V.

CO-OWNERSHIP (ART. 484-501)

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.

Co-ownership - state where an undivided thing or right belongs to two or more persons.
- also known as the right of common dominion which two or more persons have in a spiritual part of a thing which is not materially or physically
divided.
Requisites of Co-ownership:
1. Plurality of subjects
2. Unity of object (material indivision)
3. Recognition of the ideal or intellectual shares of the co-owners which determine their rights and obligations.

CO-OWNERSHIP PARTNERSHIP

As to creation: - created by law, - always created by

contract, succession, contract.
fortuitous event, or
occupancy.

As to purpose: - the common - to obtain profits.

enjoyment of a thing
or the right owned in
common

As to personality: - has no juridical - has juridical

personality which is personality.
separate and distinct

As to duration: - agreement for it to - no limitation upon

exist for 10 years is the duration
valid

As to power of - a co-owner has no - a partner has the

members: power to represent power to represent
the co-ownership the partnership
unless there is an unless there is a
agreement stipulation to the
contrary

As to effect of - if a co-owner - if a partner

disposition of transfers his share to transfers his share
shares: a third person, the to a third person,
latter automatically the latter does not
becomes a co-owner become a partner,
unless agreed upon
by all the partners

As to division of - the divisions of the - in a partnership

profits: benefits and charges the division of
are fixed by law profits and losses
may be subject to
the agreement of
the partners

As to effect of - the death of a co- - the death of a

death: owner has no effect partner shall result
upon the existence of in the dissolution of
the co-ownership the partnership

Kinds of Co-ownership:
a. From the viewpoint of the subject matter:
1. Co-ownership of an undivided thing
2. Co-ownership of an undivided right

b. From the viewpoint of the source:
1. Contractual co-ownership
2. Non-contractual co-ownership

c. From the viewpoint of the rights of the co-owners:
1. Tenancy in common
2. Joint tenancy

Characteristics of Co-ownership:
1. There must be more than one subject or owner.
2. There is one physical whole divided into ideal shares.
3. Each idea share is definite in amount, but is not physically segregated from the rest.
4. Regarding the physical whole, each co-owner must respect each other in the common use, enjoyment or preservation of the physical whole.
5. Regarding the ideal share, each co-owner holds almost absolute control over the same.
6. It is not a juridical person.
7. A co-owner is in a sense a co-trustee for the other co-owners. Thus, he may not ordinarily acquire exclusive ownership of the property held in
common through prescription.

CO-OWNERSHIP CONJUGAL PARTNERSHIP
a. May arise by an ordinary a. Arises only because of the
contract marriage contract

b. Sex of the co-owners is b. One must be a male, the
immaterial other a female

c. Co-owners may be two or c. Conjugal owners are always
more only two

d. Profits are proportional to d. Profits are generally 50-50
respective interests unless a contrary stipulation is
in a marriage settlement
e. Death of one does not
dissolve the co-ownership e. Death of either husband or
wife dissolves the conjugal
f. Generally, all the co-owners partnership
administer
f. Generally, the husband is the
g. Co-ownership is discouraged administrator
by law
g. Encouraged by law to
provide for better family
solidarity

Q: How do you determine the share of the co-owners in the benefits and charges arising from the co-ownership?

According to the NCC, the share of the co-owners in the benefits and charges arising from the co-ownership shall be proportional to their
respective interests and any stipulation in a contract to the contrary shall be void. (Art.485,par.1)

Consequently, in order to determine the share of the co-owners in the benefits and charges, we must first determine their respective interests in
the co-ownership. Under the law, such interests are presumed equal, unless the contrary is provided. (Art.485,par.2)

Q: What are the limitations upon the right of a co-owner to use the thing owned in common?

Art. 486 - The thing should be used only:
1. In accordance with the purpose for which it is intended;
2. In such a way as not to injure the interest of the co-ownership;
3. In such a way as not to prevent the other co-owners from using it according to their rights.

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

The term “ejectment” covers the following actions:
a. Forcible entry
b. Unlawful detainer
c. Accion publiciana
d. Accion reivindicatoria
e. Quieting of title
f. Replevin

General rule: the main issue in an ejectment suit is possession de facto, not possession de jure.

Art. 488 - Each of the co-owner shall have a right to compel the other co-owner 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.

Requirements of Renouncement:
1. If the renouncing is in favor of the creditor, said creditor must give his consent.
2. If the renouncing is in favor of the other co-owners, a novation (substitution of debtor) would result which would necessitate the consent of the
other co-owner and the creditor.

ü Renunciation cannot be implied by mere refusal to pay the proportionate share.

Art. 489 - Repairs for preservation may be made at the wil 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.

Number of co-owners who must consent:
1. Repairs, ejectment action - ONE (Art.489)
2. Alterations or acts of ownership - ALL (Art.491)
3. All others, like useful improvements, luxurious
embellishments, administration and better enjoyment - FINANCIAL MAJORITY (Art.489&492)

ü A co-owner can go ahead with the necessary repairs even against the opposition of all the rest because the negligence of others should not
prejudice him.
ü Though it is practicable to do so and no notification was made, the other co-owners will still be liable since the repairs were essential.
ü “Practicable”- means that something can be done.

Q: If the different stories of a house belong to different owners, and 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, what RULES shall be observed?

Art. 490 - Whenever the different stories of a house belong to different owners, if the title 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 other things used in common, shall be preserved at the expense of all 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 expenses 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.

ü Perpendicular Co-ownership - different stories belong to different persons.

Rules to remember:
a. Proportionate contribution is required for the preservation of: the main walls; the party walls; the roof; the other things used in common.
b. Each floor owner must bear the expense of his floor.
c. Stairs are to be maintained from story to story, by the users.

ü Ground floor is distinguished from the first story.

CONDOMINIUM ACT Q&A FROM JURADO.

Q: What is meant by condominium?

According to the Condominium Act (R.A. No. 4726), a condominium is an interest in real property consisting of a separate interest in a unit in
a residential, industrial or commercial building and an undivided interest in common, directly or indirectly, in the land on which it is located and in
other common areas of the building. A condominium may include, in addition, a separate interest in other portions of such real property. (Sec. 1)

Q: Who has the title to the condominium project?

We must qualify our answer. When we speak of the condominium project, we refer to the entire parcel of property divided or to be divided in
condominiums, including all structures thereon.(Sec.3) Thus, as far as the unit of the project which is being used by a condominium owner is
concerned, such owner has title thereto, but as far as the common areas, including the land, are concerned, all of the condominium owners have
an undivided interest or title thereto. However, title to such common areas, including the land, may be held by a corporation (hereinafter known as
the condominium corporation) in which the holder of separate interests shall automatically be members or shareholders, to the exclusion of others,
in proportion to the appurtenant interest of their respective units in the common areas. (Sec.1)

Q: If you are the owner of a unit in a condominium project, such as an apartment, office or store, can you transfer your interest in the project to
a third person?

Yes, however, the limitations prescribed by Sec. 5 of the Condominium Act must be observed. According to this section “Any transfer or
conveyance of a unit or an apartment, office or store or other space therein, shall include the transfer or conveyance of the undivided interest in the
common areas, or in a proper case, the membership or shareholding in the condominium corporation: Provided, however, That where the common
areas in the condominium project are held by the owners of separate units as co-owners thereof, no condominium unit therein shall be conveyed or
transferred to person other then Filipino citizens or corporations at least 60% of the capital stock which belong to Filipino citizens, except in cases of
hereditary succession. Where the common areas in a condominium project are held by a corporation, no transfer of the appurtenant membership or
stockholding in the corporation ill cause the alien interest in such corporation to exceed the limits imposed by existing laws”.

Q: Under the Condominium Law, when can the owner of a unit demand for the partition by sale of the condominium project?

According to Sec. 8 of the Condominium Law, when several persons own condominiums in a condominium project, an action may be brought by
one or more such persons for partition by sale of the entire project, as if the owners of all the condominiums in such project were co-owners of the
entire project in the same proportion as their interests in the common areas: Provided, however, that a partition shall be made only upon showing:

1. That three (3) years after damage or destruction to the project which renders a material part thereof unfit for its use prior thereto, the project
has not been rebuilt or repaired substantially to its state prior to its damage or destruction; or

2. That damage or destruction to the project has rendered one-half or more of the units therein untenantable and that condominium owners
holding an aggregate more than 30% interest in the common areas are opposed to repair or restoration of the project; or

3. That the project has been in existence in excess of 50 years, that it is obsolete and uneconomical, and that condominium owners holding in
aggregate more than 50% interest in the common areas are opposed to repair, restoration or modeling or modernizing of the project; or

4. That the project or material part thereof has been condemned or expropriated and that the project is no longer viable, or that the condominium
owners holding in aggregate more than 70% interest in the common areas are opposed to continuation of of the condominium regime after
expropriation or condemnation of a material proportion thereof; or

5. That the conditions for such partition by sale set forth in the declaration of restrictions duly registered in accordance with the terms of this act
have been met.

-----------END OF CONDOMINIUM ACT Q&A---------------

Q: Distinguish between the right of a co-owner to make repairs for the preservation of the property owned in common, to perform acts of
administration, and to perform acts of ownership or alteration.

1. With regard to acts of preservation: Repairs for preservation may be made at the will of one of the co-owners, but he must, if practicable, first
notify the other co-owners of the necessity for such repairs. (Art. 489)

2. With regard to acts of administration: Acts of administration can be performed only with the concurrence of the majority of the co-owners. (Art.
492)


3. With regard to acts of alteration: Acts of alteration can be performed only with the concurrence of the other co-owners. (Art. 491)

Acts of Administration - are those which refer to the enjoyment, exploitation and alteration of the thing which do not affect its substance or form.
This act is transitory in character and does not affect the substance or form of the thing. In relation to a right of a co-owner, this act requires the
consent or resolution of the majority of the co-owners.

Acts of Alteration - are those by virtue of which a co-owner , in opposition to the expressed or tacit agreement of all co-owners, and in violation of
their will, changes the thing from the state in which the others believe it should remain, or withdraws it from the use to which they believe it is
intended. This act is permanent and relates to the substance or essence of the thing itself. In relation to a right of a co-owner, this act requires the
consent of all.

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.

Alteration - a change which is more or less permanent; which changes the use of the thing; and which prejudices the condition of the thing or its
enjoyment by the others.

Such as:
1. Sale, donation, mortgage of the whole or part (with definite boundaries) of the property;
2. A voluntary easement;
3. Lease of real property if the lease is recorded or the lease is for more than one year.
4. The construction of a house and lot owned in common;
5. Any other act of strict dominion or ownership;
6. Impliedly, contracts of long duration

ü A unanimous consent for alterations required by the law my be given impliedly but only for the purpose of making the alteration legal.
ü Replacement cannot be considered as an alteration

ü An alteration is illegal when made without the express or implied consent of the other co-owners.

Effects of an Illegal Alteration:

1. The co-owner responsible may lose what he has spent;
2. Demolition can be compelled;
3. He would be liable for the losses and damages;
4. BUT whenever benefits the co-ownership derives will belong to it
5. In case a house is constructed on common land, all the co-owners will be entitled to a proportionate share of the rent.

Q: Wem, Tipi, and Manang Nics are co-owners of a 10-hectare agricultural land in Quezon City. T is the administrator. S and T are in Spain. May
R convert the land to a memorial park without the knowledge and consent of S and T? Explain.

R cannot convert the land into a memorial park without the knowledge and consent of S and T.

Undoubtedly, to convert and agricultural land into a memorial park constitutes an act of alteration or ownership which, according to Art. 491 of the
NCC, requires the concurrence of all the co-owners, because such act involves a change of the use for which the property is intended. Acts of
alteration are those acts by virtue of which a co-owner, in opposition to the expressed or tacit agreement of all the co-owners, and in violation of
their will, changes the thing from the state in which the others believe it should remain, or withdraws it from the use to which they believe it is
intended. Thus, even assuming that the transformation of the land into a memorial park will benefit all the co-owners, the still requires the
concurrence of all. (Art.491,NCC)

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 co-owners, and the remainder is owned in common, the preceding provisions
shall apply only to the part owned in common.

Acts of Administration or Management:
Those . . .
1. That do not involve an alteration;
2. That may be renewed from time to time;
3. That have transitory effects;
4. That do not give rise to a real over the thing owned in common;
5. Which even if called an alteration, do not affect the substance or nature of the thing;
6. For the common benefit of all the co-owners and not for only one or some of them.

Q: How do you determine the majority of the co-owners? What is the effect if a co-owner desires to make an improvement on the property, but
he cannot secure the consent of the majority?

To constitute a majority, the resolution must be approved by the co-owners who represent the controlling interest in the object of the community
property (Art.492). 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 (Art.492)

Q: Who has the right of administration of the property owed in common?

The management of the property owned in common lies, in the first place, in the co-owners themselves. In this management, the majority of
interest control and their decisions are binding upon the minority. However, the administration may be delegated by the co-owners to one or more
persons, whether co-owners or not. In such case, the powers and duties of such administrators shall be governed by the rules on agency. 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, may order the appointment of the administrator.

Art. 493 - Each co-owner shall the full ownership of his part and 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 allotted to him in the division upon the
termination of the co-ownership.

Rules Regarding the Ideal Share:

1. Each co-owner has full ownership of his part, and of his share of the fruits and benefits.
2. And therefore, he may alienate, assign, or mortgage his (ideal) share (not one wit boundaries).

Art. 494 - No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time the partition of the thing owned
in common, 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.

When a Co-owner May Not Successfully Demand Partition:
1. If by agreement (for a period not exceeding 10 years), partition is prohibited.
2. When partition is prohibited by a donor or testator
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 co-owners,
who shall indemnify the others or it will be sold, and the proceeds distributed.
5. When the legal nature of the common property does not allow partition.

Prohibition to Partition Because of an Agreement:
1. The period must not extend to more than 10 years (Art.494)
2. If it exceeds 10 years, the stipulation is valid only insofar as the first 10 years are concerned.
3. There can be an extension but only after the original period has expired.
4. After the first extension, as long as for each extension, the period of 10 years is not exceeded.

Q: When is the partition of community property at the instance of a co-ownership not allowed?

The partition of the community property is not allowed in the following cases:

1. When the co-owners have agreed to keep the thing undivided for a certain period of time, not exceeding ten years (Art.494,par.2)
2. When it is prohibited by the donor or testator for a period which shall not exceed 20 years, if the thing was acquired either by donation or
succession (Art.494,par.3)
3. When it is prohibited by law, such as in the case of party walls and the family home (Art.494,par.4)
4. When to do so would render the thing unserviceable for the use for which it is intended, although the co-ownership may still be terminated in
accordance with Art. 498 of the NCC (Art.495)

Art. 495 - Notwithstanding the provisions of the preceding article, the co-owners cannot demand 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.


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.

Classification of Various Kinds of Partition:
From the viewpoint of cause: 1. Extrajudicial

2. Judicial
From the viewpoint of 1. Provisional or temporary
permanence:
2. Permanent

From the viewpoint of subject 1. Partition of real property

matter:
2. Partition of personal property

From the viewpoint of forms and 1. Partition in a judicial decree

solemnities:
2. Partition duly registered in the
Registry of Property

3. Partition in a public
instrument

4. Partition in a private
instrument

5. Oral partition

ü For partition to be valid:
1. The decedent left no will
2. The decedent left no debts, or if there were debts left - all had been paid;
3. The heirs and liquidators are all of age, or if they are minors, the latter are represented by their judicial guardian or legal
representatives;
4. The partition was made by means of a public instrument or affidavit duly fulfilled with the Register of Deeds.

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.

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

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.

ü Both real and personal rights are protected.
ü All those who did not in any way participate or intervene in the partition are considered “third persons”

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.

Effects of Partition:
1. Mutual accounting benefits received (A.500)
2. Mutual reimbursement for expenses (A.500)
3. Indemnity for damages in case of negligence or fraud. (A.500)
4. Reciprocal warranty for defects of title and quality (A.501)
5. Each former co-owner is deemed to have had exclusive possession of the part allotted to him for the entire period during which the co-
possession lasted. (A.543)
6. Partition confers upon each, the exclusive title over his respective share. (A.1091)

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 co-owners.

Q: How may co-ownership be terminated or extinguished?

Co-ownership may be terminated by:
1. The merger or consolidation in one of the co-owners of all the shares of the other co-owners;
2. The destruction or loss of the thing or right owned in common;
3. Prescription in favor of a third person or a co-owner;
4. Partition of the property owned in common.