionate
ownership (profit-sharing) share; profit-
sharing is
Ordinary Co-ownership invariable (Art.
Partnership 485) not subject to
With legal/juridical No legal stipulation
personality distinct personality distinct
from its members from its members E. Sources of co-
Created only by created by LAW
agreement or FOCUS [Law, ownership
contract to that Fortuitous Event,
effect Occupancy, Labnotes
Contract, The main sources of co-ownership
Succession] are law and contracts. Succession,
Purpose is to Purpose is chance, and occupation are deemed
obtain profit collective subsumed in law.
enjoyment and to
maintain the unity (1) Law
and preservation of (a) Cohabitation
the things owned in (i) Between man and woman
common. capacitated to marry each
other.
No term set limit As a rule, an
set by law agreement to keep

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Art. 147. When a man and a woman the properties acquired by both the
who are capacitated to marry each parties through their actual joint
other, live exclusively with each other as contribution of money, property, or
hysband and wife without the benefit of industry shall be owned by them in
marriage or under a void marriage, their common in proportion to their
wages and salaries shall be owned by respective contributions. In the absence
them in equal shares and the property of proof to the contrary, their
acquired by both of them through their contributions and corresponding shares
work or industry shall be governed by are presumed to be equal. The same
the rules on co-ownership. rule and presumption shall apply to joint
In the absence of proof to the deposits of money and evidences of
contrary, properties acquired while they credit.
lived together shall be presumed to If one of the parties is validly married
have been obtained by their joint to another, his or her share in the co-
efforts, work or industry, and shall be ownership shall accrue to the absolute
owned by them in equal shares. For community or conjugal partnership
purposes of this article, a party who did existing in such valid marriage. If the
not participate in the acquisition by the party who acted in bad faith is not
other party of anyproperty shal be validly married to another, his or her
deemed to have contributed jointly in shall be forfeited in the manner
the acquisition thereof if the formers provided in the last paragraph of the
efforts consisted in the care and preceding Article. The foregoing rules
maintenance of the family and the on forfeiture shall likewise apply even if
household. both parties are in bad faith.
Neither party can encumber or
dispose by acts inter vivos of his or her Case
share in the property acquired by the
other party during cohabitation and Mallilin v Castillo
owned in common, without the consent Facts
of the other, until after the termination According to Eustaquio, he and Elvira
of their cohabitation. When only one of cohabited with each other (while their
the parties to a void marriage is in good respective marriages to other partners
faith, the share of the party in bad faith were still subsisting). After they
in the co-ownership shall be of their separated, Eustaquio filed petition for
common children. In case of default of partition of co-ownership, relating to
or waiver by any or all of the common properties registered solely in the name
children or their descendants, each of Elvira, but bought through the profits
vacant share shall belong to the of a company they both organized.
respective surviving descendants. In Elvira denied these allegations of
the absence of descendants, such share Eustaquio.
shall belong to the innocent party. In all
cases, the forfeiture shall take place Held
upon termination of the cohabitation. Art. 148 of the Family Code now
provides for a limited co-ownership in
(ii) Between man and woman not cases where the parties in union are
capacitated to marry each incapacitated to marry each other.
other [P]roperties acquired by them through
their joint contribution of money,
Art. 148. In cases of cohabitation not property or industry shall be owned by
falling under the preceding Article, only them in common in proportion to their
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contributions which, in the absence of his other co-owner heirs despite
proof to the contrary, is presumed to be the fact that they did not
equal.... contribute to the redemption
Co-ownership is a form of trust and money.
every co-owner is a trustee for the
other. T he provisions of Art. 1452 and (e) Donation
Art. 1453 of the Civil Code (on implied donation to several persons
trust), then are no longer material since jointly, it is understood to be in
a trust relation already inheres in a co- equal shares
ownership which is governed under Title no rights of accretion unless the
III, Book II of the Civil Code. donor otherwise provides
but if donation is made to
(b) Absolute community property husband and wife jointly, there
shall be a right of accretion,
Art. 90. The provisions on co-ownership unless contrary so provide.
shall apply to the absolute community of
property between the spouses in all (f) Chance commixtion in good
matters not provided for in this Chapter. faith

(c) two or more persons purchase


Art. 472. If by the will of their owners
property and by common consent
two things of the same or different kinds
legal title is taken in the name of
are mixed, or if the mixture occurs by
one of them for the benefit of all,
chance, and in the latter case the things
an implied trust is created in
are not separable without injury, each
favor of the others in proportion
owner shall acquire a right proportional
to each to interest of each. (Art.
to the part belonging to him, bearing in
1452)
mind the value of the things mixed or
confused.
(d) Succession
(i) Intestate successionw here
there are two or more heirs, Case
the whole estate of the
decedent is, before its Siari Valley Estates vs Lucasan
partition, owned in common (supra)
by such heirs, subject to the
payment of debt of the Facts
deceased (1078) SVE sought to recover 200 heads of
(ii) Testateif property is given cattle that were driven or wandered
to two or more heirs by the from its pasture lands into the adjoining
testator lands of Lucasan. Lucasan himself
An instance is when a admitted such commixtion although he
person A dies intestate and the says that SVE had already retrieved its
properties are left undivided to animals. Which cattle belong to the
several heirs, such heirs are co- owner can no longer be determined.
owners of the inheritance. If one Lower court found for SVE.
of the heirs dies, his heirs will in
turn be co-owners of the Held
surviving heirs of A. Lucasan willfully caused the
Redemption done by one of commixtion such that under Art. 383
the co-owners/heirs will benefit (now 473) he will be held to forfeit his
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own cattle. No actual evidence exists
customs insofar as they do conflict with
that the 823 missing cattle were taken
the same, and by the rules of co-
by Lucasan, but in view of the proof that
ownership.
his men, on 2 occasions, drove away
more than 30 heads, it may be
presumed that the others must have (i) Occupation Harvesting and
also been driven away on subsequent or fishing
prior occasions. One who stole a part of
the money must have also taken the Case
larger sum lost by the offended party. Punsalan et al. v. Boon Liat et al.
Evidence:
1) An average increase of 30% per year Facts
should give Lucasan around 417 heads 22 fishermen agreed to be the sole
in 1951, yet in the same year, after owners of 2 sacks of ambergris found
selling 230 heads, he still had 400. in the belly of a whale and they agreed
2) Lucasans original stock was entirely that none could sell without the consent
native, yet when 322 heads were of the others. Teck who knew of the
rounded up for inspection, only 29 were existence of the ambergris proposed the
found to be native. seizure of contraband opium, which was
actually the ambergris. The ambergris
(g) Hidden treasure co-ownership having been seized was loaded and
between finder and owner brought to Zamboanga along with
finder who is not the Ahmad, who was left in charge of the
owner ambergris. Teck then proceeded to
found the treasure by offer to purchase the ambergris to which
chance Ahmad refused but was later on
not a trespasser convinced as he was promised
protection from his co-owners. Action
for Replevin was then made (court said
Art. 438. Hidden treasure belongs to it is in fact an ordinary action for
the owner of the land, building, or other recovery of title to and possession of the
property on which it is found. ambergris)
Nevertheless, when the discovery is
made on the property of another, or tof Held
the state of any of its subdivisions, and The sale was not valid. The
by chance, one-half thereof shall be ambergris was undivided common
allowed to the finder. If the finder is a property of the plaintiffs and one of the
trespasser, he shall not be entitled to defendants. This common ownership
any share of the treasure. was acquired by occupancy. None of
If things found be of interest to science them had any right to sell said amber,
of the arts, the State may acquire them there being an express agreement
at their just price, which shall be divided between the co-owners not to sell it
in conformity with the rule stated. without the consent of all. Sale having
been made without the consent of all
(h) Easement of a party wall owners, the same shall have no effect
except as to the portion pertaining to
those who made them. The action for
Art. 658. The easement of party wall recovery pertaining to each co-owner,
shall be governed by the provisions of derived from the right of ownership
this Title, by the local ordinances and inherent in the co-ownership can be

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exercised not only against strangers, time of the constitution of the
but against the co-owners themselves partnership, becomes the common
when the latter performs with respect to property of all the partners, as well as
the thing held in common acts for their all the profits which they may acquire
exclusive benefit, or for exclusive herewith.
ownership, or which are prejudicial to, A stipulation for the common
and in violation of the right of the enjoyment of any other profits may also
community. be made; but the property which the
partners may acquire subsequently by
(j) Condominium law inheritance, legacy, or donation cannot
be included in such stipulation, except
Sec. 6(c) of RA 4726 unless the fruits thereof.
otherwise provided, common areas
are held in common by the holders of (ii) Of profits
the units in equal shares, one for
each unit. Art. 1780. A universal partnership of
profits comprises all that the partners
(2) Contract may acquire by their industry or work
(a) Two or more persons agree to during the existence of the partnership.
create a co-ownership Movable or immovable property
maximum of ten years (494, 2nd which each of the partners may possess
par), extendable by a new at the time of the celebration of the
agreement. contract shall continue to pertain
Example: When two parties exclusively to each, only the usufruct
agree to purchase a piece of passing to the partnership.
land, each one paying a part of
the purchase price, on the
(c) Associations and Societies,
condition that they are to divide
whose articles are kept secret
the land equally between them.
wherein anyone of the members
Parties may also become co-
may contact in his own name
owners of a particular business
with third persons (no juridical
when no partnership having a
personality)
distinct juridical existence is
formed between them.
F. Rights of each co-
(b) Universal Partnership owner as to the thing
(i) Of all present properties owned in common.
[do not get confused. The rights are
Art. 1778. A partnership of all present those in BOLD. 1-8. The mnemonic is:
property is that in which the partners USE the COPs LP!: (1)Use thing; (2)
contribute all the property which Share benefits; (3)Ejectment suit;
actually belongs to them to a common (4)Compel to contribute; (5)Object to
fund, with the intention of dividing the alteration; (6)Protect against prejudice;
same among themselves, as well as all (7)Exercise legal redemption; (8)ask for
the profits which they may acquire partition]
therewith.
(1) To use the thing according to
Art. 1779. In a universal partnership of its purpose intended (may be
all present property, the property which altered by agreement, express or
belongs to each of the partners at the implied; provided:
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Use of one co-owner of the thing
Art. 486. Each co-owner may use the must not be in such a way as to
thing owned in common, provided he prevent the other co-owners from
does so in accordance with the purpose making use of the property
for which it is intended and in such a according to their own rights.
way as not to injure the interest of the - Co-owners may establish rules
co-ownership or prevent the other co- regarding their use of the
owners from using it according to their property co-owned
rights. The purpose of the co-ownership - The right of enjoyment is limited
may be changed by agreement, express by a similar right of others.
or implied. - There should be just and
equitable distribution of uses
among all co-owners
Any express or implied Any act against the collective
agreement should govern in interest s an act against ownership
determining what the purpose for and the remedies available to
which the property is intended. owners in general may by used by
Without such agreement, it is the co-owners.
understood that the thing is
intended for that use for which it Case
is ordinarily adapted to or the use Pardell v. Bartolome
to which it has been previously
devoted. Facts
Mere tolerance on the part of the Vicenta and Matilde are sisters who
co-owers cannot legalize the inherited real properties from their
change in the use of a thing mother. Ricardo and Vicenta Pardell
intended by the parties. Mere claim that Gaspar and Matilde
tolerance cannot be the basis of Bartolome had refused to divide the
prscription. properties, acted as administrators w/o
judicial authority and enjoyed properties
(a) without injury or through rent, fruits to the detriment of
prejudice to interest of co- the Pardells. The sisters assented to
ownership; and partition of the properties. However it
(b) without remains to be determined if Matilde, as
preventing the use of other co- co-owner of the Calle Escolta house was
owners (Art. 486) entitled to reside therein without paying
Acts of the Vicenta rent.
co-owner cannot devote the property
co-owned to his exclusive use to the Held
prejudice of the other co-owners. The record shows no proof that
- If a co-owner occupies a building Matilde occasioned any detriment to the
agreed upon interests of the community property.
by all the co-owned to his Each co-owner of realty held pro indiviso
exclusive use to the prejudice of exercises his rights over the whole
the other co-owners. property may use and enjoy the same
- If a co-owner occupies a building with no other limitation than that he
agreed upon by all the co-owners shall not injure the interests of his
to be leased, such co-owner ust coowners, for the reason that, until a
pay rent in favor of all the co- division be made, the respective part of
owners including him each holder can not be determined and

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every one of the coowners exercises Action will not prosper if the
together with his other coparticipants, action is for the benefit of himself
joint ownership over the pro indiviso only and not for the co-ownership.
property, in addition to his use and When the action is brought by
enjoyment of the same. one co-owner for the benefit of all, a
favorable decision will benefit whem
(2) To share in the benefits in but an adverse decision will not
proportion to his interest, affect them if they are not parties in
provided the charges are borne the case or they did not give their
by each in the same proportion consent to the action.
(Art. 485) If the defendant believes he will
win the case, he should implead the
Art. 485. The share of the co-owners, other co-owners so that if he wins,
in the benefits as well as in the charges the other co-owners wil also be
shall be proportional to their respective barred from contesting his
interests. Any stipulation in a contract possession or ownership.
to the contrary shall be void. This article also contemplates a
The portions belonging to the co- case brought by a co-owner against
owners in the co-ownership shall be another co-owner against another
presumed equal, unless the contrary is co-owner who takes exclusive
proved. possession and asserts ownership in
himself alone. The effect of the
action will be to obtain recognition of
A contrary stipulation is void. the co-ownership and the defendant
Portions are presumed equal unless will not be evicted from the whole
contrary is proved. Accretion added to property.
any portion of land co-owned becomes
part of the property in co-ownership and (4) To compel other co-owner to
should be divided according to each co- contribute to expenses for
owners proportionate share. preservation of the thing or right
owned in common and to taxes
(3) Any one of the co-owner may (Art. 488)
bring an action in ejectment
(Art. 487)
Art. 488. Each co-owner shall have
a right to compel the other co-
Art. 487. Any one of the co-owners may owners to contribute to the expenses
bring an action in ejectment. of preservation of the thing or right
owned in common and to the taxes.
Covers all kinds of actions for Any one of the latter may exempt
recovery of possession (forcible himself from this obligation by
entry, unlawful detainer, accion renouncing so much of his undivided
publiciana, and acion reivindicatoria) interest as may be equivalent to his
A co-owner ma bring such action share of the expenses and taxes. No
without necessity of bringin all the such waiver shall be made if it is
other co-owners as co-plaintiffs prejudicial to the co-ownership.
because the suit is deemed to be for
the benefit of all. Co-owners option not to
contribute by waiving his undivided
interest equal to amount of
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contribution (except if waiver is - Renunciation must be express
prejudicial to co-ownership) and unequivocal.
JBL Reyes waiver requires - Renunciation must refer to the
consent of other co-owners: such as portion of the value of the
dacion en pago. interest of the debtor equivalent
to his share in the necessary
Necessary expenses expenses.
taxes and expenses for the - The basis for the computation
preservation of the thing which is not must be the value of interest in
made would endanger the existence the property at the time of
of the thing or reduce its value or renunciation.
productivity
does not imply any improvement Comparison between the Old and New
or increase. Civil Code Provisions on Renunciation
Does not include those that
merely produce benefits for the OLD (Art. 389) NEW (ART. 488)
owner, or merely for luxury, Renunciatio Tantamount to
embellishment or pleasure. n of share cessation of
Refers to rights or dacion
Useful expenses obligation to en pago
they increase the income of the contribute in Refers to
thing owned in common for the the future obligation to
benefit of all the co-owners. Renunciatio contribute in
not covered as one of them n of whole expenses
cannot incur such expenses without share already paid.
the consent of the others and then Unilateral Renunciation of
charge them to pay their shares and absolute as the part of the
later. consent of the undivided interst
The community is not for other co-owners which is
purposes of profit but only for the not needed equivalent to his
preservation of the sources of Extremely share in the
income. unjust when the necessary
New sources of income cannot be share is too expenses.
created at the expense of the co- small an Consent of the
owners without their consent. amount as to other co-owners
the value of the needed
(a) Remedy against defaulting co- interst in the (according to
owneraction to compel him to property Tolentino, as the
contribute such share. He cannot (According to code is silent on
be compelled to renounce his Code this) because
share as such option is at his own Commission) they would have
discretion. to shoulder the
expenses
Co-owner has option not to themselves if he
contribute by waiving his undivided would not
interst equal to amount of contribute.
contribution (unless waiver is Would always
prejudicial to co-ownership) result into
- His failure to pay his share does prejudicial
not amount to renunciation. renunciation
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because there is Consent of all is needed only in
a preexisting acts of ownership.
debt which Notice before undertaking repairs
should be paid is required only when it is
by the other co- practicable.
owners to a third Effect of failure to notify co-
person. owners:
(a) Failure to give notice even
The provision is silent in case the if it was practicavle to do so does
one who paid for the necessary not deprive the co-owner his right
expenses is a third person. It to be reimbursed the
appears that this third person, proportionate share of the other
despite the consent of the other co- in the expenses.
owners to the renunciation, can still (b) The effect of such
sue the renouncing co-owner if his omission is that he is given the
consent was not obtained in the burden of proving the necessity
renunciation. of such repairs and the
reasonableness of the expense.
What are the requisites before (c) He will not be fully
repairs for preservation, reimbursed if the others can
embellishment, or improvements prove that had he notified them,
may be made? they could have hired the
services of another contractor
who would charge less than the
Art. 489. Repairs for preservation may
people whome he contracted or
be made at the will of one of the co-
that they know of a store that
owners, but he must, if practicable, first
sells the needed material at a
notify his co-owners of the necessity for
cheaper price. The difference will
such repairs. Expenses to improve or
be borne by him.
embellish the thing shall be decided
upon by a majority as determined in
(5) To oppose any act or alteration;
Article 492.
remedy of other co-owner in case of
alteration.
A co-owner alone can advance
expenses for preservation of the
Art. 491. None of the co-owners shall,
property even without prior consent
without the consent of the others, make
of others. He is entitled to be
alterations in the thing owned in
reimbursed for the amount he spent
common, even though benefits for all
for necessary expenses.
would result therefrom. However, if the
Will of one of the co-owners is withholding of the consent by one or
sufficient authority to undertake more of the co-owners is clearly
expenses for preservation. He can prejudicial to the common interest, the
proceed with the repairs for courts may afford adequate relief.
preservation despite opposition of
the others.
Consent of majority required only Alteration
in case where the expenses are for - The act by virtue of which
the improvement or embellishment a co-owner
of the thing or for administration and
better enjoyment of the thing.
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- changes the thing from the
common, the resolutions of the majority
state in which the others believe
of the co-owners shall be binding.
it should remain or
There shall be no majority unless the
- Withdraws it form the use to
reolution is approved by the co-owners
which they are desired to be
who represent the controlling interest in
intended in opposition to the
the object of the co-ownership.
common agreement, if there is
Should there be no majority, or
any, or in absence of a common
should the resolution of the majority be
agreement, to the tacit
seriously prejudicial to those interested
agreement of all the co-owners,
in the property owned in common, the
and violating their will
court, at the instance of an interested
party, shall order such measures as it
Acts of alteration requires the may deem proper, including the
consent of ALL the co-owners if it appointment of an administrator.
changes the essence or nature of the Whenever a part of the thing belongs
thing (present article refers to this) exclusively to one of the co-owners, and
because it is an act of ownership. the remainder is owned in common, the
Consent may be express or tacit preceding provision shall apply only to
(such as when a co-owner has the part owned in common.
knowledge of the act of alteration
but does not object)
Tacit consent does not include Administration and better
the liability to answer for any part of enjoyment acts or decisions for the
the expenses incurred in the common benefit of all and not for the
alteration even if such is a useful benefit of only one or some of them.
expense. Characteristics:
Alteration without consent is (a) they refer to the enjoyment and
illegal and the one who did the preservation of the thing
alteration is punished by making him (b) they have transitory effects
lose what he spent in case he may
be made to demolish the work he Comparison between Art.
has done plus damages or 491 and Art. 492:
indemnity. Acts of Acts of
Consent of all is needed in order Alteration/Acts Administration
to I pose a voluntary easement on of Ownership
the property they co-own. Relates to Also for the
Acts of alteration that does not the use, better
change the essence or nature of the substance or enjoyment of the
thing requires only the agreement of form of the property
the majority because it is merely an thing Effects are of
act of administration. Have a transitory
- but if withholding of consent by more character
any one of the co-owners is permanent Consent of the
clearly prejudicial to the common result financial majority
interst, courts may afford Consent of will be binding
adequate relief (Art. 491, CC) all is necessary Does not give
Contrary to rise to a real
Art. 492. For the administration and the co- right over the
better enjoyment of the thing owned in ownership thing owned in
agreement common.
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for determining whether the act is
Effects of acts of alteration and legally one of strict ownership.
remedies of non-consenting co-
owner : Art. 1878. Special powers of attorney
(a) Co-owner who made alterations are necessary in the following cases: x x
may lose whaetever he has spent x
as he will not be reimbursed (8) To lease any real property to
(b) He may be ordered to demolish another person for more than one year.
or remove the alteration at his
expense (6) To protect against acts of
(c) He will be liable for damages and majority which are prejudicial to
other losses minority (Art. 492, Par. 3)
(d) Co-ownership will benefit from (a) Who may manage
the alteration if other co-owners property?
decide to contribute to the The co-owners themselves.
expenses by reimbursing him Court cannot appoint an
(ratification) administrator to manage a
(e) If a house is built in a common property co-owned when the co-
lot, the co-owners are entitled to owners want to handle the
the proportionate share of the management. In this
rent. management, the majority of the
of interest control and their
Q: Can a mere majority of the co- decisions are binding upon the
owners lease real property for any minority. Majority may only
length of time? proceed to act without notice to
A: Old Civil Code rule: the minority if the circumstances
Lease for not more than 6 years warrant urgency.
is just an act of administration.
Lease for more than 6 years is an (b) An administrator
act of ownership. who may or may not be a co-
New Civil Code rule: owner delegated by the co-
Lease becomes an act of owners
ownership and ceases to be an An administrator cannot,
act of administration if: without the unanimous consent of
(1) It is recorded in the all the co-owners, compromise
Registry o Property; and on, donate, cede, alienate,
(2) It is for more than 1 year mortgage, or encumber in any
manner the common property.
Art. 1647. If a lease is to be recorded in (Ex. Constitute an easement)
the Registry of Property, the following
persons cannot constitute the same (c) What is the
without proper authority: the husband majority?
with respect to the wifes paraphernal The majority is not the
real estate, the father or guardian as to majority in number but rather
the property of the minor or ward, and pertains to the majority in interst
the manager without special power. or the financial majority. The
majority required should be
Registration makes the lease construed to be an absolute
majority or more than one-half of
binding on third persons (Art. 1648,
NCC) Special powers is the criterion the value of the thing.
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injury to the thing itself, such
(d) What are acts seriously as an agreement not to
prejudicial? borrow money under
So serious reasonable terms when it is
and affects the interest of the necessary for urgent repairs
co-owners in the community for preservation, or for the
Such that will payment of taxes.
cause injuries enough to
justify the intervention of the (f) Remedies of the minority.
court If the acts of the majority
Judicial prejudice the minority, the latter
intervention is improper for may ask for injunction or at
merely slight causes, or when worse, a partition.
one co-owner suffers an injury
because of circumstances Cases
peculiar to himself alone. Lavadia v Cosme
(e) Examples of Acts Prejudicial to
the Minority: Facts
(1) When the resolution calls for a 6 pious women (A, B, C, D, E, and F)
substantial change or bought jewelry for the Image of Our
alteration of the common Lady of Guadalupe. D had initial
property custody, then E, then the various
descendants of E, and finally C. When C
or of the use to which it
has been dedicated by wanted to make the Bishop of Lipa
custodian, the plaintiffs (F and the heirs
agreement or by its nature.
(2) When the resolution of A, B, and C) objected and designated
F as the custodian thereof. TC:
goes beyond the limits of
inasmuch as the plaintiffs are the
mere administration, or
owners of 4/6 parts pro indiviso of the
invades the proprietary jewels, and defendants (heirs of D and
rights of the co-owners, in E), only 2/6, they have the right to
violation of Art. 491 determine who should be entrusted with
(prohibiting against acts of the custody. F was awarded custody.
alteration)
(3) When the majority leases, Held
loans, or other contracts Plaintiffs have such right. With the
without security, exposing the amount of individual contribution
thing to serious danger to the undetermined, the law presumes that all
prejudice of the other co- of them contributed proportionately.
owners. Having owned 4/6 shares as opposed to
(4) When the majority refuse defendants 2/6, plaintiffs have the right
to dismiss an administrator to choose who must have custody.
who is guilty of fraud or Simple majority rule.
negligence in his
management, or does not Melencio vs. Dy Tiao Lay
have the respectability,
aptitude, and solvency Facts
required of persons holding After the death of the owner of the
such position. land in question, his widow and three of
(5) When resolution, if carried his children executed a contract of lease
out, would cause serious
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of the land in favor of the predecessor in expressly recognized by the law, would
interest of Dy Tiao Lay. The term of the by contracts of long duration be
lease was for 20 years, extendible for a restricted or annulled; and as under
like period at the option of the lessee. It article 1548 of the Civil Code such
was further stipulated that at the contracts cannot be entered into by the
termination of the original period of husband with respect to his wife's
lease or its extension, the lessors might property, by the parent or guardian with
purchase all the buildings on the land at respect to that of the child or ward, and
a price to be fixed by experts appointed by the manager in default of special
by the parties, but if the lessors should power, since the contract of lease only
fail to take a advantage of that privilege, produces personal obligations, and
the lease would continue for another cannot without the consent of all
and further 20 years. persons interested or express authority
The lease contract was not signed by from the owner, be extended to include
two of the co-heirs. In 1920, the heirs stipulations which may alter its
made an extrajudicial partition of the character, changing it into a contract of
inheritance, and among others things, partial alienation of the property leased.
the land here in question fell to the Tolentino: The case was decided
share of plaintiffs herein. under the old civil code-if the lease of
The coheirs that did not sign the immovable property is not for more than
lease contract brought this action to 6 years, it constitutes an act of
recover possession of the land leased to administration and the resolution of the
Dy Tiao Lay. They insisted that they had majority of co-owners is sufficient.; while
never any knowledge of the existence of if it is for more than years it is an act of
such a contract of lease and that the strict ownership and all the co-owners
contract was executed without their must consent. In the present code-
consent. the special power of attorney is required
for leases of real property by an
Held administrator in the following cases:
Considering that, although as a rule 1)the lease cease to be an act of
the contract of lease constitutes an act administration when it is to be recorded
of management, as this court has in the Registry of Property; 2) when the
several times held, cases may yet arise, lease for any real property to another
either owing to the nature of the subject person is for more than one year.
matter, or to the period of duration,
which may render it imperative to Tuason v Tuason
record the contract in the registry of
property, in pursuance of the Mortgage Facts
Law, where the contract of lease may Angela, Nieves and Antonio Tuason
give rise to a real right in favor of the coowned a parcel of land. They entered
lessee, and it would then constitute such into a memorandum of agreement that
a sundering of the ownership as no coowner shall sell, alienate or
transcends mere management; in such dispose of his ownership without fist
cases it must of necessity be recognized giving preference to the other coowners.
that the part owners representing the Angela asked that the contract be
greater portion of the property held in rescinded and the property be
common have no power to lease said partitioned stating that the MoA is null
property for a longer period than six and void.
years without the consent of all the
coowners, whose propriety rights, Held

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The MoA far from violating the legal The period of redemption starts
provision that forbids a co-owner from to run from the WRITTEN notification.
being obliged to remain a party to the However, there is an exceptional
community, precisely has for its purpose case- when there is actual
and object the dissolution of the co- knowledge (Alonzo v. IAC)
ownership and of the community by
selling the parcel held in common and Q: Can redemption money be made
dividing the proceeds of the sale among equal or less than what was paid by
the co-owners. The obligation imposed third persons?
in the MoA to preserve the co-ownership A: Yes, it can be lower if the price of
until all lots shall have been sold is a sale is grossly excessive, such as
mere incident to the main object of when the co-owner didnt want other
dissolving the co-ownership. By virtue co-owners to redeem. However,
of the MoA the parties practically generally it is of the equal amount.
entered into a contract of partnership at
best and most expedient means of Cases
eventually dissolving the property. Mariano v CA

(7) To exercise legal redemption Facts


(Art. 1620, 1623) Francisco left his wife, Antonia and
daughters Amparo and Grace a lot
Art. 1620. A co-owner of a thing may which was foreclosed. Amparo
exercise the right of redemption in case redeemed the property and a year later
the shares of all the other co-owners or Antonia executed a deed of assignment
of any of them, are sold to a third of right of redemption to Amparo who in
person. If the price of the alienation is turn sold the entire property to Mariano.
grossly excessive, the redemptioner When Grace learned fo this she filed a
shall pay only a reasonable one. complaint for recovery of possession of
Should two or more co-owners desire to the land.
exercise the right of redemption, they
may only do so in proportion to the Held
share they may respectively have in the Redemption of the property by a co-
thing owned in common. owner does not vest in him sole
ownership over said property but will
Art. 1623. The right of legal pre- inure to the benefit of all co-owners.
emption or redemption shall not be Redemption is not a mode of
exercised except within thirty days from termination of relationship. It would
the notice in writing by the prospective have been otherwise had Amparo
vendor, or by the vendor, as the case purchased the property after the
may be. The deed of sale shall not be redemption period had lapsed and after
recorded in the Registry of Property, the mortgage bank had consolidation its
unless accompanied by an affidavit of title, in which case there would not
the vendor that he has given written longer be any co-ownership to speak of.
notice thereof to all possible
redemptioners. Reyes vs. Judge Concepcion

Facts
The right of redemption of co-
Marina Zaballero Reyes, Augusto
owners excludes that of adjoining
Zaballero, Socorro Zaballero Francisco.
owners.
Socorro Marquez Vda. De Zaballero,

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Eugenia Z. Luna, Elena Fronda Zaballero There is likewise no merit to
and Leonardo M. Zaballero are the pro- petitioners' contention that private
indiviso co-owners of the eight parcels respondents had acknowledged the pre-
of registered land located in the emptive right of petitioners to purchase
province of Cavite, with an aggregate their shares at a "reasonable price".
area of about 96 hectares. Although it appears that private
Marina Zaballero Reyes, Augusto respondents had agreed to sell their
Zaballero, Socorro Zaballero Francisco pro-indiviso shares to petitioners, the
received a written notice from offer was made at a fixed rate of P12.50
defendants Socorro Marquez Vda. De per square meter. It cannot be said that
Zaballero, Eugenia Z. Luna, Leonardo M. private respondents had agreed, without
Zaballero and Elena Fronda Zaballero qualification, to sell their shares to
that the VOLCANO SECURITIES TRADERS petitioners. Hence, petitioners cannot
AND AGRI-BUSINESS CORPORATION had insist on a right to purchase the shares
offered to buy the latter's share in the at a price lower than the selling price of
properties listed in the complaint. And private respondents.
the petitioners were requested to Neither do petitioners have the legal
exercise their pre-emptive right to right to enjoin private respondents from
purchase defendants' and intervenor's alienating their pro-indiviso shares to a
shares; or to agree to a physical third party. The law does not prohibit a
partition of the properties; or to sell co-owner from selling, alienating or
their shares, jointly with the defendants mortgaging his ideal share in the
and the intervenor, to the VOLCANO property held in common. The law
SECURITIES TRADERS AND AGRI- merely provides that the alienation or
BUSINESS CORPORATION or VOLCANO mortgage shall be limited only to the
LAKEVIEW RESORTS, INC. portion of the property which may be
allotted to him upon termination of the
Held co-ownership and, as earlier discussed,
In this jurisdiction, the legal that the remaining co-owners have the
provisions on co-ownership do not grant right to redeem, within a specified
to any of the owners of a property held period, the shares which may have been
in common a pre-emptive right to sold to the third party. [Articles 1620
purchase the pro-indiviso shares of his and 1623]
co-owners. Article 1620 contemplates of
a situation where a co-owner has Additional Cases
alienated his pro-indiviso shares to a
stranger. By the very nature of the right Halili v. CA
of "legal redemption", a co-owner's light
to redeem is invoked only after the Facts
shares of the other co-owners are sold Guzman, an American citizen, died
to a third party or stranger to the co- and left some real properties to his
ownership. But in the case at bar, at the widow and son (both American citizens).
time petitioners filed their complaint for The widow then assigned all his rights to
injunction and damages against private her son over her share in the 6 parcels
respondents, no sale of the latter's pro- of land left by the husband. The son
indiviso shares to a third party had yet then sold them to Cataniag, a Filipino
been made. Thus, Article 1620 of the citizen. Halili, the owner of the adjoining
New Civil Code finds no application to lot questioned the constitutionality of
the case at bar. the transfers of property and claimed
ownership to the land based on right of

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legal redemption under Art. 1621. TC 1623 requires that the written
dismissed the complaint. CA affirmed notification should come from the
vendor or prospective vendor, not from
Held any other person. The vendor of an
Halili cannot exercise legal undivided interest is in the best position
redemption over the property. The to know who his co-owners are, who
subject land is urban in character based must be notified of the sale. It is the
on the clear findings of both the TC and notification from the seller, which can
CA. Halili has no right to invoke legal remove all doubts as to the fact of the
redemption under Art 1621 since such sale, its perfection, and its validity, for in
article presupposes that the land sought a contract of sale, the seller is in the
to be redeemed is rural. Under Art. best position to confirm whether
1621, both landsthat sought to be consent to the essential obligation of
redeemed and the adjacent lot selling the property and transferring
belonging to the person exercising the ownership thereof to the vendee has
right of redemptionmust be rural. If been given. Thus, sufficient compliance
one or both are urban, the right cannot with Art. 1623 means that Franciscos
be invoked. mother is the one informing her of the
sale, not Boiser. [NOTE: As the subject
Francisco v Boiser sale has already been established
Facts before the courts, it is no longer
Francisco and three of her sisters are required that notice be given by the
co-owners of land on which a mother before Francisco can exercise
commercial building stands. They sold her right. The receipt by Francisco of
1/5 of their undivided share to their summons on 5 Aug 1992 constitutes
mother, thus making their mother a co- actual knowledge on the basis of which
owner. In 1986, without the knowledge Francisco may now exercise her right of
of Francisco & co., the mother sold her redemption within 30 days from finality
share to Boiser. On 5 Aug 1992, of this decision.]
Francisco received summons, with a
copy of the complaint filed by Boiser, Verdad v CA
demanding her share in the rentals
collected by Francisco from the
buildings tenants. Francisco then Angel Macaria Canuto
informed her that she was exercising Burdeos Atega Rosales

her right of redemption as co-owner.


The lower courts ruled that the 30-day
David
period for redemption has lapsed Ramon F
JJ
E A
R
Socorro
because as early as 30 May 1992, (heirs)

Francisco knew about the sale because, Verdad


on that date, Boiser wrote Francisco a
letter informing the latter about the
sale, demanding the rentals, with a copy Facts
of the Deed of Sale between Franciscos Macaria married Canuto after Angels
mother and Boiser. death. After Macaria died intestate,
David died intestate. In 1982, the heirs
Held of Ramon sold to Verdad their interest
The letter of 30 May 1992 cannot be on the disputed lot. On 30 Mar 1987,
considered sufficient as compliance with Socorro discovered the sale while she
the notice requirement of Art. 1623. Art. was on the City Treasurers Office. The

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following day, she sought to redeem the is no direct proof that Carmen & Maxima
property. The trial court ruled that (second vendees) actually knew of the
Socorros right to redeem the property sale to the Pilapils (first vendees), they
had already lapsed, but CA reversed. On are deemed to have constructive
appeal to the SC, Verdad also contends knowledge thereof by virtue of their
that Socorro cannot redeem the relationship to both Agaton & Vitaliana
property, not being a co-heir of Macaria. (vendors).
A third person, within the meaning of
Held Art. 1620 of the Civil Code (on the right
While Socorro is not an intestate heir of legal redemption of a co-owner) is
of her parents-in-law, her right to the anyone who is not a co-owner.
property is not because she rightfully Art. 1623, requiring the vendor of the
can claim heirship in Macarias estate property to give a written notice of sale
but that she is a legal heir of her to the other co-owners, had been
husband, David Rosales, whose rendered inutile by the fact that the
undivided interest over the property Pilapil spouses took possession of the
inherited from Macaria, passed on to his property immediately after the
widow. The right of redemption was also execution of the deed of sale in their
timely exercised. No written notice of favor and continue to possess the same.
the sale was given by the Burdeos heirs Since the fact of possession by the
(vendors) to the co-owners required Pilapil spouses had not been questioned
under Art. 1623. The 30-day period of by any of the co-owners, the latter may
redemption had yet to commence when be deemed to have knowledge of the
Socorro sought to exercise the right of sale.
redemption on 31 Mar 1987, or when
the case was initiated before the trial Labnotes
court. The written notice of sale is Q: In Mariano v CA, if Amparo wanted
mandatory. Notwithstanding actual to run it all by herself, what should
knowledge of a co-owner, the latter is she do?
still entitled to a written notice from the A: Definitely, she cannot participate
selling co-owner in order to remove all in the foreclosure sale as buyer. She
uncertainties about the sale, its terms has two remedies:
and conditions, as well as its efficacy (1) She can buy back
and status. from the bank after one year. By
then, the bank would have
consolidated ownership.
Pilapil v CA (2) She can ask other
Facts co-owners to waive their right of
A parcel of land was co-owned by 4 redemption or pay for it, but it. If
siblings. Two of them sold their they choose to waive it, it is a
undivided share to the Pilapils. donation.
Subsequently, however, the two vendors Other co-owners will be co-
sold the same ideal share to their owners again subject to
relatives (one of the vendees a co- contribution. If they cant
owner, the other one is not). contribute, they are no longer
considered co-owners.
Held
The validity of a title depends on the Q: What is the difference of legal
buyers knowledge, actual or redemption in Art. 1620 from that in
constructive, of a prior sale. While there 1088

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A: In Mariano v. CA, the Supreme Court
stated that the difference lies in the A co-owner can always ask for a
subject matter of the undivided partition. There is no prescriptive
interest. In Art. 1620, the subject period.
matter is the determinate and Exceptions:
particular object whereas in Art. (i) when there is a stipulation
1088, it is the undivided hereditary against it (not beyond 10 years)
right to the universality or set of (ii) when condition of indivision is
properties to be inherited. imposed by transferor (donor or
testator) not exceed 20 years
Q: In Reyes v. Judge Concepcion, if (Art. 494)
they were notified 30 days before (iii) when legal nature of community
the sale but didnt pre-empt, can prevents partition (e.g. party
they redeem later on, do you still wall)
apply the second paragraph? (iv)when partition is generally
A: Sir said that right is alternative, if prohibited by law
they didnt give advance notice, then (v) when partition would render the
redemption comes in. If they were thing unserviceable, or the thing
given notice, there is no more in common is essentially
redemption available. The option indivisible
was lost. - no physical partition but thing
When you redeem, there is no maybe sold and co-owners
need for consignation. It is not really shall divide the proceeds
an obligation. All you need is a (495, 498)
tender of payment. (vi)acquisitive prescription has set in
facor of a stranger to co-
(8) To ownership or in favor of co-
ask for partition (Art. 494) owner.

Labnotes
Art. 494. No co-owner shall be obliged
Q: All agree, can partition before the
to remain in the co-ownership. Each co-
period lapses be shortened?
owner may demand at any time the
A: YES, it is considered a novation by
partition of the thing owned in common,
agreement, and a co-ownership is
insofar as his share is concerned.
created by agreement.
Nevertheless, an agreement to keep
the thing undivided for a certain period
Cases
of time, not exceeding ten years, shall
Ramirez v. Ramirez
be valid. This term may be extended by
a new agreement.
Facts
A donor or testator may prohibit
Ramirez brought an action for
partition for a period which shall not
partition of a parcel of land. Some
exceed twenty years.
defendants agreed while others
Neither shall there be any partition
objected on the theory that partition
when it is prohibited by law.
would work great harm and pre-judice to
No prescription shall run in favor of a
the co-owners. Matter was referred to a
co-owner or co-heir against his co-
Commission. The CFI ruled for partition
owners or co-heirs so long as he
according to the plan submitted by
expressly or impliedly recognizes the co-
petitioners.
ownership.

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Held
No evidence has been introduced, or G.Implications of co-
sought to be introduced, in support of
the allegation that a physical division of owners right over his
the property will cause inestimable ideal share.
damage to the interest of the co-
owners. Moreover, the same is No individual or co-owner can
predicated upon the assumption that a claim title to any definite part or
real estate suitable for commercial portion of the thing co-owned. All
purposes such as the one herein the co-owner has is an ideal abstract,
sought to be partitioned is likely to quota or proportionate share in the
suffer a proportionately great diminution entire land or thing. All that he can
in value when its area becomes too sell or freely dispose is his undivided
small. interest but he cannot sell or
alienate a concrete, specific or
Aguilar v. CA definite part of the thing owned in
Facts common because his right over the
Virgilio and Senen are brso. They thing is represented by a quota or
bought a house in Paranaque for their ideal portion without any physical
father. V's share was 2/3 and Senen 1/3. adjudication.
but by a subsequent memo, they agreed Any co-owner by himself
to equal ownership but S is to assume extinguish any real right existing on
remaining mortgage obligation with SSS. the thing, such as easements or
V was disqualified from obtaining loan martgages because in everything
from SSS, the deed of sale and title was that is for the benefit of the
in S name. After the father's death V community, each co-owner
demanded S vacate the house, the represents all the others.
house be sold and the proceeds be
divided 2/3 for him and 1/3 for S, as well (1) Co-owner has the right
as monthly rentals for S' use of the (a) To share in the fruits and benefits
house. S wants the equal division of (b) To alienate, mortgage, or
proceeds and says being a co-owner, he encumber and dispose off his
was entittled to use and enjoyment ideal share subject to other co-
thereof. owner right of legal redemption.
(c) To substitute another person in
Held the enjoyment of the thing. (Art.
Either one may demand the sale of 493)
the house and lot at any time and the (d) To renounce part of his interest
other cannot object to such demand; to reimburse necessary expenses
thereafter the proceeds of the sale shall incurred by another co-owner
be divided equally according to their (Art. 488)
respective interests. S, being a co-
owner, has the right use the house and (2) Effect of transaction by each co-
lot without paying any compensation to owner
petitioner, as he may use the property (a) Limited to his share in the
owned in common as long as it is in partition
accordance with the purpose for which it (b) Transferree does not acquire any
is intended and in a manner not specific portion of the whole
injurious to the interest of the co- property until partition
owners.

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(c) Creditors of co-owners may decree. Before partition, co-heir can
intervene in the partition to only sell his successional rights.
attack the same if prejudicial (Art.
499), except that creditors Pamplona v Moreto
cannot ask for rescission even if
not notified in the absence of Facts
fraud (Art. 497) ask for recission 6 years after the death of his wife
even if notified. and without the consent of the heirs of
the wife plus even before the liquidation
of the conjugal partnership, Flaviano
Cases Moreto sold 781 sq. m. of conjugal lot to
Carvajal v CA the Pamplona spouses. The conjugal
property consists of 3 adjacent lots
Facts totaling 2,346 sq. m. After Flaviano
Spouses Espique had 5 heirsMaria, pointed ot the sold lot, the Pamplonas
Evairsto, Estefanio, and Tropinia. built their house and piggery on it. After
Curvajal is currently occupying the 2/5 the death of Flaviano, the heirs, insisting
of the whole lot. He purchased of his on their right to the property, demanded
lot from Estefanio and the southern part that the Pamplonas vacate the land. TC
was leased to him by Tropinia. The and CA favored the heirs.
northern is being claimed by spouses
Camarillo after they bought it from Held
Evaristo. Spouses sought recovery of Flaviano had the perfect right to sell
the land. CFI ordered Carvajal to the lot. After the wifes death, he
surrender the property because unless became entitled to of the entire
there is a partition of the estate of the property, with only belonging to the
deceased, co-heir cannot validly claim heirs. They hold the property as co-
title to a specific portion of the estate. owners. Since his share amounts to
1,173 sq. m., the area he sold (781 sq.
Held m.) is within the limits o his share.
Unless the partition is effected, each There was partial partition of the
heir cannot claim ownership over the property when Flaviano pointed to the
definite portion and cannot dispose. lot he sold to the Pamplonas.
Upon death of a person, each of his
heirs becomes the undivided owner of Castro v Atienza
the whole estate. Each co-owner shall
have full ownership of his part even Facts
fruits and benefits. He may alienate, On Jan 24, 1956, brothers Tomas and
assign, or mortgage it. Effect of Arsenio de Castro, Sr. leased to Gregorio
alienation with respect to other co- Atienza a 26-hectare fishpond co-owned
owners shall be limited to the portion by them in Polo, Bulacan for 5 years. In
allotted him during partition. He cannot Nov 1956, Atienza and Arsenio, Sr.
alienate a specific part of the thing in agreed to set aside and annul the
common to the exclusion of other co- contract of lease through a written
owners because his right over the thing agreement signed by both of them. The
is represented by an ideal protion. Co- reason was Arsenio, Sr. wanted to lease
owner cannot adjudicate to himself a the fishpond to another person.
definite portion owned in common until However, the widow of Tomas, Feliza
partition by agreement or by judicial Cruz Vda. de Castro, refused to sign
such agreement. There was an

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agreement that the rent of P2,500 paid sold her right and participation in Lot
by Atienza will be returned to him on No. 802 consisting of 1/3 portion with an
Dec 30, 1956, but due to the lack of area of 640 square meters to Leonora
signature, he was still not paid. He Estoque. The next day, Crispinas co-
instituted an action in the CFI. The heirs executed a deed of extrajudicial
latter ordered the payment of P2,500. settlement wherein they assigned all
CA affirmed. their right, interest and participation in
Lot No. 802 to Crispina Perez.
Held Crispina Perez and her children sold
The consent of the widow of Tomas to Elena Pajimula, the remaining 2/3
is not essential to the validity of the western portion of Lot No. 802 with an
agreement of the cancellation of the area of 958 square meters.
lease between Arsenio and Atienza Held
(despite the absence of express Estoque became the actual owner of
provision that the widows signature is a the southeastern third of lot 802 on
condition for validity). Art 493 of the October 29, 1951. Wherefore, she never
NCC allows the alienation of the co- acquired an undivided interest in lot
owner of his part in the co-ownership. 802. And when eight years later Crispina
The effect of such alienation or Perez sold to the appellees Pajimula the
mortgage shall be limited to the portion western two-thirds of the same lot,
which may be allotted to him in the appellant did not acquire a right to
division upon the termination of the co- redeem the property thus sold, since
ownership their respective portions were distinct
When Arsenio and Tomas entered and separate and they never became
into a contract of lease with Atienza, co-owners.
each of them leased their respective
undivided interest owned in common. Diversified Credit v. Rosado (supra)
In case only the other leased his
share to Atienza, there would result a Facts
partnership between the lessee Atienza A lot belonged to 13 co-owners
and the owner of the other undivided including the Rosado. She signed a
share who did not lease. In short, a co- deed of sale together with the co-
owner can enter into a contract of lease owners in favor of Diversified Credit.
insofar as to his interest. Therefore, he However Rosados husband had built a
can also cancel such lease without the house on the property without the
consent from the other co-owner. It is property having been previously
clear that Felisas signature is not partitioned. Diversified then demanded
needed to cancel the lease of Arsenios they vacate or remove the house but
own undivided share, pursuant to his the sps refused alleging that it was a
right granted by Art 493. conjugal house (A.158CC) and that the
building of the house made the 1/13th
Estoque v Pajimula share of the wife community property as
Facts such making her signature in the deed
Lot No. 802 of the Cadastral survey of sale void insofar as the 1/13th is
of Rosario was originally owned by the concerned.
late spouses, Rosendo Perez and
Fortunata Bernal, who were survived by Held
her children, namely, Crispina Perez, It is the basic principle in the law of
Lorenzo Perez and Ricardo Perez. co-ownership that no individual co-
Crispina Perez Vda. de Aquitania owner can claim title to any definite

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portion of the land or thing owned in But the failure of PNB to cause
common until the partition thereof. annotation of its mortgage within 1 yr
Prior to that time, all that the co-owner from issuance of the title is fatal to its
has is an ideal, or abstract, quota or claim. Land registration proceedings
proportionate share in the entire thing are proceedings in rem and upon the
owned in common by all the co-owners. expiration of the 1 year within which a
It cannot be validly claimed that the petition to review the decree of
house constructed was built on land registration may be filed, said decree
belonging to her, and 158 cannot apply. and the title pursuant thereto amy no
Necessarily, the claim of conversion of longer be changed, altered, or modified,
the wifes share from paraphernal to much less set aside.
conjugal must be rejected.

PNB v CA

Facts
After the death of her husband, Rosa H.Rules on co-ownership
mortgaged the entire conjugal property
to PNB. The title to this property was not applicable to CPG or
still under proceedings but it was ACP
subsequently awarded to the spouses a
year after the mortgage. The mortgage (a) CPG is governed by rules under the
to PNB was, however, not annotated. Family Code. (FC 105-133)
Meanwhile, she defaulted with her (b) Void marriages and cohabitation of
obligation to Manila Trading Co. (MTC) incapacitated persons are governed
and her share (meaning of the by Art. 50, Art. 147, and Art. 148 of
property) was sold at public auction. the Family Code.
Santiago Sambrano, and subsequently,
the Malacas spouses acquired the rights Co-ownership Conjugal
to these shares (registered). Rosa Partnership
similarly defaulted with PNB but the
auction sale was not annotated on the May be Created only by
title. The Court gave PNB a new title. created by an reason of
The CA affirmed and ordered that the ordinary marriage
title to PNB and Reyes be annulled. contract Parties thereto
Sex of co- are on male and
Held owners is one female
After the death of her husband, the immaterial There are only 2
property is supposed to be under co- (kaya kahit conjugal owners
ownership of Rosa and her children. She bading) Profits are
is entitled therefore to only . By There may divided equally,
herself alone, she cannot mortgage the be 2 or more unless there is a
whole property. Assuming that the co-owners contrary
mortgage to PNB was valid, it would be Profits are stipulation in a
so only with regard to the owned by proportional to marriage
Rosa. Under Art 493, any alienation or respective settlement
mortgage by a co-owner shall be limited interests Death of a
to the portion which may be allotted to Death of a spouse dissolves
him in the division upon the termination co-owner does the CPG
of the co-ownership. not dissolve the Encourage by

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co-ownership law for family the second story shall be preserved at
Generally solidarity. the expense of all, except the owner of
co-owners the ground floor and the owner of the
administer first story; and so on successively.
Co-
ownership is
discouraged by (1) Concept of condominium
law Contemplates a multi-story
building with several units.
Partly co-ownership, partly under
I. Special Rules on individual separate ownership
ownership of different Each unit belongs separately to
stories of a house as one or more persons
differentiated from the The land and the common areas
are of common use by the different
provisions in the owners and are under co-ownership
Condominium Law (Act either as contemplated by the Civil
No. 4726)1 Code or through a corporation.
Exclusive interst in units plus
undivided interst in common areas.
Art. 490. Whenever the different Do not constitute a co-ownership
stories of a house belong to different as provided for in the Civil Code.
owners, if the titles of ownership do not When you buy a unit, you are
specify the terms under which they buying the air space and the interior
should contribute to the necessary surfaces.
expenses and there exists no agreement External surfaces are common
on the subject, the following rules shall areas
be observed:
Beams and posts are common
(1) The main and party walls, the
areas
roof and the other things used in
Easement, unless the master
common, shall be preserved at the
deed says otherwise, is an exclusive
expense of all the owners in proportion
easement.
to the value of the story belonging to
each. Your interest in the common
(2) Each owner shall bear the cost of areas will depend on your interest in
maintaining the floor of his story; the the condo
floor of the entrance, front door, Your ownership of the condo unit
common yard and sanitary works and the common areas go together
common to all, shall be maintained at like horse and carriage
the expense of all the owners pro rata; What are documents which are
(3) The stairs from the entrance to important in buying a condo unit?
the first story shall be maintained at the (i) deed of sale
expense of all the owners pro rata, with (ii) enabling or
the exception of the owner of the master deed
ground floor; the stairs from the first to (iii) declaration of
restrictions
1 Tells what
please also refer to the material given each co-owner cannot do
during the sem regarding Q&As about Examples are
the Condo Act how payment be made, how
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to contribute to common area shall remain undivided, and there shall
expenses, etc. be no judicial partition thereof.

Sec. 9 The owner of a project shall, (b) Who manages the condominium?
prior to the conveyance of any (i) condominium corporation
condominium therein, register a (preferred by law) co
declaration of restrictions relating to terminous with the existence
such project, which restrictions shall of the condominium
constitute a lien upon each (ii) co-ownership
condominium in the project and shall (iii) association of owners
insure to and bind all condominium
owners in the project. Such liens, unless (2) Essential requisites for Condominum
otherwise provided, may be enforced by (see discussion under Concept of
any condominium owner in the project Condominium)
or by the management body of such
project. The Register of Deeds shall (3) Rights and Obligations of
enter and annotate the declaration of Condominium owner
restrictions upon the certificate of title What are the incidents of a
covering the land included within the condominium grant?
project, if the land is patented or (a) The boundary of the unit grant
register under the land included within (i) the interior surfaces of the
the project, if the land is patented or perimeter walls, floors,
registered under the Land Registration ceilings, windows, and doors
or Cadastral Acts. (ii) those which are not part of
the unit bearing walls,
Is the interest in the common columns, floors, roofs,
areas always a co-ownership? foundations, and other
Is Art. 490 applicable if there is common structural elements
an owner per floor? NO. of the building; lobbies,
Condominium Act applies. stairways, hallways, and other
How are taxes assessed? areas of common use,
Separately assessed elevator equipment and
shafts, central heating, central
refrigeration, and central air-
Sec. 25. Whenever real property has
conditioning equipment,
been divided into condominiums, each
reservoirs, tanks, pumps, and
condominium separately owned shall be
other central services and
separately assessed, for purposes of
faicilities, pipes, ducts, flues,
real property taxation and other tax
chutes, conduits, wires and
purposes to the owners thereof and the
other utility installations,
tax on each such condominium shall
wherever located, except the
constitute a lien solely thereon.
outlets thereof when located
within the unit.
Can you ask for partition of the (b) Exclusive easement for the use of
common areas? No. Lets see what the air space encompassed by
the Condominium Law has to say: the boundaries of th unit
(i) as it exists at any particular
Sec.7. Except as provided in the time
following section, the common areas

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(ii) as the unit may lawfully be Petitioner Corporation filed for the
altered or reconstructed from collection of assessment and insurance
time to time premiums against private respondents.
(iii) such easement shall be The latter aver that every purchaser of a
auomatically terminated in condominium unit, regardless of
any air space upon whether or not he has fully paid the
destruction of the unitas to purchase price, is a "holder of a
render it untenable separate interest" mentioned in Section
(c) Unless otherwise provided, the 2 of said Condominium Act" and is
common areas are held in automatically a shareholder of the
common by the holders of units, condominium corporation.
in equal shares, one for each unit
(d) a non-exclusive easement for Held
ingress, egress, and support Section 5 of the Condominium Act
through the common areas are expressly provides that the shareholding
subject to such easements in the Condominium Corporation will be
(e) Each condominium unit owner conveyed only in a proper case. Not
shall have the exclusive right to every purchaser of a condominium unit
paint, repaint, tile, wax, paper, or is a shareholder of the condominium
otherwise refinish and decorate corporation. The Condominium Act
the inner surfaces of the walls, leaves to the Master Deed the
ceilings, floors, windows, and determination of when the shareholding
doors, bounding his own unit will be transferred to the purchaser of a
(f) Each condominium owner shall unit, as clearly provided in the deed in
have the exclusive right to this case. Ownership of a unit,
mortgage, pledge, encumber his therefore, is a condition sine qua non to
condominium and to have the being a shareholder in the condominium
same appraised independently of corporation. It follows that a purchaser
the other condominiums but any of a unit who is not yet the owner
obligation incurred by such thereof for not having fully paid the full
condominium owner is personal purchase price, is not a shareholder By
to him. necessary implication, the "separate
(g) Each condominium owner has interest" in a condominium, which
also the absolute right to sell or entitles the holder to become
dispose of his condominium automatically a share holder in the
unless the master deed contains condominium corporation, as provided
a requirement that the property in Section 2 of the Condominium Act,
be first offered to the can be no other than ownership of a
condominium owners within a unit. This is so because nobody can be a
reasonable period of time before shareholder unless he is the owner of a
the same is offered to outside unit and when he ceases to be the
parties. owner, he also ceases automatically to
be a shareholder. The private
Case respondents, consequently, who have
not fully paid the purchase price of their
Sunset View Condominium v Judge units and are not owners of their units
Campos nor members or shareholders of the
petitioner condominium corporation.
Facts
Labnotes

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Q: What is the purpose of the (iii) Presumption is that
Condominium Act? possession of a co-owner is
A: It is a legal device to allow aliens to not adverse.
own real estate. While the prescription is
that possession of a co-owner
J. Extinguishment of Co- cannot take place when the
acts of ownership exercised
Ownership are vague and uncertain, such
prescription arises and
(1) Total destruction of the thing produces all its effects when
the acts of ownership do not
Labnotes have any doubt as to the
Q: Is there still co-ownership if the ouster of the rights of the
house is burned? other co-owners.
A: Yes, as to the lot and debris
(4) Partition or division
(2) Merger of all the interest in one Most natural way of extinguishing
person the co-ownership.
(3) Acquisitive prescription
A division between two or more
(a) By a third person
persons of real or personal property
(b) By one co-owner against the
which they own as co-partners, joins
other co-owners
tenants or tenants in common,
Requisites:
effected by the setting apart of such
(i) Unequivocal acts of
interests so that they may enjoy and
repudiation of the rights of the
possess it in severallity.
other co-owners (acts
amounting to ouster of other
co-owners) (a) Right to ask for partition at any
time except:
Such act of (i) When there is a stipulation
repudiation is brought to against it. (must not be over
the knowledge of such co- 10 years)
owners (ii) When condition of
Must be known to indivision is imposed by
other co-owners and transferor (donor or testator)
shown by clear and must not exceed 20 years
convincing evidence. It Art. 494
must not be merely
(iii) When the legal
turning them away but
nature of community prevents
outright refusal to
partition. (e.g., party wall)
recognize them as co-
(iv)When partition is generally
owners.
prohibited by law e.g. ACP
The evidence (v) When partition would
thereon is clear and render the thing
conclusive unserviceable but the thing
may be sold and the co-
(ii) Open and adverse possession, owners divide the proceeds
not mere silent possession for (Art. 494)
the required period of
extraordinary acquisitive
prescription.

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Art. 494. No co-owner shall be obliged


to remain in the co-ownership. Each co- Art. 499. The partition of a thing
owner may demand at any time the owned in common shall not prejudice
partition of the thing owned in common, third persons, who shall retain the rights
insofar as his share is concerned. of mortgage, servitude or any other real
Nevertheless, an agreement ot keep rights belonging to them before the
the thing undivided for acertain period division was made. Personal rights
of time, not exceeding ten years, shall pertaining to third persons against the
be valid. This term may be extended by co-ownership shall also remain in force,
a new agreement. notwithstanding the partition.
A donor testator may prohibit
partition for a period which shall not
exceed twenty years. Partition shall not
Neither shall there be any partition prejudice third persons
when it is prohibited by law. Third persons are
No prescription shall run in favor of a those who do not intervene in the
co-owner or co-heir against his co- partition
owners or co-heirs so long as he Personal rights
expressly or impliedly recognizes the co- shall remain
ownership.
Art. 500. Upon partition, there shall be
Action for partition a mutual accounting for benefits
will fail if acquisitive prescription has received and reimbursements for
set in. expenses made. Likewise, each co-
owner shall pay for damages caused by
Labnotes reason of his negligence or fraud.
Q: Can a co-owner become sole owner
by acquisitive prescription? Mutual accounting of benefits
A: Generally, NO Because he is not in after partition
adverse possession. The exception Reimbursements
is when the possession becomes Payment of damages due to
adverse when he repudiates the co- negligence or fraud.
ownership, which amounts to an
ouster of the other co-owners. An
ouster is not mere dispossession. Art. 501. Every co-owner shall, after
Because the other co-owners might partition, be liable for defects of title
just be tolerating the exclusive and quality of the portion assigned to
possession of one co-owner. each of the other co-owners.

Q: By what kind of acquisitive


Liability for defects of title and
prescription?
quality of portion assigned to
A: Extraordinary. 30 years must
each
lapse. Because the co-owner is in
bad faith, knowing that there are
suppose to be other co-owners who Art. 543. Each one of the participants
claim title to the property. of a thing possessed in common shall be
deemed to have exclusively possessed
(b) Effect of partition Art. 1091, the part which may be allotted to him
543, 1092-1093, 499-501 upon the division thereof, for the entire

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period during which the co-possession


lasted. Interruption in the possession of Obligation of warranty is
the whole or a part of the thing proportionate to respective
possessed in common shall be to the hereditary shares.
prejudice of all the possessors. Insolvency of one makes the
However, in case of civil interruption, others liable subject to
the rules of court shall apply. reimbursement (joint liability).

(c) Right of Creditors of individual


Part allotted to a co-owner at Co-owners Art. 497
partition will be deemed to be
possessed by such co-owner from
the time the co-ownership Art. 497. The creditors or assignees of
commenced. the co-owners may take part in the
division of the thing owned in common
and object to its being effected without
Art. 1091. A partition legally made their concurrence. But they cannot
confers upon each heir the exclusive impugn any partition already executed,
ownership of the property adjudicated to unless there has been fraud, or in case it
him. was made notwithstanding a formal
opposition presented to prevent it,
Heir is exclusive heir of property without prejudice to the right of the
adjudicated to him. debtor or assignor to maintain its
validity.

Art. 1092. After the partition has been


made, the co-heirs shall be reciprocally All creditors, whether secured or
bound to warrant the title to and the privileged, and those of any
quality of, each property adjudicated. category under title of alienation,
exchange, donation, assignment,
or other obligation of a real or
Co-owners reciprocally bound to personal nature, must be
each other for warranty of title considered to intervene in the
and quality of part given to each partition of the common property.
(hidden defect) after partition. They must have become creditors
during the co-ownership
Art. 1093. The reciprocal obligation of Co-owner debtors have the duty
warranty referred to in the preceding to notify the creditors of the
article shall be proportionate to the partition
respective hereditary shares of the co- Absence of notice makes partition
heirs, but if any of them should be not binding on them.
insolvent, the other co-heirs shall be They can contest such partition if
liable for his part in the same they formulate a formal
proportion, deducting the part opposition thereto.
corresponding to the one who should be Assignee a transferee of a part
indemnified. of the interest of the co-owner
Those who pay for the insolvent heir because if a sale or assignment is
shall have aright of action against him total, the assignee or the buyer
for reimbursement, should his financial should have been subrogated in
condition improve. the place of the vendor or
assignor, who should be excluded
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from the co-ownership, and the (b) how the property is to be
assignee or the buyer will divided between plaintiff
intervene in his own right in and defendants.
partition.
Commissioners may
(d) Procedure for Partition (Rule 69, be appointed by the court
Rules of Court) composed of three
competent and
Art. 496. Partition may be made by disinterested persons to
agreement between the parties or by make the partition.
judicial proceedings. Partition shall be
governed by the Rules of Court insofar Art. 498. Whenever the thing is
as they consistent with this Code. essentially indivisible and the co-owners
cannot agree that it be allotted to one of
(1) Partition may be made: them who shall indemnify the others, it
(a) Orally shall be sold and its proceeds
distributed.
Valid and
enforceable among the
parties. If property is found to be
Statute of frauds incapable of being divided
does not operate for without great prejudice to the
partition is not a interest of each party, the
conveyance of property court may order such property
but merely a segregation be assigned to one co-owner
and designation of that subject to the condition that
part of the property which he will pay the other co-
belongs to the co-owners. owners of the value of their
interests as deemed by the
(b) In writing commissioners.
Court will just confirm such The sale may be made
written agreement. privately or publicly and third
(2) Rules of Court does not persons may become
preclude amicable settlement purchasers.
between parties.
Art. 499. The partition of things owned
(3) Two principal issues in an
in common shall not prejudice third
action for partition:
persons, who shall retain the rights of
(a) plaintiff is indeed a co-
mortgage, servitude, or any other rights
owner of the property
belonging to them before the division
An action for partition will
was made. Personal rights pertaining to
not preosper as such form third persons against the co-ownership
the moment an alleged co-
shall also remain in force,
owner asserts an adverse notwithstanding the partition.
title.
If the community character
of the property is proven, Art. 500. Upon partition, there shall be
partition may be decreed. a mutual accounting for benefits
received and reimbursements for

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expenses made. Likewise, each co- Art. 1095. If a credit should be assigned
owner shall pay for damages caused by as collectible, the co-heirs shall not be
reason of his negligence or fraud. liable for the subsequent insolvency of
the debtor of the estate, but only for his
insolvency at the time the partition is
Q: Who are third persons? made.
A: All those who do not partake in the The warranty of the solvency of the
partition. debtor can only be enforced during the
five years following the partition.
Art. 501. Every co-owner shall, after Co-heirs do not warrant bead debts, if so
partition, be liable for defects of title known to, and accepted by, the
and quality of the portion assigned to distribute. But if such debts are not
each of the other co-owners. assigned to a co-heir, and should be
collected, in whole or in part, the
amount collected shall be distributed
Chapter on partition after intestate proportionately among the heirs.
succession (Arts. 1092-1096) (1072a)
Subsection 2
Effects of Partition Art. 1096. The obligation of warranty
among co-heir shall cease in the
Art. 1091 A partition legally made following cases:
confers upon each heir the exclusive (1) When the testator himself has
ownership of the property adjudicated to made the partition, unless it appears, or
him. it may be reasonably presumed that his
intention was otherwise, but the
Art. 1092 After the partition has been legitime shall always remain
made, the co-heirs shall be reciprocally unimpaired;
bound to warrant the title to, and the (2) When it has been so expressly
qulity of, each property adjudicated. stipulated in the
agreement of partition, unless there has
Art. 1093 The reciprocal obligation of been bad
warranty freffed to in the preceding faith; When the eviction is due to a
article shall be proportionate to the cause subsequent to the partition, or
respective hereditary shares of the co- has been caused by the fault of the
heirs, but if any one of them should be distribute of the property.
insolvent, the other co-heirs shall be
liable for hise part in the same Not in the outline
proportion, deducting the part
corresponding to the one who should be K. Legal Effects of Co-
indemnified.
Those who pay for the insolvent heir Ownership
shall have a right of action against him
for reimbursement, should his financial A co-ownership creates rights in
condition improve. (1071) favor of each one of the co-owners with
respect to the property owned in
Art. 1094. An action to enforce the common. All the bundle of rights in
warranty among heirs mus be brought ownership are found in co-ownership
within ten years from the date the right also, with each co-owner having all such
of action accrues. (n) rights in conjunction with the other co-
owners.

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PROPERTY REVIEWER
Roman Law:
(a) Jus utendi right to use and enjoy
property (including accessions)
(b) Jus fruendi right to the fruits of the
property
(c) Jus abutendi right to consume the
property
(d) Jus disponendi right to dispose of
the property, whether totally or
partially, permanently or temporarily
(e) Jus vindicandi right to recover
property.
(f) Jus possidendi Right to possess the
property by virtue of ownership,
which right is implied from above
bundle of rights.

Applied to co-ownership all the


specific provisions mentioning in detail
the rights of a co-owner with respect to
the thing owned in common could be
subsumed under one of these rights in
ownership. The exercise of such rights
however is limited by concomitant rights
of each co-owner. Thus:

Jus Fruendi rights of co-owner to the


fruits is only in proportion to interest
of the same.
Jus abutendi most limited because of
the prohibition against the alteration
of the property
Jus vindicandi most liberal: civil code
provides that anyone of the co-
owners may exercise the same.

Two senses which can view the rights of


co-owners:
(a) a right over the thing owned in
common limited by concomitant
right of the other co-owners
(b) rights over his ideal share or his
incivided interest over the same
property. absolute owner who can
deal with it like any full owner of an
incorporeal property.

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