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LAPINID
RIGHTS OF A CO-OWNER AND ITS LIMITATIONS A co-owner has an absolute ownership of his
EXTENT OF THE RIGHT OF A CO-OWNER undivided and pro-indiviso share in the co-owned
A co-owner is an owner not only to the part that property. He has the right to alienate, assign and
pertains to him but also of the entire co-owned property. mortgage it, even to the extent of substituting a third
Being the owner of the entire co-owned property, a co- person in its enjoyment provided that no personal
owner can exercise all the attributes of ownership with rights will be affected. This is evident from the Article
respect to the entire property. In exercising his 493 Civil Code.
attributes of ownership, it may conflict with the rights of
the other co-owners. A co-owner is an owner of the whole and over the
whole he exercises the right of dominion, but he is at
LIMITATIONS the same time the owner of a portion, which is truly
While the co-owner has rights over the entire co-owned abstract. Hence, his co-owners have no right to
property, he may use the co-owned property only: enjoin a co-owner who intends to alienate or
1. For the purpose for which it is intended substitute his abstract portion or substitute a third
2. Without prejudice to the interests of the co- person in its enjoyment.
ownership and
3. Without preventing others from making use A co-owner has an absolute right to share his undivided
thereof according to their own rights share even if the act of selling is an act of alteration.
Purpose for which it is intended ALTERATION
The co-owner should use the co-owned property in It is an act of an alteration because you will be causing
accordance with the agreement he has with his co- the transfer of ownership rights.
owners, if there is any.
Rule of co-ownership regarding an act of
If there is none, that use for which it is ordinarily alteration:
adapted according to its nature (e.g. house only for • Must be concurred in by all co-owners.
living and not to be used as a factory) or use to which it • Otherwise, alteration would be illegal and would
has been previously devoted.
thus be nullified.
Illustration: Qualification to the rule:
There is an existing agreement regarding rental of a
• If the co-owner would sell his undivided (?) share, it
commercial building. If one of the co-owners would use
is an act of alteration.
a portion of the commercial building, he must pay the • If the co-owner would sell his undivided share, that
appropriate rentals.
is allowed by law pursuant to Article 493.
If there is no agreement as to how the property should Legal effects of the sale of an undivided share:
be used, we go by the nature of the property. A co-
When a co-owner effects the sale of his undivided share,
owner must use a co-owned property in accordance with
he is not selling a particular portion of the co-owned
the use for which that property is ordinarily adopted.
property. He is selling only his undivided interest, which
pending partition, is something that is abstract.
If it is an ancestral residential house, the co-owner will
use it only for residential purposes. He cannot insist to
The buyer of that selling co-owner, cannot insist that
use it or a portion thereof for commercial purposes. what is bought is a specific portion because technically
Such insistence would violate the rule pertaining to the
upon entering into a contract of lease [sale] with that
limitations on the exercise of his right of ownership.
co-owner, what is bought is his interest in the co-
ownership.
RIGHT TO SELL UNDIVIDED SHARE
Art. 493. Each co-owner shall have the full Therefore, the buyer needs to await the result of the
ownership of his part and of the fruits and benefits partition before he can claim a specific portion in that
pertaining thereto, and he may therefore alienate, co-owned property.
assign or mortgage it, and even substitute another
person in its enjoyment, except when personal rights Validity of the sale by a co-owner:
are involved. But the effect of the alienation or the The sale is valid even if technically the subject matter is
mortgage, with respect to the co-owners, shall be his interest in the co-ownership and not a specific
limited to the portion, which may be allotted to him portion of the property.
in the division upon the termination of the co-
ownership. Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
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RIGHT TO BRING SUIT IN BEHALF OF THE OTHER
CO-OWNERS Qualification to the rule allowing filing of suit by
one co-owner without participation of other co-
CARANDANG v. HEIRS OF DE GUZMAN
owners
In this connection, Article 1811 of the Civil
Code provides that: ADLAWAN v. ADLAWAN
For a case to prosper, even if filed only by one co-
"[a] Partner is a co-owner with the other partners of owner, that suing co-owner must recognize the
specific partnership property." existence of the co-ownership. In other words, on
the face of the allegations of the complaint, it must
Taken with the presumption of the conjugal nature of be clear and apparent that he is bringing it for and in
the funds used to finance the four checks used to behalf of the other co-owners.
pay for petitioners' stock subscriptions, and with the
presumption that the credits themselves are part of If on the face of the complaint the suing co-owner
conjugal funds, Article 1811 makes Quirino and disowns the existence of the co-ownership, he cannot
Milagros de Guzman co-owners of the alleged credit. later on backtrack and say that he is bringing it for
and behalf of the co-owners for the purpose of
Being co-owners of the alleged credit, Quirino and saving his case from eventual dismissal.
Milagros de Guzman may separately bring an action
for the recovery thereof. In the fairly recent cases RIGHT TO BRING SUIT
of Baloloy v. Hular and Adlawan v. Adlawan, we
RESUENA v. CA
held that, in a co-ownership, co-owners may bring
Article 487 of the Civil Code is a categorical and an
actions for the recovery of co-owned property
unqualified authority in favor of respondent to evict
without the necessity of joining all the other co-
petitioners from the portions of Lot No. 2587. This
owners as co-plaintiffs because the suit is presumed provision is a departure from Palarca v. Baguisi, which
to have been filed for the benefit of his co-owners. held that an action for ejectment must be brought by all
the co-owners. Thus, a co-owner may bring an action to
exercise and protect the rights of all. When the action is
General Rule:
brought by one co-owner for the benefit of all, a
ART. 487. Any one of the co-owners may bring an favorable decision will benefit them; but an adverse
action in ejectment. decision cannot prejudice their rights.
ADLAWAN v. ADLAWAN
However, this is qualified by the provision of the Civil Petitioner cannot validly maintain the instant action considering
Code in regard to the right of a co-owner in bringing a that he does not recognize the co-ownership flowing from
suit for and in behalf of the co-owners. This is allowed succession to the property of his father. There is no merit in
petitioner's claim that he has the legal personality to file the
by the Civil Code. present unlawful detainer suit because it would benefit not only
him but also his alleged co-owners. However, petitioner forgets
Civil Code is very clear in stating that any one of the co- that he filed the instant case to acquire possession of the property
owners may bring an action in ejectment. With the use and to recover damages. If granted, he alone will gain possession
of the lot and benefit from the proceeds of the award of damages
of the word “ejectment” it refers to all real actions to to the exclusion of the heirs of Graciana.
recover ownership and possession of a co-owned
property. The matter about impleading an indispensable
party becomes merely a procedural matter.
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RULES ON WHO DECIDES THE FOLLOWING: OLD RULE
1. Acts of Preservation Co-owner may renounce his whole interest, and pertains
2. Acts of Administration to exemption in being required to contribute to future
3. Acts of Alteration expenses. if irenounce niya iyang whole interest, dili na siya mo bayad
for future expenses
These are matters that normally confront the co-owners CRITICISM TO THE NEW RULE
while the co-ownership exists. When a co-owner from whom a contribution is asked
renounces, will that exempt him from claims that may be
EXPENSES OF PRESERVATION ETC. interposed by creditors?
This is more of a responsibility of a co-owner in regard Example: Renunciation of a portion of interest in
to expenses of preservation. co-ownership (Tolentino)
a. This is dacion en pago, subrogation, etc.
Expenses of preservation are such as would be b. Since this renunciation pertains to a debt
indispensable for the continued existence of the thing. already incurred, consent of the other co-owners
is required such as on the following matters:
ART. 488. Each co-owner shall have a right to valuation of the share
compel the other co-owners to contribute to the c. Effect on creditors (third party): Can the co-
expenses of preservation of the thing or right owned owner exempt himself to pay his share of the
in common and to the taxes. Any one of the latter expenses to the creditor simply by renouncing
may exempt himself from this obligation by an equivalent portion of his share in the co-
renouncing so much of his undivided interest as may ownership?
be equivalent to his share of the expenses and taxes.
No such waiver shall be made if it is prejudicial to the No. This cannot be done by a co-owner or cannot put
co-ownership this up as a defense because this constitutes novation by
change of debtor since he will be exempting himself
from liability. Thus, the debtors now would be the
Renunciation remaining co owners. This set-up requires consent of
Only leeway to a co-owner here is that if he does not creditor to be valid pursuant to the law on Obligations
want to contribute, he may renounce so much of his and Contracts.
undivided interest as may be equivalent to his share of
the expenses and taxes. Take note of these observations.
The principle in the previous cases did not find Rule 69 (ROC, as amended by 1997 Rules of
application in instances as ITCAB. Civil Procedure)
Section 1. Complaint in action for partition of real
An act equivalent to demand for partition estate – a person having the right to compel the
partition of real estate may do so as provided in this
AGUILAR v. CA Rule, setting forth in his complaint the nature and
extent of his title and an adequate description of the
In fairness to petitioner, respondent should pay a
real estate of which partition is demanded and
rental of P1,200.00 per month, with legal interest
joining as defendants all other persons interested in
from the time the trial court ordered him to vacate,
the property.
for the use and enjoyment of the other half of the
property appertaining to petitioner. When petitioner
Section. 2. Order for partition, and partition, by
filed an action to compel the sale of the property and
agreement thereunder – If after the trial the court
the trial court granted the petition and ordered the
finds that the plaintiff has the right thereto, it shall
ejectment of respondent, the co-ownership was
order the partition of the real estate among all the
deemed terminated and the right to enjoy the
parties in interest. Thereupon the parties may, if they
possession jointly also ceased. Thereafter, the
are able to agree, make the partition among
continued stay of respondent and his family in the
themselves by proper instruments of conveyance,
house prejudiced the interest of petitioner as the
and the court shall confirm the partition so agreed
property should have been sold and the proceeds
upon by all the parties, and such partition, together
divided equally between them. To this extent and
with the order of the court confirming the same, shall
from then on, respondent should be held liable for
be recorded in the registry of deeds of the place in
monthly rentals until he and his family vacate.
which the property is situated.
This addresses the question on how may a demand for
partition be made. A final order decreeing partition and accounting may
be appealed by any party aggrieved thereby.
Normally it is done by a simple oral manifestation or
through a demand letter addressed to other co-owners, Partition of a co-owned property or co-owned thing may
asking for the partition of the thing. either be done extrajudicially or judicially in which case
the proceeding will be governed primarily by Rule 69 of
Still another mode of making a formal demand for the ROC.
partition is when you file a formal action in court to
compel the sale of the property, as ITCAB. The filing of a petition for partition pursuant to Rule 69
should presuppose that there is an existing co-
A civil action was filed to compel you to submit to ownership.
partition. Are you liable to pay rentals for your act of
exclusively possessing the property even after an action
Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
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Policy regarding the demand to ask for partition 3. Whenever the thing is essentially indivisible and the
co-owners cannot agree that it be allotted to one of
QUINTOS v. NICOLAS them who shall indemnify the others, it shall be sold
From the above-quoted provision, it can be gleaned and its proceeds distributed (Art 498)
that the law generally does not favor the retention of
co-ownership as a property relation, and is interested LEGAL CONSEQUENCES OF PARTITION
instead in ascertaining the co-owners' specific shares
so as to prevent the allocation of portions to remain ART. 499. The partition of a thing owned in
perpetually in limbo. Thus, the law provides that common shall not prejudice third persons, who shall
each co-owner may demand at any time the partition retain the rights of mortgage, servitude or any other
of the thing owned in common. real rights belonging to them before the division was
made. Personal rights pertaining to third persons
Between dismissal with prejudice under Rule 17, Sec. against the co-ownership shall also remain in force,
3 and the right granted to co-owners under Art. 494 notwithstanding the partition.
of the Civil Code, the latter must prevail. To construe
otherwise would diminish the substantive right of a ART. 500. Upon partition there shall be a mutual
co-owner through the promulgation of procedural accounting for benefits received and
rules. Such a construction is not sanctioned by the reimbursements for expenses made. Likewise, each
principle, which is too well settled to require citation, co-owner shall pay for damages caused by reason of
that a substantive law cannot be amended by a his negligence or fraud.
procedural rule.
ART. 501. Every co-owner shall, after partition, be
liable for defects of title and quality of the
Partition is a right, which can be demanded by a co- portion assigned to each of the other co-owners.
owner anytime, consistent with the principle that the law
does not generally favor the retention of co-ownership. By partition, this includes extrajudicial (oral).
Validity of parol (oral) partition 499. If a third person has a right of mortgage or enjoys
a servitude or any other real right over a co-owned
QUIMPO v. ABAD property, such third person continues to enjoy that right
Partition may be inferred from circumstances even after partition because partition of a thing is not a
sufficiently strong to support the presumption. Thus, mode of extinguishing rights.
after a long possession in severalty, a deed of
partition may be presumed. 501. What do we mean by this? For example, a property
is adjudicated to one co-owner that that property has
A parol partition may also be sustained on the defects of title (could not have been issued a certificate
ground that the parties thereto have acquiesced in of title because it formed part of a public land). This
and ratified the partition by taking possession in prejudiced co-owner is entitled to demand from his other
severalty, exercising acts of ownership with respect co-owners for contribution to make up for that property
thereto, or otherwise recognizing the existence of the over which he was deprived of.
partition
PRESCRIPTION
There should be no question about the validity of the (AS A MODE OF TERMINATING CO- OWNERSHIP)
oral partition. This is not among the transactions ART. 494 No prescription shall run in favor of a co-
covered by the Statute of Frauds. In other words, even if owner or co- heir against his co-owners or co-heirs
the partition was made orally, it is valid and enforceable. so long as he expressly or impliedly recognizes the
co-ownership.
LIMITATIONS TO THE RIGHT TO ASK FOR
PARTITION
This is the general rule. If only one co-owner has been
1. Nevertheless, an agreement to keep the thing
in possession of a co-owned property, that circumstance
undivided for a certain period of time, not exceeding
will not give rise to prescription in favor of that co-owner
ten years shall be valid. This term may be extended
in actual possession because the theory is that his
by a new agreement. (2nd par, Art 494)
possession is for and in behalf of his co-heirs, co-
2. A donor or testator may prohibit partition for a
ownership being a form of a trust relationship.
period, which shall not exceed twenty years. (3rd
par, Art 494)
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repudiated the co-ownership, which would warrant the
MARIANO v. DE VEGA prescriptive period to run.
"No prescription shall run in favor of a co-owner or
co-heir against his co-owners or co-heirs so long as Rationale: The co-owners’ relationship is fiduciary in
he expressly or impliedly recognizes the in view of character. No co-owner may invoke is sole possession a
their lack of a clear repudiation of the co-ownership, basis to claim prescription later on.
duly communicated to the petitioners (the other co-
owners), private respondents cannot acquire the Prescription (in favor of a co-owner) after
shares of the petitioners by prescription. repudiation of co-ownership
DE LIMA v. CA
The record in the Office of the Assessor is not the
In other words, no prescription shall run in favor of a co-
sufficient repudiation and communication
owner against his co- owners or co-heirs so long as he
contemplated by the law. Neither may the Private expressly or impliedly recognizes the co-ownership (Del
respondents' possession of the premises militate Blanco v. Intermediate Appellate Court, No. 72694,
against Petitioners' claim. After all, co-owners are December 1, 1987, 156 SCRA 55).
entitled to be in possession of the premises. The
existence of the co-ownership here argues against However, when one of the co-owners claims that he is the
the theory of implied trust, for then a co-owner absolute and exclusive owner of the properties and denies
possesses co- owned property not in behalf of the the others any share therein, the question involved is no
other co-owners but in his own behalf. longer one of partition but of ownership (De Castro v.
Echarri, 20 Phil. 23; Bargayo v. Camumot, supra; De los
Santos v. Santa Teresa, 44 Phil. 811). In such case, the
imprescriptibility of the action for partition can no longer be
Registration in one’s name is not necessarily invoked or applied when one of the co-owners has
repudiation adversely possessed the property as exclusive owner for a
period sufficient to vest ownership by prescription.
VDA. DE FIGURACION v. FIGURACION-
GERILLA Evidence shows that TCT No. 2744 in the name of the legal
The act of Hilaria and Felipa in effecting the heirs of Lino Delima, represented by Galileo Delima, was
registration of the entire Lot No. 707 in their names cancelled by virtue of an affidavit executed by Galileo
thru TCT No. 42244 did not serve to effectively Delima and that on February 4, 1954, Galileo Delima
repudiate the co-ownership. The respondent built her obtained the issuance of a new title in Ms name numbered
house on the eastern portion of the lot in 1981 TCT No. 3009 to the exclusion of his co-heirs.
without any opposition from the petitioners. Hilaria
The issuance of this new title constituted an open and clear
also paid realty taxes on the lot, in behalf of the
repudiation of the trust or co- ownership, and the lapse of
respondent, for the years 1983-1987. These events ten (10) years of adverse possession by Galileo Delima
indubitably show that Hilaria and Felipa failed to from February 4, 1954 was sufficient to vest title in him by
assert exclusive title in themselves adversely to prescription
Emilia. Their acts clearly manifest that they
recognized the subsistence of their co-ownership with
respondent Emilia despite the issuance of TCT No. SC took note of the fact that there was already
42244 in 1962. repudiation of co-ownership.
The certificate of title or tax declaration in the name of The execution of this document stating that he is the
just one co-owner is by itself not sufficient to prove that only owner of the property in question is already a form
this co-owner whose name appears in those document of repudiation of the co-ownership.
SALVADOR v. CA
Specific findings of fact of the court There is clear repudiation of a trust when one who is an
apparent administrator of property causes the cancellation
PANGAN v. CA of the title thereto in the name of the apparent
Noticeably absent here is a categorical assertion by the beneficiaries and gets a new certificate of title in his own
petitioners of their exclusive right to the entire property name.
that barred her own claim of ownership of one-half
thereof nor is there any explanation as to why they said It is only when the defendants, alleged co-owners of the
she had no right to a share. If this trusting woman did property in question, executed a deed of partition and on
not immediately take legal action to protect her rights, it the strength thereof obtained the cancellation of the title in
was simply because of forbearance toward her nephews the name of their predecessor and the issuance of a new
one wherein they appear as the new owners of a definite
and nieces, let alone the fact that there was really no
area each, thereby in effect denying or repudiating the
casus belli as yet that required her to act decisively.
ownership of one of the plaintiffs over his alleged share in
That legal provocation arose only when the petitioners
the entire lot, that the statute of limitations started to run
commenced the registration proceedings in 1965, and it for the purposes of the action instituted by the latter
was form that time she was required to act, as she did, seeking a declaration of the existence of the co- ownership
to protect her interests. and of their rights thereunder.|
The facts established did not establish a clear case of Here, this apparent administrator of property caused the
repudiation of co-ownership. cancellation of the title in the name of the other
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apparent beneficiaries. He was able to successfully EFFECT OF TRANSFER OF A UNIT
obtain a new certificate of title in his own name. These Sec. 5. Any transfer or conveyance of a unit or an
acts are deemed as sufficient proof of repudiation of co- apartment, office or store or other space therein, shall
ownership. include the transfer or conveyance of the undivided
interests in the common areas or, in a proper case, the
A case where prescription is not counted from membership or shareholdings in the condominium
issuance of the title corporations.
MARITEGUI v. CA
PARTITION OF CONDOMINIUM
It is true that registration under the Torrens system
Sec. 8. Where several persons own condominiums in a
is constructive notice of title, but it has likewise been
condominium project, an action may be brought by one
our holding that the Torrens title does not furnish a
or more such persons for partition thereof by sale of the
shield for fraud. It is therefore no argument to say
entire project, as if the owners of all of the
that the act of registration is equivalent to notice of
condominiums in such project were co-owners of the
repudiation, assuming there was one,
entire project in the same proportion as their interests in
notwithstanding the long-standing rule that
the common areas: Partition shall be made upon
registration operates as a universal notice of title."
showing that:
Inasmuch as petitioners registered the properties in 1. That three years after damage or destruction to the
their names in fraud of their co-heirs prescription can project which renders material part thereof unit for
only be deemed to have commenced from the time its use prior thereto, the project has not been rebuilt
private respondents discovered the petitioners' act of or repaired
defraudation (Adille vs. Court of Appeals, supra). 2. That damage or destruction to the project has
Hence, prescription definitely may not be invoked by rendered one-half or more of the units therein
petitioners because private respondents commenced untenantable and that condominium owners holding
the instant action barely two months after learning in aggregate more than thirty percent interest in the
that petitioners had registered in their names the lots common areas are opposed to repair or restoration
involved. of the project
3. That the project has been in existence in excess of
General rule: date of registration of the questioned
fifty years, that it is obsolete and uneconomic, and
document, in accordance with the principle of
that condominium owners holding in aggregate
constructive notice
more than fifty percent interest in the common
areas are opposed to repair or restoration or
Exception: ITCAB it was counted from the date of the
remodeling or modernizing of the project
discovery of the fraudulent act. This is a highly
4. That the project or a material part thereof has been
exceptional case. Cannot be cited as a judicial precedent
in all cases. condemned or expropriated and that the project is
no longer viable, or that the condominium owners
holding in aggregate more than seventy percent
CONDOMINIUM LAW (RA 4726)
Sec. 2. A condominium is an interest in real property interest in the common areas are opposed to
consisting of separate interest in a unit in a residential, continuation of the condominium regime
industrial or commercial building and an undivided 5. That the conditions for such partition by sale set
interest in common, directly or indirectly, in the land on forth in the declaration of restrictions, duly
which it is located and in other common areas of the registered in accordance with the terms of this Act,
building. A condominium may include, in addition, a have been met.
separate interest in other portions of such real property.
DECLARATION OF RESTRICTIONS
Sec. 4. The provision of this Act shall apply to property The owner of a project shall, prior to the conveyance of
divided or to be divided into condominiums only if there any condominium therein, register a declaration of
shall be recorded in the Registry of Deeds of the restrictions relating to such project, which restrictions
province or city in which the property lies and duly shall constitute a lien upon each condominium in the
annotated in the corresponding certificate of title of the project. The Register of Deeds shall enter and annotate
land, if the latter had been patented or registered under the declaration of restrictions upon the certificate of title
the Land Registration or Cadastral Acts, an enabling or covering the land included within the project, if the land
master deed. is patented or registered under the Land Registration or
Cadastral Acts.