CO-OWNERSHIP

1. Co-ownership – established by law or agreement

Partnership – established by contract
2. Co ownership- profit is incidental
Partnership – primarily for profit
3. Co-owners- no personality
Partnership- has personality distinct from owners
4. Co-owners – can transfer interest without the consent of others
Partner – cannot transfer his interest without the consent of the other partners

Co-ownership
Art 484- Co-ownership exist when undivided thing or right belongs to different person
Art 753- donation to several persons jointly- equal in share and no right of accretion unless
provided
-donation to husband and wife jointly- right of accretion operates even if not provided
Art. 148 – properties acquired due to their actual joint contribution of money property or
industry shall be owned by them in common in proportion to their respective shares.
-presumed equal
-valid married to another the share in co-ownership shall accrue to ACP or CP
-if not validly married and in bad faith results to forfeiture
Art. 1078 – 2 or more heirs in an estate, before partition, shall be owned in common subject to
payment of debts
Partnership
Art. 1767 – 2 or more persons bind themselves to contribute, money property or industry to a
common fund
-intention of dividing the profits among themselves
-form partnership for the purpose of profession
Art. 1784 – partnership begins from the moment of the execution of the contract unless
otherwise stipulated

Co ownership- profit is incidental

Partnership – primarily for profit
Art. 1767 – 2 or more persons bind themselves to contribute, money property or industry to a
common fund
-intention of dividing the profits among themselves
-form partnership for the purpose of profession
Art 1799- A stipulation which excludes one or partners from any share in the profit or losses is
VOID.

Co-owners- no personality
Partnership- has personality distinct from owners
Art. 1768 – partnership has juridical personality separate and distinct from that of partners
even in failure to comply the capital requirement, Public instrument
Co-owners – can transfer interest without the consent of others
Partner – cannot transfer his interest without the consent of the other partners

Art. 493 – Each co- owner shall have full ownership of his part, fruits, and benefits pertaining
there to.
-He may alienate, assign, mortgage it
-substitute another person in its enjoyment except if it involved personal rights.
-limited to the portion allotted to him.
Art. 1804 – Every partner may associate another person in his share
 - Association must be with consent of ALL partners even if the person having an associate
is a manager
Art. 1813 -Conveyance by a partner of his whole interest in partnership does not dissolve the
partnership or as against the partners in the ABSENCE of AGREEMENT
- Entitle the assignee during the continuance of the partnership to interfere in the
MANAGEMENT OR ADMINISTRATION of the partnership business or affairs
- Receive profits accordance to the assigning partners
- Fraud, assignee may avail himself of usual remedies
- Dissolutio, receive his assignor’s interest

CONDOMINIUM
-interest in real property consisting consisting of separate interest in a unit in residential,
industrial or commercial bldg.
-undivided interest in common, directly or indirectly in the land on which it is located and in
other common areas of the bldg.
-COMMON AREAS- owned by the owners of separate units in equal shares, one for each unit
-Common areas in the condominium project are held by a corporation specially formed for the
purpose, in which case the holders of the separate interest shall automatically be shareholders

Art. 486 – Use by one of the co-owners

-use it in accordance to its purpose
-use not to injure the interest of the other co-owners
-not prevent the other co-owners from using it according to their rights
-PURPOSE of co-ownership can be changed by agreement, express or implied

ART 487 – Co-owners indispensable party to an action?

-Any one of the co-owners may bring an action of ejectment

EXPENSES FOR PRESERVATION

Art 488 – Each co owner can COMPEL the other co -owner to contribute to the expenses of
preservation of a thing or right and to the TAXES
-Any one may exempt from the obligation by renouncing so much of his undivided interest that
is equivalent to the expenses and taxes.
-no waiver if prejudicial to the ownership

Art 489
-Repairs for the preservation maybe made at the will of one of the co-owners, if practicable,
notify his co-owners of the necessity
-Expenses to improve or embellish shall be decided by majority in accordance with Art 492

Art 492 – administration and better enjoyment of the thing owned in common,, the resolutions
of the majority of the co-owners shall be binding
-no majority unless the resolution is approved by the co-owners who represent the controlling
interest in the object of the co-ownership
Art 491 – none of the co-owners w/o consent of the others make alteration in the thing owned
in common, even though benefits for all would result therefrom
-if the withholding of the consent by one or more of the co-owners is clearly prejudial to the
common interest, the courts may afford adequate relief.
Sale by Co-owner
Art 493 - Each co- owner shall have full ownership of his part, fruits, and benefits pertaining
there to.
-He may alienate, assign, mortgage it
-substitute another person in its enjoyment except if it involved personal rights.
-limited to the portion allotted to him.
Art 1620
Art 1623

Prescription among co-owners

Art 494 - – no co-owner shall be obliged to remain in the co-ownership. Each co-owner may
demand at any time the partition of the thing owned in common in so far as his share is
concerned
-agreement to keep the thing undivided should not exceed 10 yrs. Maybe extended with new
agreement
-donor or testator my prohibit partition for a period which shall not exceed 20 yrs
-no presctiption shall run in favor co-owner or co-heir against each other so long as he expressly
or impliedly recognizes the co- ownership
Art 1111

Partition maybe demanded anytime

Art 494 – no co-owner shall be obliged to remain in the co-ownership. Each co-owner may
demand at any time the partition of the thing owned in common in so far as his share is
concerned
-agreement to keep the thing undivided should not exceed 10 yrs. Maybe extended with new
agreement
-donor or testator my prohibit partition for a period which shall not exceed 20 yrs
-no presctiption shall run in favor co-owner or co-heir against each other so long as he expressly
or impliedly recognizes the co- ownership

Art 496
When the property is indivisible
Art 495
Art 498
Art 1086

POSSESSION
Actual possession of IMMOVABLE under the concept of ownership has the presumption of just
title and give rise to acquisitive prescription:
Art 433- actual possession under the claim of ownership raises a disputable presumption of
ownership. The true owner must resort to judicial process for the recovery of the propery
Art 540 -Only possession acquired in the concept of an owner can serve as a title for acquiring
dominion
Art 541 – A possessor in the concept of owner has in his favor the legal presumption that he
possesses with a just title and he cannot be obliged to show or prove it.
Art 1106 – by prescription, one acquires ownership and other real rights through the lapse time
-by presctiption, rights and actions are lost
Art 1117 - Acquisitive prescription maybe ordinary or extra ordinary
- Ordinary requires possession of things in good faith and with just title

Art 1118 -Possession has to be in the concept of an owner, public, peaceful and uninterrupted

Ordinary Acquisitive prescription requires possession in good faith and just title for 10 years
Art 1117- Acquisitive prescription maybe ordinary or extra ordinary
- Ordinary requires possession of things in good faith and with just title
Art 1127 – good faith consist of reasonable belief that the person who received the thing was
the owner thereof and could transmit his ownership
Art 1128 –
Art 1129 – there is just title when the adverse claimant came into possession of the property
thru one of the modes recognized by law for acquisition of ownership but the grantor was not
the owner or could not transmit any right
Art 1131 – for purposes of prescription, just title need to be proved not presumed
Art 1134 – ownership and other real rights over immovable acquired by ordinary presctiption
thru possession of 10 years
Extraordinary Acquisitive prescription is 30 yrs without need of good faith or just title
Art 1137 – Ownership and other real rights over immovables also prescribes thru uninterrupted
adverse possession thereof for 30 years without need of title or of good faith
Action to recover immovable prescribes after 30 years
Art 1141 – real actions over immovables prescribes after 30 years
Registered land cannot be acquired by prescription or adverse possession
Possession merely tolerated or done clandestinely or by violence does not affect ownership
Art 537– Acts merely tolerated, executed clandestinely, w/o knowledge of the possessor of a
thing, or by violence, do not affect possession
Art 1119 – Acts of possessory character executed in virtue of license or by mere tolerance of
the owner shall not be available for the purpose of possession.
No prescription runs against co-owners unless expressly repudiated
Art 494 – no co-owner shall be obliged to remain in the co-ownership. Each co-owner may
demand at any time the partition of the thing owned in common in so far as his share is
concerned
-agreement to keep the thing undivided should not exceed 10 yrs. Maybe extended with new
agreement
-donor or testator my prohibit partition for a period which shall not exceed 20 yrs
-no presctiption shall run in favor co-owner or co-heir against each other so long as he expressly
or impliedly recognizes the co- ownership
No prescription runs between husband and wife, parents and minor children or guardian and
ward
Art 1109 – prescription does not run between husband and wife even in separation of property
agreed in marriage settlement or judicial decree
- No prescription Between parents and children during minority or insanity of the latter
- No prescription between guardian and ward during continuance of guardianship
Property of public dominion of the state is not subject to prescription
Art 1113- all things within the commerce of men are susceptible of prescription
-property of the state or any of its subdivision not patrimonial in character shall be object of
prescription

Movable property not deemed abandoned even though for the time being he may not know
its whereabouts:
Art 555 – A possessor may lose his possession:
Abandonment of thing, assignment(onerous/gratuitous), destruction, loss, goes out of
commerce, possession of another subject to Art 537 if the new possession lasted longer than 1
year. Real right not lost till after the lapse of 10 years
- Not in possession for more than 1 year but less than 10 yrs. Accion Publiciana (for better
right of possession)
Art. 537 – Acts merely tolerated, executed clandestinely, w/o knowledge of the possessor of a
thing, or by violence, do not affect possession.
Art 556 – possession of movables not deemed lost so long it is within the control of the
possessor even if for the time being he doesn’t know the whereabouts
- Knows the general location
OWNER UNLAWFULLY DEPRIVED OF POSSESSION:
Art. 559 – Right to recover personal property lost, illegally deprived, or movables acquired in
public sale, fair or market, merchant’s store if acquired by the possessor in good faith cannot
obtain return without reimbursing the price paid.
-possession of movable acquired in good faith is equivalent to title
Art. 1505 – sold by a person not an owner, without authority to sell or consent, the buyer
requires no better title than the seller. If in good faith then it is vested with title. Can be
required only when reimbursed.

PRESCRIPTION OF MOVABLES
Art. 1132 – uninterrupted possession for 4 yrs in good faith
- Personal property 8 yrs without need of any condition
Art. 559 – Right to recover personal property lost, illegally deprived, or movables acquired in
public sale, fair or market, merchant’s store if acquired by the possessor in good faith cannot
obtain return without reimbursing the price paid.
-possession of movable acquired in good faith is equivalent to title
Art. 1505 – sold by a person not an owner, without authority to sell or consent, the buyer
requires no better title than the seller. If in good faith then it is vested with title. Can be
required only when reimbursed.
Art 1140 – Action to recover movables shall prescribe in eight years from the time the
possession is lost
Art. 1133- Movables possessed thru a crime can never be acquired thru prescription by the
offender
Art 300 – Theft is committed when lost property was not turn over to proper authorities