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MODULE 6 TORES JR. v.

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.

Respondent's action for ejectment against petitioners is


Rule in Remedial Law qualified by Civil Code deemed to be instituted for the benefit of all co-owners
There is a rule in procedural law or remedial law that for of the property since petitioners were not able to prove
a case to prosper, all indispensable parties must be that they are authorized to occupy the same.
impleaded.
The General Rule under Art. 487 was applied in this case
Applying this remedial law principle, technically all the even in the light of the objection that other co-owners
co-owners are indispensable parties and therefore all of should have been impleaded because the suing co-
them should be impleaded in the case. owner recognized the existence of the co-ownership and
such recognition was clearly inferred based on the
If an indispensable party is not impleaded, the court allegations in the complaint.
would have no jurisdiction to proceed and any judgment
that it may render without the presence of an There must be recognition of the co-ownership on
indispensable party would be void. the part of the suing co-owner

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.
Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
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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.

Renunciation must be voluntary ACT OF ADMINISTRATION


This matter regarding renunciation of interest in co- • Refers to the enjoyment of the thing and are of a
ownership cannot be compelled. This is voluntary on the transitory character.
part of the co-owner from whom the demand for • Decisions pertaining to improvement or
contribution is made. embellishment of the thing owned in common for
the purpose of better enjoyment.
Limitation:
Cannot execute this waiver if prejudicial to the co- Rules:
ownership. • Can be decided by majority of the co-owners and
the majority is qualified to mean as financial
Illustration majority
“Any one of the latter may exempt himself from this • Thus, this is majority in regard to interest, not just
obligation by renouncing so much of his undivided mere numerical majority.
interest as may be equivalent to his share of the
expenses and taxes.” ACTS OF ALTERATION
• A, B, and C owners of property worth 3M. • Act by virtue of which a co-owner, in opposition to
• 1M respective interests. the express agreement, if there is any, or, in default
• Expenses worth 500,000. thereof, to the tacit agreement of all the co-owners,
and violating their will, changes the thing from that
A, B, or C may renounce up to 500,000 of the share of state in which the others believe it should remain or
expenses. withdraws it from the use to which they wish it to be
intended.
Note: he cannot be required to renounce, option is upon • Affects the substance of the thing
him.
Ang expenses nga wala niya bayari kay ideduct sa
iyahang undivided interest
Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
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Rules: 1. When lease is recorded with the Registry of
• If the act would qualify as an act of alteration, it Property, it becomes alteration (it is not a mere act
must be concurred by or consented to expressly or of administration)
tacitly because this act is akin to an act of “strict”
ownership. Art. 1878 (8). To lease any real property to another
• If alteration is unauthorized, act is illegal. Erring co- person for more than one year
owner may be compelled to undo what has been
done. 2. Lease of immovable property: mere majority cannot
• Erring co-owner shall likewise be liable for losses or lease real property for more than one year.
damages
EFFECT OF AN ILLEGAL ALTERATION
Examples: 1. Co-owner will lose what he has spent
1. Sale, donation, or mortgage of the entire 2. Demolition can be compelled
property 3. Liability for loss and damages
2. Sale, donation or mortgage of a part of the 4. Whatever benefits belong to the co-ownership
property but with definite boundaries
3. Voluntary easement If there is an alteration not concurred in or consented to
4. Lease of real property by all co-owners, even if benefits redound to the co-
5. Construction of a house on a lot owned in ownership, the co-owner cannot ask for reimbursement
common
6. Contracts of long duration Principles:
1. Mere tolerance on the part of the co-owners
Sale, donation or mortgage of the entire property cannot legalize the change in the use of a thing
Qualification: from that intended by the parties
Must be the entire property because sale of a part of a 2. No prejudice to co-ownership: if co-owners
co-owned property is valid even if the sale is an act of agreed to lease, co-owners cannot use without
alteration paying rent

Voluntary Easement An act of alteration includes alteration of the substance


Rule: of the thing. Thus, when one co-owner alters the use of
This is an agreement to grant a right of way in favor of a thing from that intended by the parties, if there is no
neighboring lots. If the property traversed by the right of immediate objection from the co-owners, it should not
way is co-owned, it cannot be decided by one co-owner be outrightly interpreted to mean that there was consent
since this is an act of alteration. on the part of the co-owners. Take note of Principle 1.

Lease of Real Property CASES ON RIGHT OF A CO-OWNER (ALTERATION)


Must be qualified because leases of short duration (less
than one year) and those not required by the parties to Giving consent to a third person to possess a co-
be recorded in the Registry of Property are mere acts owned property is an act of alteration
of administration
CRUZ v. CATAPANG
If the duration would exceed 1 year or if less than 1 year
As to the issue of whether or not the consent of one
but recorded in the Registry of Property then this
co-owner will warrant the dismissal of a forcible entry
becomes an act of alteration, which would require the
case filed by another co-owner against the person
unanimous consent of all co owners.
who was given the consent to construct a house on
the co-owned property, we have held that a co-
Construction of a house on a lot owned in
owner cannot devote common property to his or her
common
exclusive use to the prejudice of the co-ownership. In
If you consented to this and such consent was given to
our view, a co-owner cannot give valid consent to
a stranger, this is an act of alteration (dili co-owner ang
another to build a house on the co-owned property,
ni construct).
which is an act tantamount to devoting the property
to his or her exclusive use.
LEASE OF IMMOVABLE PROPERTY

Art. 1638. 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.
Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
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This involved a co-owner who gave consent to a third While this was a co-owned property, the certificate of
person to possess a co-owned property. When this was title only indicated the name of the selling co-owner. A
discovered by the co-owners, they filed a case for buyer who relies on the face of the certificate of title
ejectment against this third person. The third person put indicating only the name of the widow who is
up as a defense that his entry into the premises was not supposedly only a co-owner and the buyer relied in good
attributable to any force, intimidation, strategy, stealth faith on what appears on the certificate of title, a
that are the grounds for which one would file a case for purchaser acquires a valid title of the land even as
forcible entry. against the heirs of the deceased spouse. The buyer’s
title is valid not only to the share pertaining to the
The SC ruled there was a valid cause of action for widow, but the entire co-owned property [including
forcible entry, even in spite of the existence of the shares of the other co-owners who are heirs of the
consent given by that one co-owner. This act of giving deceased spouse].
consent to possess a co-owned property, which consent
is given only by one of the co-owners is an act of Sale of Entire Portion
alteration. Thus, this is not valid because an act of
alteration must be agreed and concurred in unanimously SEGURA v. SEGURA
by all the other co-owners. Thus, no valid defense for When Amojido secured the registration of the land in
the suit for forcible entry and the SC characterized this his name following the deed of sale executed in his
as a form of entry by strategy. favor by the parties to the extrajudicial partition, his
certificate of title carried an express reservation of
Unauthorized Sale v. Purchaser in Good Faith whatever rights might pertain to other heirs. This
annotation constituted an acknowledgment of the
SPS. CRUZ v. LEIS possibility that a portion of the land might not belong
It is conceded that, as a rule, a co-owner such as to him and the commitment that he would be holding
Gertrudes could only dispose of her share in the such part as impliedly conveyed to him in trust by
property owned in common. Unfortunately for private and for its true owners. However, when Amojido
respondents, however, the property was registered in himself sold the land to Mirope Mascareñas vda. De
TCT No. 43100 solely in the name of “Gertrudes Elison on March 13, 1953, the transfer certificate of
Isidto, widow.” Where a parcel of land, forming part title issued in her name no longer carried the said
of the undistributed properties of the dissolved encumbrance. By deletion of this annotation, Mirope,
conjugal partnership of gains is sold by a widow to a as the new transferee, repudiated as of the date of
purchaser who merely relied on the face of the registration, the claim of the other heirs to their
certificate of title thereto, issued solely in the name shares in the property.
of the widow, the purchaser acquires a valid title to
the land even as against the heirs of the deceased This is an exception to the rule that the sale of an entire
spouse. The rationale for this rule is that “a person co-owned property is not valid if the one selling is only
dealing with registered land is not required to go one co-owner or the sale is not done by all co-owners.
behind the register to deal with the condition of the
property.” SC upheld the right of an innocent purchaser who
merely relied on the face of the title as against the other
co-owners who did not consent to the sale.
This involved an unauthorized sale of the entire property
by one co-owner.
RIGHT OVER THE IDEAL SHARE
General Rule:
Art. 493. Each co-owner shall have the full
(Unauthorized Sale)
ownership of his part and of the fruits and benefits
[While a co-owner can validly sell is undivided sale]
pertaining thereto, and he may therefore alienate,
when a sale made by one co-owner pertains to the
assign or mortgage it, and even substitute another
entire co-owned property, it is invalid because it exceeds
person in its enjoyment, except when personal rights
the portion pertaining to the selling co-owner. It is valid
are involved. But the effect of the alienation or the
only insofar as his interest is concerned.
mortgage, with respect to the co-owners, shall be
limited to the portion, which may be allotted to him
Exception:
in the division upon the termination of the co-
(Purchaser in Good faith)
ownership.
Here, the SC validated the sale of the entire co-owned
property since there is a peculiarity ITCAB. Sale by a co-owner of his undivided share/interest is a
valid transaction.

Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio


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EFFECT OF SALE BY A CO-OWNER A co-owner does not lose his right to the part ownership
of a co-owned property when a share is mortgaged by
PAULMITAN v. CA another co-owner if there is no knowledge much less
From the foregoing, it may be deduced that since a consent on his part.
co-owner is entitled to sell his undivided share, a sale
of the entire property by one co-owner without the Trust relationship is established
consent of the other co-owners is not null and void
[with respect to the rights of the selling co-owner]. NUFABLE v. NUFABLE
When the subject property was mortgaged by Angel
However, only the rights of the co-owner-seller are Custodio, he had no right to mortgage the entire
transferred, thereby making the buyer a co-owner of property but only with respect to his ¼ pro indiviso
the property. share as the property was subject to the successional
rights of the other heirs of the late Esdras. In case of
It is valid with respect to rights of the selling co-owner foreclosure, a sale would result in the transmission of
but it is void with respect to the rights of the non- title to the buyer, which is feasible only if the seller can
consenting co-owners. be in a position to convey ownership of the things sold.
And in one case, it was held that a foreclosure would be
Right of a co-owner whose interest in the co- ineffective, unless the mortgagor has title to the
property to be foreclosed. Therefore, as regards the
ownership was sold without authority
remaining ¾ pro indiviso share, the same was held in
SANCHEZ v. CA trust for the party rightfully entitled thereto, who are
Although assigned an aliquot but abstract part of the the private respondents herein. Pursuant to Article 1451
of the Civil Code, when land passes by succession to
property, the metes and bounds of petitioner’s lot
any person and he causes the legal title to be put in the
has not been designated. As she was not a party to
name of another, a trust is established by implication of
the Deed of Absolute Sale voluntarily entered into by
law for the benefit of the true owner. Likewise; under
the other co-owners, her right to 1/6 of the property
1456 of the same Code, if property is acquired through
must be respected. Partition needs to be effected to mistake or fraud, the person obtaining it is, by force of
protect her right to her definite share and determine law, considered a trustee of an implied trust for the
the boundaries of her property. Such partition must benefit of the person from whom the property comes.
be done without prejudice to the rights of private
When a sale or dispossession is made by one co-owner
respondent Virginia Teria as buyer of the 5/6 portion
without the consent of the others, the shares pertaining
of the lot under dispute.
to those who did not consent are technically held in trust
by this selling co-owner. There can be no valid transfer
with respect to those shares of the non-consenting co-
If you did not consent to the sale, your share is not owners.
affected in the sale made by your other co-owners.
To sum it up, an act of alteration like sale or mortgage
EFFECT OF AN UNAUTHORIZED ACT OF etc. that are denominated as acts of strict ownership
ALTERATION can only be effected legally if there is consent by
all co-owners. Absent the concurrence or unanimous
NUFABLE v. NUFABLE
consent of all co-owners, such act of alteration is invalid.
Well-entrenched is the rule that a co-owner can only
alienate his pro indiviso share in the co-owned property.
SALE OF A CO-OWNED PROPERTY (CASES)
Article 493 of the CC spells out the rights of co-owners
over a co-owned property. Pursuant to said Article, a DEL BANCO v. IAC
co-owner shall have full ownership of his part and of the A co-owner cannot, without the conformity of the other
fruits and benefits pertaining thereto. He has the right co-owners or a judicial decree of partition issued
to alienate, assign of mortgage it and even substitute pursuant to the provision of Rule 69 of the Rules of
another person in its enjoyment. As a mere part owner, Court, adjudicate to himself in fee simple a determinate
he cannot alienate the shares of the other co-owners. portion of the lot owned in common, as his share
The prohibition is premised on the elementary rule that therein, to the exclusion of other co-owners. It is a basic
“no one can give what he does not have.” Moreover, principle in the law of co-ownership both under the
respondents stipulated that they were not aware of the present Civil Code as in the Code of 1889 that no
mortgage by petitioners of the subject property. This individual co-owner can claim any definite portion
being the case, a co-owner does not lose his part thereof. It is therefore of no moment that some of the
ownership of a co-owned property when his share is co-owners have succeeded in securing cadastral titles in
mortgaged by another co-owner without the former’s their names to some portions of the Island occupied by
knowledge and consent as in the case at bar. It has them.
likewise been ruled that the mortgage of the inherited
property is not binding against co-heirs who never Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
! benefited.
This is an affirmation of the principle that pending Effect of a sale made by a co-owner
partition, what the co-owner has is only abstract or ideal
share. Some authors would refer to it as the spiritual SPS. DEL CAMPO v. CA
share pertaining to the co-owner. That being the case, Based on the principle that “no one can give what he
does not have,” Salome, Consorcia and Alfredo could
no individual co-owner can claim any definite portion of
not legally sell the shares pertaining to Soledad since a
the co-owned property.
co-owner cannot alienate more than his share in the co-
ownership. We have ruled many times that even if a co-
Sale of a specific portion prior to partition is an owner sells the whole property as his, the sale will
act of alteration and must be consented by all co- affect only his own share but not those of the other co-
owners owners who did not consent to the sale. Since a co-
CABRERA v. YSAAC owner is entitled to sell his undivided share, a sale of
The undivided interest of a co-owner is also referred to the entire property by one co-owner will only transfer
as “the ideal or abstract quota” or “proportionate the rights of said co-owner to the buyer, thereby
share.” OTOH, the definite portion of the land refers to making the buyer a co-owner of the property.
specific metes and bounds of a co-owned property. To
If the co-owner sells the property as his, the sale is not
illustrate, if a ten-hectare property is owned equally by
necessarily invalid but its effect is only with regard to his share
10 co-owners, the undivided interest of a co-owner here
and would not adversely effect the other co-owners who did
is one hectare. The definite portion of that interest is not consent to the sale.
usually determined during judicial or extrajudicial
partition. After partition, a definite portion of the Sale of non-consenting co-owner will not be
property held in common is allocated to a specific co-
affected
owner. The co-ownership is dissolved and, in effect,
each of the former co-owners is free to exercise TORRES, JR. v. LAPINID
autonomously the rights attached to his or her Be that as it may, the compromise agreement failed to
ownership over the definite portion of the land. It is defeat the already accrued right of ownership of Lapinid
crucial that the co-owners agree to which portion of the over the share sold by Jesus. As early as 9 November
land goes to whom. 1997, Lapinid already became a co-owner of the property
and thus, vested with all the rights enjoyed by the other
co-owners. The judgment based on the compromise
Hence, prior to partition, a sale of a definite portion of
agreement, which is to have the covered properties sold, is
common property requires the consent of all co-owners
valid and effectual provided, as it does not affect the
because it operates to partition the land with respect to
proportionate share of the non-consenting party.
the co-owner selling his or her share. The co-owner or Accordingly, when the compromise agreement was
seller is already marking which portion should redound executed without Lapinid’s consent, said agreement could
to his or her autonomous ownership upon future not have affected his ideal and undivided share. Petitioners
partition. cannot sell Lapinid’s share absent his consent. Nemo dat
quod non habet—“no one can give what he does not
If there is no partition of the co-owned property, any have.”
attempted sale by a co-owner of a specific portion is an With respect to the shares pertaining to those who did not
act of alteration. For it to be a valid sale of a specific consent, such shares would not be adversely affected.
portion, the other co-owners must consent. Otherwise,
the sale would only be deemed as sale of a pro-indiviso REMEDY WHEN A CO-OWNER WITHHOLDS HIS
(undivided) share. The sale is valid only that it cannot CONSENT TO THE SALE OF THE ENTIRE
refer to a specific portion if there is no partition yet. Or, PROPERTY
if the pointing out of that specific portion is not
ARAMBULO v. NOLASCO
consented to by the other co-owners.
That a sale constitutes an alteration as mentioned in Article
491 is an established jurisprudence. It is settled that
Valid Sale of the Entire Portion because there was alterations include any act of strict dominion or ownership
de facto or factual partition and any encumbrance or disposition has been held
PAMPLONA v. MORETO implicitly to be an act of alteration. Alienation of the thing
by sale of the property is an act of strict dominion.
The title may be pro-indiviso or inchoate but the
However, the ruling that alienation is alteration does not
moment the co-owner as vendor pointed out its location
mean that a sale commonly of commonly owned real
and even indicated the boundaries over which the property is covered by the second paragraph of Article 491,
fences were to be erected without object, protest or such that if a co-owner withholds consent to the sale, the
complaint by the other co-owners, on the contrary they courts, upon a showing of a clear prejudice to the common
acquiesced and tolerated such alienation, occupation interest, may, mas adequate relief, order the grant of the
and possession. We rule that a factual partition or withheld consent. Such is the conclusion drawn by the trial
termination of the co-ownership, although partial, was court, and hinted at, if not relied upon, by the appellate
created, and barred not only the vendor but also his court.
heirs, private respondents herein from asserting as
against the vendees petitioners any right or title in
Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
! derogation of the deed of sale by vendor Moreto.
Selling of the entire co-owned property as repeatedly Take note of the underlined text. This is the correct
mentioned is an act of alteration. Being such, this must remedy that should have been resorted to rather than
be consented to by all co-owners. asking the court to compel the non-consenting co-owner
to give his consent.
The situation in this case was that almost all co-owners
agreed to sell the co-owned property except for one.
Considering that it is a sale of the entire co-owned
property, the sale would not be valid if there is only
even one who would object to the sale.

The consenting co-owners sought the relief of


compelling the other co-owner to give his consent.

SC said you cannot compel a co-owner to give his


consent and you cannot justify this relief by saying that
such withholding of consent is prejudicial to the co-
ownership.

Remedies provided for by the SC ITAB:


• Partition by sale
o The right to demand partition is a right Mortgage by a Spouse
pertaining to a co-owner. In cases where it
would be impracticable to make an actual HOMEOWNERS SAVINGS & LOAN BANK v. DAILO
division of a co-owned property such as when The basic and established fact is that during his lifetime,
the property is so small in area, the remedy to without the knowledge and consent of his wife, Marcelino
Dailo, Jr. constituted a real estate mortgage on the subject
be resorted to is:
property, which formed part of their conjugal partnership.
• Partition by selling the entire co-owned property and By express provision of Article 124 of the Family
there would be a division of the proceeds of the Code, in the absence of (court) authority or written
sale. consent of the other spouse, any disposition or
encumbrance of the conjugal property shall be void.
Take note of the suggested remedies of the SC here.
The aforequoted provision does not qualify with respect to
ARAMBULO v. NOLASCO the share of the spouse who makes the disposition or
Petitioners who project themselves as encumbrance in the same manner that the rule on co-
prejudiced co-owners may bring a suit for ownership under Article 493 of the Civil Code does. Where
partition, which is one of the modes of the law does not distinguish, courts should not distinguish.
extinguishing co-ownership. Article 494 of the Civil Thus, both the trial court and the appellate court are
Code provides that no co-owner shall be obliged to correct in declaring the nullity of the real estate mortgage
remain in the co-ownership, and that each co-owner on the subject property for lack of respondent's consent.
may demand at any time partition of the thing owned
in common insofar as his share is concerned. The husband and wife relationship is peculiar. This is not
governed by rules on co-ownership.
Corollary to this rule, Article 498 of the Civil Code
states that whenever the thing is essentially In co-ownership, if you are co-owner, you are owner of
indivisible and the co-owners cannot agree that it be the part as well as the whole. Being the owner of the
allotted to one of them who shall indemnify the part, you can sell, lease, mortgage etc., your undivided
others, it shall be sold and its proceeds accordingly share
distributed. This is resorted to (a) when the right to
partition the property is invoked by any of the co- With respect to spouses, they are not technically co-
owners but because of the nature of the property, it owners as would warrant the execution by one spouse
cannot be subdivided or its subdivision would without the consent of the other of any contracts as
prejudice the interests of the co-owners, and (b) the ITCAB.
co-owners are not in agreement as to who among
them shall be allotted or assigned the entire property This case involves a mortgage made by one spouse
upon proper reimbursement of the co-owners. This is without the consent of the other. This matter is primarily
the result obviously aimed at by petitioners at the governed by the Family Code rather than rules of co-
outset. As already shown, this cannot be done while ownership.
the co-ownership exists.
Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
!
In your family code, no act of encumbrance, disposition Agreement
can be validly made by one spouse without the consent An agreement is a valid mode of putting the thing in a
of the other spouse. In fact, any disposition or state of co-ownership for the meantime. If one of the
encumbrance, which would affect the conjugal property, parties would ask for partition and there is this
shall be deemed void. agreement, which still exists, the other co-owners may
validly refuse the partition.
TERMINATION OF CO-OWNERSHIP
The co-owner who demands partition cannot be granted
ART. 494. No co-owner shall be obliged to remain in the relief sought in view of the existence of this
the co-ownership. Each co-owner may demand at agreement.
any time the partition of the thing owned in common,
insofar as his share is concerned. Take note: if there is an agreement, there is a specific
duration for its validity. It must not exceed 10 years
The law frowns upon the perpetual state of co- although it may be extended by another agreement not
ownership. exceeding 10 years as well.

GENERAL RULE: Prohibition imposed by donor/testator


It is the right of the co-owner to ask for partition A donor can expressly stipulate in the deed of donation
anytime of the thing owned in common insofar as his that the thing donated shall not be partitioned. If there
share is concerned. are such stipulations, any demands relating to partition
will not prosper. Same thing will apply if a testator of the
How partition may be effected last will and testament imposes a prohibition to partition.
1. Extrajudicial partition – presupposes that the co-
owners will agree among themselves without However, there is a time limitation for the effectivity of
the intervention of the court and voluntarily this prohibition.
divide the property among themselves
2. Judicial partition - there is a specific provision in Time limit for the effectivity of the prohibition:
the ROC relating to partition. Any period imposed pursuant to a deed of donation or
last will and testament shall not exceed twenty years.
While it is the right of the co-owner to ask for partition
anytime, there are exceptions. If these exceptions apply, Partition is prohibited by law
they may pose a legal impediment for the demand of An example is a case of a conjugal partnership of
partition. property or absolute community. During the existence of
the marriage, the husband or wife cannot ask for
EXCEPTIONS: partition.

ART. 494. (Paragraphs 2-4) Prescription


It is not only through partition that co-ownership may be
Nevertheless, an agreement to keep the thing terminated. Prescription may either be in favor of a co-
undivided for a certain period of time, not exceeding owner or co-heir under certain circumstances or in favor
ten years, shall be valid. This term may be extended of a third person.
by new agreement.
OTHER CAUSES (TERMINATING CO-OWNERSHIP)
A donor or testator may prohibit partition for a 1. Merger (when one co-owner buys out the shares
period, which shall not exceed twenty years. of the other co-owners, he becomes the sole
and absolute owner of the thing)
Neither shall there be any partition when it is 2. Prescription in favor of 3rd person or to a co-
prohibited by law. owner
3. Destruction of the thing or loss of the right
No prescription shall run in favor of a co-owner or co- which is owned in common
heir against his co-owners or co-heirs so long as he 4. Partition
expressly or impliedly recognizes the co-ownership.

Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio


!
Redemption by co-owner does not terminate co- RIGHT OF LEGAL REDEMPTION
ownership
ART. 1619. Legal redemption is the right to be
PAULMITAN v. CA subrogated, upon the same terms and conditions
The redemption of the land made by Fansesa did not
stipulated in the contract, in the place of one who
terminate the co-ownership nor give her title to the entire
land subject of the co-ownership. While the records show acquires a thing by purchase or dation in payment, or
that petitioner redeemed the property in its entirety, by any other transaction whereby ownership is
shouldering the expenses therefor, that did not make him transmitted by onerous title. (1521a)
the owner of all of it. In other words, it did not put to end
the existing state of co-ownership. There is no doubt that ART. 1620. A co-owner of a thing may exercise the
redemption of property entails a necessary expense. right of redemption in case the shares of all the other
co-owners or of any of them, are sold to a third
An inherited property was mortgaged to a bank to person. If the price of the alienation is grossly
secure the procurement of a loan but the loan was excessive, the redemption shall pay only a
unpaid which caused the bank to foreclose the property. reasonable one.
Upon foreclosure, the mortgagor still has one year from
the date of the recording of the certificate of sale issued Should two or more co-owners desire to exercise the
as a result of the foreclosure to redeem the property. right of redemption, they may only do so in
proportion to the share they may respectively have in
During this one-year period, it was only one among the the thing owned in common.
several heirs who redeemed the property.
ART. 1623. The right of legal pre-emption or
SC in this case held that redemption by a co-owner does redemption shall not be exercised except within thirty
not terminate co-ownership. days from the notice in writing by the prospective
vendor, or by the vendor, as the case may be. The
What you have is the right to ask for reimbursement deed of sale shall not be recorded in the Registry of
form the other co-owners. However, the singular act of Property, unless accompanied by an affidavit of the
redemption does not make you the absolute owner of vendor that he has given written notice thereof to all
the property. possible redemptioners.
ADILLE v. HON. OF CA
The right of redemption of co-owners excludes that
While a vendee a retro, under Article 1613 of the Code,
"may not be compelled to consent to a partial redemption," of adjoining owners.
the redemption by one co-heir or co-owner of the property Not a case of redemption
in its totality does not vest in him ownership over it. Failure
on the part of all the co-owners to redeem it entitles the TAN v. CA
vendee a retro to retain the property and consolidate title The records show that when the petitioner purchased
thereto in his name. But the provision does not give to the the disputed property on August 30, 1974, any co-
redeeming co-owner the right to the entire property. It
ownership among the brothers and sisters no longer
does not provide for a mode of terminating a co-
ownership. existed. The period to redeem had expired more than
one year earlier, on July 6, 1973. The respondent
Redemption would not give rise to exclusive China Bank consolidated its ownership and a new
ownership title was issued in the bank's name. When the heirs
allowed the one-year redemption period to expire
ADILLE v. HON. OF CA without redeeming their parents' former property and
We find that the CA misappreciated Margarita's testimony permitted the consolidation of ownership and the
that the respondents are entitled to the entire property issuance of a new title, the co-ownership was
because they redeemed or paid the bank loan. The failure
extinguished. The challenged ruling of the
of the other heirs to reimburse the amounts advanced by
the respondents in payment of the loan did not entitle the
respondent court is, therefore, based on erroneous
latter to claim full ownership of the co-owned property. It premises.
only gave them the right to claim reimbursement for the Distinguished from other cases where the redemption of
amounts they advanced in behalf of the co-ownership. The
one co-owner would not entitle him to assert ownership
respondents' advance payments are in the nature of
necessary expenses for the preservation of the co- of the entire co-owned property.
ownership. Article 488 of the Civil Code provides that
necessary expenses may be incurred by one co-owner, Here, at the time that this supposed co-owner purchase
subject to his right to collect reimbursement from the the property from the bank, the period of redemption
remaining co-owners. Until reimbursed, the respondents has already expired.
hold a lien upon the subject property for the amount they
advanced. Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
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As earlier mentioned the mortgagor will be given 1 year to compel the sale of the property has already been
from the time the date of registration to redeem. If no made?
redemption was made within that period then the
mortgagee would consolidate its ownership and a new SC ruled that you are liable. Filing an action to compel
title will be issued in its name. the sale to the property is tantamount is demand for
partition. The moment there is demand and you did not
However, ITCAB, one of the former co-owners bought submit to partition immediately and continued staying in
back the property at the time that the bank already the premises, you cannot continue in possession of the
consolidated its ownership over the property. co-owned property without paying the appropriate
rentals for your exclusive use of the property.
Is this act of buying the property using his own money
give him sole and exclusive ownership? The act of filing an action is already tantamount to a
demand for partition. Thereby, if the allegations are
YES. Upon consolidation of ownership by the bank, proven, co-ownership is already deemed terminated and
there was no more co-ownership to speak of. consequently the right to enjoy the possession jointly
Technically, at the time of purchase by the co-owner, he also ceases at that moment.
was doing it in his personal capacity and no longer in
behalf of the co-owners, absent the property relation of PARTITION
co-ownership. (MODE OF TERMINATING CO-OWNERSHIP)

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
!
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)
Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
!
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.

Their acts constitute an implied recognition of the co- Repudiation of co-ownership


ownership, which in turn negates the presence of a Take note of 494. If this co-owner who is now invoking
clear notice of repudiation to the respondent. To prescription repudiates co-ownership and the other co-
sustain a plea of prescription, it must always clearly owners who were repudiated did not immediately take
appear that one who was originally a joint owner has action like filed an action for partition, then prescription
repudiated the claims of his co-owners, and that his will start to run from the date of repudiation. It means
co-owners were apprised or should have been that a co-owner is no longer recognizing the existence of
apprised of his claim of adverse and exclusive co-ownership. As ITCAB, the co-owner executed
ownership before the alleged prescriptive period documents wherein he made it appear that he is the
began to run. only owner of the property.

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.

Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio


!
On the basis of that document (affidavit of adjudication HEIRS OF MANINDING v. CA
by sole heir) he was able to successfully obtain a title in Therefore while prescription among co-owners
his name alone. This is another act of repudiation. cannot take place when the acts of ownership
exercised are vague and uncertain, such prescription
The other co-owners did not take action within the arises and produces all its effects when the acts of
period provided for by law, which is 10 years from the ownership do not evince any doubt as to the ouster
time that this document was registered. of the rights of the other co- owners.
This co-owner who made these documents, placing the As disclosed by the records, Roque Bauzon and his
property under his name had already acquired sole and heirs possessed the property from 1948 to 1986 to
exclusive ownership on the basis of prescription because the exclusion of petitioners who were never given
it was preceded by a repudiation of co-ownership. their shares of the fruits of the properties, for which
reason they demanded an accounting of the produce
Requisites for repudiation to be effective and the conveyance to them of their shares.
PANGAN v. CA
Unfortunately they slept on their rights and allowed
For title to prescribe in favor of the co-owner, almost thirty-six (36) years to lapse before
however, there must be a clear showing that he has attempting to assert their right. Perforce, they must
repudiated the claims of the other co-owners and suffer the consequence of their inaction
that they have been categorically advised of the
exclusive claim he is making to the property in
question. It is only when such unequivocal notice has Sleeping on one’s rights (sufficient to make
been given that the period of prescription will begin prescription run in favor of one co-owner)
to run against the other co-owners and ultimately The moment there is repudiation of ownership, it is
divest them of their own title if they do not incumbent upon the other co-owners who are disowned
seasonably defend it. to immediately take legal action to compel the
recognition of the co-ownership such as by filing the
Adverse possession requires the concurrence of the appropriate action for partition.
following circumstances:
Here, the other co-owners or exclusive heirs did not take
1. That the trustee has performed unequivocal action from 1948-1986. This was taken by the SC to
acts amounting to an ouster of the cestui que mean as sleeping on one’s rights. Because of this, there
trust (other co owners); was already a sufficient period to make prescription run
2. That such positive acts of repudiation had in favor of that co-owner who is now claiming sole and
been made known to the cestui que trust; and exclusive ownership.
3. That the evidence thereon should be clear and
conclusive. Case of repudiation of 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
Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio
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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.

Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio


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CONDOMINIUM CORPORATION
Whenever the common areas in a condominium project
are held by a condominium corporation, such
corporation shall constitute the management body of the
project. The corporate purposes of such a corporation
shall be limited to the holding of the common areas,
either in ownership or any other interest in real property
recognized by law, to the management of the project,
and to such other purposes as may be necessary,
incidental or convenient accomplishment of said
purposes.

Property | Atty. Gravador | A.Y. 2020 – 2021 | AGregorio


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