UNIVERSITY OF SCIENCE AND TECHNOLOGY

OF SOUTHERN PHILIPPINES
Alubijid | Cagayan de Oro | Claveria | Jasaan | Oroquieta | Panaon

GE 212 INTRODUCTION TO THE LAW ON PRIVATE AND PUBLIC LANDS

Lecture Notes

CO-OWNERSHIP
• Co-ownership is the right of common dominion which 2 or more persons have in a
spiritual (a.k.a. ideal or aliquot) part of a thing which is not physically divided.
• In co-ownership, there is only 1 ownership, but ii is shared ownership.
• Each co-owner owns a fractional or an ideal part of the object but they cannot point
to a specific part of the object.
• Co-ownership is not encouraged since it is very unwieldy. It is very easy to have
disagreements between co-owners.

A. Sources of Co-Ownership

1. By law - Law may mandate co-ownership (i.e., party wall)

2. By contract
3. By chance Examples are commixtion or confusion
4. By occupation - In Punzalan vs. Boon Liat, the SC said that the fishermen are co-
owners of the whale they caught.
5. By succession - Compulsory, testamentary, intestate

B. Characteristics of Co-Ownership

1. More than 1 owner

2. 1 physical unit or whole divided into ideal or fractional shares
3. Each fractional share is definite in amount but not physically segregated from the
rest
4. As to the physical unit, each co-owner must respect the other co-owners in its
common use, enjoyment and preservation (Article 483)
5. As to the aliquot share, each co-owner holds absolute control (Article 493)
6. No juridical personality of its own
C. Co-Ownership Distinguished from Partnership

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

• Co-owners must respect the rights of the other co-owners.

• In Pardell vs. Bartolome, 2 sisters owned a 2 story building. The first floor was by
rented out. The second floor was being occupied by 1 sister. The other sister was in
Spain. The SC said that the sister occupying the second floor need not pay rent.
The fact that she used the whole second floor is irrelevant. She did not prejudice the
rights of her sister in Spain precisely because she was in Spain. But with respect to
the first floor which was occupied by the husband of one of the sister‘s, the husband
should pay his sister-in-law ½ of the rent for such portion. Otherwise, his sister-in-
law would be prejudiced.
• As a co-owner, one can use all of the physical unit. For example, a co-owner uses
the entire car, not just a portion of the car. A co-owner does not have to pay rent
for the use of the thing co-owned.

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

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

• A, B, C, D, and E are co-owners of a lot which is being squatted. A files an
ejectment suit. A wins. All the other co-owners benefit. Do the other co-owners
share in the expense? Yes, one can argue that it‘s a necessary expense.
 • A, B, C, D, and E are co-owners of a lot which is being squatted. A files an
ejectment suit. A loses. May the other sue for ejectment? No, it is barred by prior
judgment.
• A,B, and C bought a book on credit. They are co-owners of a book. In an action by
the creditor against the co-owners, the creditor must sue all. Article 487
contemplates a situation when it is the co-owner who files the suit not when they are
the defendants.
• Article 487 is a case where 1 co-owner can bind the other. The other instance is
Article 489.

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

• Expenses for the preservation of the thing owned in common as well as taxes must
be shouldered by every co-owner in proportion to their interest.
• A co-owner has 2 options:
1. Pay for the necessary expenses or taxes
2. Can forfeit so much of his share which is equivalent to his interest to the co-
owner who paid for the necessary expenses or taxes
• The co-owner who made the advance has a right of reimbursement. The advancing
co-owner only has the right to require payment. He may not demand the share of
the co-owner.

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

• Repairs for preservation may be made at the will of 1 of the co-owners.

• As much as possible, notice should be given to the other co-owners. The lack of
notice only gives rise to the presumption that the repairs were not necessary.
However, this can be proven otherwise.
• Article 489 is a case where 1 co-owner can bind the other. The other instance is
Article 487.
• Useful or ornamental expenses need a majority. Majority is computed not by
counting heads but by majority of the controlling interest in the co-ownership.

Art. 490. Whenever the different stories of a house belong to different owners, if the titles
of ownership do not specify the terms under which they should contribute to the necessary
expenses and there exists no agreement on the subject, the following rules shall be
observed: (1) The main and party walls, the roof and the other things used in common,
shall be preserved at the expense of all the owners in proportion to the value of the story
belonging to each; (2) Each owner shall bear the cost of maintaining the floor of his story;
the floor of the entrance, front door, common yard and sanitary works common to all, shall
be maintained at the expense of all the owners pro rata; (3) The stairs from the entrance
to the first story shall be maintained at the expense of all the owners pro rata, with the
exception of the owner of the ground floor; the stairs from the first to the second story shall
be preserved at the expense of all, except the owner of the ground floor and the owner of
the first story; and so on successively.
 • This hardly exists anymore.
• Condominium Law (RA 4726 as amended by R.A. No. 7899)
• Most condominiums are corporations. If the condominium is a co-ownership, then
the provisions of the Civil Code are relevant.

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

• In order to make alterations, the consent of all co-owners is needed.

• An alteration is an act of strict ownership (i.e. any act of encumbrance) or one which
involves a change in the use of the thing (i.e. bought Tamarax FX to carpool and
then decide to rent it out).
• However, if the withholding of the consent by 1 or more of the creditors is clearly
prejudicial to the common interest, the court may intervene and afford adequate
relief.

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

• Acts of administration need a majority. Majority is computed not by counting heads

but by majority of the controlling interest in the co-ownership.
• An example of an act of administration is replacing the tires of a car owned in
common with another brand of tires.

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

• Article 493 is the rule regarding fractional interest.

• The partner provision of Article 493 is Article 486.
• Article 493 provides that each co-owner shall have the full ownership of his part and
of the fruits and benefits pertaining thereto, and he may therefore alienate, assign or
mortgage it, and even substitute another person in its enjoyment, except when
personal rights are involved. But the effect of the alienation or the mortgage, with
respect to the co-owners, shall be limited to the portion which may be allotted to him
in the division upon the termination of the co-ownership.
• Article 486 provides that each co-owner may use the thing owned in common,
provided he does so in accordance with the purpose for which it is intended and in
such a way as not to injure the interest of the co-ownership or prevent the other co-
owners from using it according to their rights.
• A co-owner may lease his fractional or ideal share.
 • A co-owner may not dispose of the entire property owned in common. If he does so,
the transaction is valid in so far as his ideal share is concern.

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

Ways of Terminating a Co-Ownership

1. Partition - converts into certain and definite parts the respective share of the undivided
shares of the co-owners.

General Rule: Partition is demandable by any of the co-owners as a matter of right at any
time. If the other co-owners do not consent, then go to court.

Exceptions:

a. When there is an agreement to keep the thing undivided

o The maximum period for such an agreement is 10 years.

o The agreement can be extended. Such an extension must not go beyond 10
years. There is no limit as to the number of extensions.
o What if the co-owners agree to extend for more than 10 years, is the
agreement totally void or it is good for only 10 years? The less radical view
would say that it is valid for only 10 years.
o Partition may either be by agreement of the parties or by judicial proceedings
(Article 496).

b. When prohibited by the donor or testator

o The prohibition by the donor or testator cannot exceed 20 years.

o What if donor states that the prohibition is for 30 years, is the prohibition
totally void or it is good for only 20 years? The less radical view would say
that it is valid for only 20 years. Even though the testator or donor
prohibits partition, the coownership shall terminate when:

i. Any of the causes for which partnership is dissolved takes place; or

ii. The court finds compelling reasons that division should be ordered
upon petition of one of the co-heirs

c. When prohibited by law

o Exception to the exception: When compelling reasons it must be partitioned

(i.e., Article 159, Family Code)

d. When partition renders the thing unserviceable

o Article 498 governs in this case.

 o Under Article 498, when the thing is essentially indivisible and the co-owners
cannot agree that it be allotted to one of them who shall indemnify the
others, it shall be sold and the its proceeds be distributed.
o What is allowed only is a constructive and not a physical partition (i.e. in a
partition of a house).

e. When the legal nature of the thing does not allow partition (i.e. party wall)

2. Consolidation

3. Destruction or loss

4. Prescription

General Rule: Prescription will not run if the object is in possession of anyone of the co-
owners since such possession is not adverse.

Exception: Co-owner may repudiate the co-ownership and the prescriptive period will start
to run.

• Anything that terminates a co-ownership is similar to a partition