CO-OWNERSHIP

Art. 484. There is co-ownership whenever the ownership of an undivided thing or

right belongs to different persons. In default of contracts, or of special
provisions, co-ownership shall be governed by the provisions of this Title. (392)

CO-OWNERSHIP

 State where an undivided thing or right belongs to two or more persons

 Right of common dominion which 2 or more persons have over a spiritual, ideal part
of a thing which is not physically divided

SOURCES OF CO-OWNERSHIP

1. By law
2. By contract
3. By chance
4. By occupation or occupancy
5. By succession or will

CHARACTERISTICS OF CO-OWNERSHIP

 There must be more than one subject or owner

 There is one physical whole divioded into ideal shares
 Each ideal share is definite in amount but is not physically segregated from the rest
 Regarding the physical whole, each co-owner must respect each other in the
common use, enjoyment, or preservation of the physical whole
 Regarding the ideal share, each co-owner holds almost absolute control over the
same
 It is not a juridical person
 There is no mutual agency
 There is no extinguishment upon the death of any co-owner
 A co-owner is in a sense a trustee for the other co-owners

Art. 485. The share of the co-owners, in the benefits as well as in the charges, shall be
proportional to their respective interests. Any stipulation in a contract to the contrary
shall be void. The portions belonging to the co-owners in the co-ownership shall be
presumed equal, unless the contrary is proved. (393a)

SHARES IN BENEFITS OR CHARGES

 Share is proportional to the interest of each

 Contrary stipulation is void
 Each co-owner shares proportionately in the accretion or alluvium of the property

Art. 486. Each co-owner may use the thing owned in common, provided he does so in
accordance with the purpose for which it is intended and in such a way as not to injure
the interest of the co-ownership or prevent the other co-owners from using it according
to their rights. The purpose of the co-ownership may be changed by agreement,
express or implied. (394a)

EACH CO-OWNER HAS THE RIGHT TO USE THE PROPERTY FOR THE
PURPOSE INTENDED

 The interest of the co-ownership must be impaired or prejudiced

 And the co-owners must not be prevented from using it

Art. 487. Any one of the co-owners may bring an action in ejectment. (n)

Art. 488. Each co-owner shall have a right to compel the other co-owners to contribute
to the expenses of preservation of the thing or right owned in common and to the taxes.
Any one of the latter may exempt himself from this obligation by renouncing so much of
his undivided interest as may be equivalent to his share of the expenses and taxes. No
such waiver shall be made if it is prejudicial to the co-ownership. (395a)

EXPENSES FOR PRESERVATION

 A co-owner has a right to compel the others to share in the expenses of preservation,
even if incurred without prior
notification to them but he must notify if practicable
 Covers only necessary expenses

A CO-OWNER MAY EXEMPT HIMSELF

 By renouncing so much of his undivided share as may be equivalent to the share of

the expenses and taxes

Art. 489. Repairs for preservation may be made at the will of one of the co-owners, but
he must, if practicable, first notify his co-owners of the necessity for such repairs.
Expenses to improve or embellish the thing shall be decided upon by a majority as
determined in Article 492. (n)

CONSENT REQUIREMENTS

1. ACTS OF PRESERVATION—no consent requirement

2. ACTS OF ADMINISTRATION—financial majority
3. ACTS OF ALTERATION—all must consent

Art. 490. Whenever the different stories of a house belong to different owners, if
the titles of ownership do not specify the terms under which they should
contribute to the necessary expenses and there exists no agreement on the
subject, the following rules shall be observed:

(1) The main and party walls, the roof and the other things used in common, shall be
preserved at the expense of all the
owners in proportion to the value of the story belonging to each;

(2) Each owner shall bear the cost of maintaining the floor of his story; the floor of the
entrance, front door, common yard and sanitary works common to all, shall be
maintained at the expense of all the owners pro rata;
(3) The stairs from the entrance to the first story shall be maintained at the expense of
all the owners pro rata, with the exception of the owner of the ground floor; the stairs
from the first to the second story shall be preserved at the expense of all, except the
owner of the ground floor and the owner of the first story; and so on successively. (396)

PERPENDICULAR OWNERSHIP
 Different stories belong to different owners
Art. 491. None of the co-owners shall, without the consent of the others, make
alterations in the thing owned in common, even though benefits for all would result
therefrom. However, if the withholding of the consent by one or more of the co-owners
is clearly prejudicial to the common interest, the courts may afford adequate relief.
(397a)

ALTERATIONS
1. Change which is more or less permanent
2. Which changes the use of the thing
3. Which prejudices the condition of the thing or its enjoyment by
others

Art. 492. For the administration and better enjoyment of the thing owned in common, the
resolutions of the majority of the co-owners shall be binding. There shall be no majority
unless the resolution is approved by the co-owners who represent the controlling
interest in the object of the co-ownership. Should there be no majority, or should the
resolution of the majority be seriously prejudicial to those interested in the property
owned in common, the court, at the instance of an interested party, shall order such
measures as it may deem proper, including the appointment of an administrator.
Whenever a part of the thing belongs exclusively to one of the coowners, and the
remainder is owned in common, the preceding provision shall apply only to the part
owned in common. (398)

NOTE: An act of administration pertains to management and useful

expenses

Art. 493. Each co-owner shall have the full ownership of his part and of the fruits and
benefits pertaining thereto, and he may therefore alienate, assign or mortgage it, and
even substitute another person in its enjoyment, except when personal rights are
involved. But the effect of the alienation or the mortgage, with respect to the co-owners,
shall be limited to the portion which may be alloted to him in the division upon the
termination of the coownership. (399)

RIGHT WITH RESPECT TO THE IDEAL OR PROPORTIONATE SHARE

 Deals nto with the right to the whole property but only with the right to the IDEAL or
metaphysical share of each co-owner
RULES REGARDING THE IDEAL SHARE
1. Each co-owner must have full ownership of his part and his share of the fruits and
benefits
2. He may alienate, assign or mortgage his ideal share but of course without prejudice
to the exercise of the others of their right of legal redemption
3. He may even substitute another person for the enjoyment except when personal
rights are involved
4. He may exempt himself from necessary expenses and taxes by renouncing part of
his interest in the co-ownership

Art. 494. No co-owner shall be obliged to remain in the coownership. Each co-owner
may demand at any time the partition of the thing owned in common, insofar as his
share is concerned. Nevertheless, an agreement to keep the thing undivided for a
certain period of time, not exceeding ten years, shall be valid. This term may be
extended by a new agreement. A donor or testator may prohibit partition for a period
which shall not exceed twenty years. Neither shall there be any partition when it is
prohibited by law. No prescription shall run in favor of a co-owner or co-heir against
his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-
ownership. (400a)

WHEN A CO-OWNER MAY NOT SUCCESSFULLY DEMAND A PARTITION

1. If by agreement, for a period not exceeding 10 years, partition is prohibited
2. When partition is prohibited by the donor or testator, for a period not exceeding 20
years
3. When partition is prohibited by law
4. When a physical partition would render the property unserviceable but in this case,
the property may be allotted to one of the coowners
5. When the legal nature of the common property doesn't allow partition

PROHIBITION TO PARTITION BECAUSE OF AN AGREEMENT

1. Period must not extend more than 10 years
2. If it exceeds 10 years, the stipulation is valid insofar as the first 10 years is concerned
3. There can be an extension but only after the original period has ended
4. After the first extension, there can be another, and so on indefinitely, as long as for
each extension, the period of 10 years is not exceeded

PRESCRIPTION IN FAVOR OF A CO-OWNER AGAINST THE OTHER CO-OWNERS

1. Clear and unequivocal act of repudiation of the co-ownership
2. Act of repudiation must be made known
3. Clear and convincing evidence
4. Other requirements of prescription—open, continuous, exclusive, notorious, adverse,
public possession in the concept of owner
Art. 495. Notwithstanding the provisions of the preceding article, the co-owners cannot
demand a physical division of the thing owned in common, when to do so would render
it unserviceable for the use for which it is intended. But the co-ownership may be
terminated in accordance with Article 498. (401a)

Art. 496. Partition may be made by agreement between the parties or by judicial
proceedings. Partition shall be governed by the Rules of Court insofar as they are
consistent with this Code. (402)

PARTITION MAY BE MADE EXTRAJUDICIALLY OR JUDICIALLY. IF THERE IS NO

AGREEMENT, ONE CAN FILE FOR PARTITION. THE COURT WILL ASCERTAIN
THE FOLLOWING:
1. Is there co-ownership?
2. Are they the co-owners?
3. What are their respective shares?
4. What would be the allocation?

Art. 497. The creditors or assignees of the co-owners may take part in the division of the
thing owned in common and object to its being effected without their concurrence. But
they cannot impugn any partition already executed, unless there has been fraud, or in
case it was made notwithstanding a formal opposition presented to prevent it, without
prejudice to the right of the debtor or assignor to maintain its validity. (403)

Art. 498. Whenever the thing is essentially indivisible and the coowners cannot agree
that it be allotted to one of them who shall indemnify the others, it shall be sold and its
proceeds distributed. (404)

JURIDICAL DISSOLUTION
1. First, give the whole to one of the co-owners who will now be required to indemnify
the rest
2. If this is not agreed upon, there must be a sale

Art. 499. The partition of a thing owned in common shall not prejudice third persons,
who shall retain the rights of mortgage, servitude or any other real rights belonging to
them before the division was made. Personal rights pertaining to third persons against
the co-ownership shall also remain in force, notwithstanding the partition. (405)

Art. 500. Upon partition, there shall be a mutual accounting for benefits received and
reimbursements for expenses made. Likewise, each co-owner shall pay for damages
caused by reason of his negligence or fraud. (n)

EFFECTS OF PARTITION
1. Mutual accounting for benefits
2. Mutual reimbursement for expenses
3. Indemnity for damages in case of negligence or fraud
4. Reciprocal warranty for defects of title or quality
5. Each former co-owner is deemed to have had exclusive possession of his part
allotted to him for the entire period during which the co-possession lasted

Art. 501. Every co-owner shall, after partition, be liable for defects of title and quality of
the portion assigned to each of the other coowners. (n)

Art. 1620. A co-owner of a thing may exercise the right of redemption in case the shares
of all the other co-owners or of any of them, are sold to a third person. If the price of the
alienation is grossly excessive, the redemptioner shall pay only a reasonable one.
Should two or more co-owners desire to exercise the right of redemption, they may only
do so in proportion to the share they may respectively have in the thing owned in
common. (1522a)

Art. 1623. The right of legal pre-emption or redemption shall not be exercised except
within thirty days from the notice in writing by the prospective vendor, or by the vendor,
as the case may be. The deed of sale shall not be recorded in the Registry of Property,
unless accompanied by an affidavit of the vendor that he has given written notice
hereof to all possible redemptioners. The right of redemption of co-owners excludes that
of adjoining owners. (1524a)

Art. 1647. If a lease is to be recorded in the Registry of Property, the following persons
cannot constitute the same without proper authority: the husband with respect to the
wife's paraphernal real estate, the father or guardian as to the property of the minor or
ward, and the manager without special power. (1548a)

Art. 1648. Every lease of real estate may be recorded in the Registry of Property.
Unless a lease is recorded, it shall not be binding upon third persons. (1549a)

Art. 1878. Special powers of attorney are necessary in the following cases:
(1) To make such payments as are not usually considered as acts of administration;
(2) To effect novations which put an end to obligations already in existence at the time
the agency was constituted;
(3) To compromise, to submit questions to arbitration, to renounce the right to appeal
from a judgment, to waive objections to the venue of an action or to abandon a
prescription already acquired;
(4) To waive any obligation gratuitously;
(5) To enter into any contract by which the ownership of an immovable is transmitted or
acquired either gratuitously or for a valuable consideration;
(6) To make gifts, except customary ones for charity or those made to employees in the
business managed by the agent;
(7) To loan or borrow money, unless the latter act be urgent and indispensable for the
preservation of the things which are under administration;
(8) To lease any real property to another person for more than one year;
(9) To bind the principal to render some service without compensation;
(10) To bind the principal in a contract of partnership;
(11) To obligate the principal as a guarantor or surety;
(12) To create or convey real rights over immovable property;
(13) To accept or repudiate an inheritance;
(14) To ratify or recognize obligations contracted before the agency;
(15) Any other act of strict dominion. (n)