Republic Act No.

386
June 18, 1949

The Civil Code of the Philippines

AN ACT TO ORDAIN AND INSTITUTE THE CIVIL CODE OF THE PHILIPPINES

Art. 484. There is co-ownership whenever the ownership of an undivided thing or right belongs to
different persons. In default of contracts, or of special provisions, co-ownership shall be governed
by the provisions of this Title. (392)

Art. 485. The share of the co-owners, in the benefits as well as in the charges, shall be
proportional to their respective interests. Any stipulation in a contract to the contrary shall be void.
The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the
contrary is proved. (393a)

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. (394a)

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

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. (395a)

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. (n)

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. (396)

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. (397a)

Art. 492. For the administration and better enjoyment of the thing owned in common, the
resolutions of the majority of the co-owners shall be binding. There shall be no majority unless the
resolution is approved by the co-owners who represent the controlling interest in the object of the
co-ownership. Should there be no majority, or should the resolution of the majority be seriously
prejudicial to those interested in the property owned in common, the court, at the instance of an
interested party, shall order such measures as it may deem proper, including the appointment of
an administrator. Whenever a part of the thing belongs exclusively to one of the co-owners, and
the remainder is owned in common, the preceding provision shall apply only to the part owned in
common. (398)

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 alloted to him in the division upon the termination of the co-ownership. (399)

Art. 494. No co-owner shall be obliged to remain in the co-ownership. Each co-owner may
demand at any time the partition of the thing owned in common, insofar as his share is
concerned. Nevertheless, an agreement to keep the thing undivided for a certain period of time,
not exceeding ten years, shall be valid. This term may be extended by a new agreement. A donor
or testator may prohibit partition for a period which shall not exceed twenty years. Neither shall
there be any partition when it is prohibited by law. No prescription shall run in favor of a co-owner
or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the
co-ownership. (400a)

Art. 495. Notwithstanding the provisions of the preceding article, the co-owners cannot demand a
physical division of the thing owned in common, when to do so would render it unserviceable for
the use for which it is intended. But the co-ownership may be terminated in accordance with
Article 498. (401a)

Art. 496. Partition may be made by agreement between the parties or by judicial proceedings.
Partition shall be governed by the Rules of Court insofar as they are consistent with this Code.
(402)

Art. 497. The creditors or assignees of the co-owners may take part in the division of the thing
owned in common and object to its being effected without their concurrence. But they cannot
impugn any partition already executed, unless there has been fraud, or in case it was made
notwithstanding a formal opposition presented to prevent it, without prejudice to the right of the
debtor or assignor to maintain its validity. (403)

Art. 498. Whenever the thing is essentially indivisible and the co-owners cannot agree that it be
allotted to one of them who shall indemnify the others, it shall be sold and its proceeds
distributed. (404)

Art. 499. The partition of a thing owned in common shall not prejudice third persons, who shall
retain the rights of mortgage, servitude or any other real rights belonging to them before the
division was made. Personal rights pertaining to third persons against the co-ownership shall also
remain in force, notwithstanding the partition. (405)

Art. 500. Upon partition, there shall be a mutual accounting for benefits received and
reimbursements for expenses made. Likewise, each co-owner shall pay for damages caused by
reason of his negligence or fraud. (n)

Art. 501. Every co-owner shall, after partition, be liable for defects of title and quality of the portion
assigned to each of the other co-owners. (n)

Art. 1611. In a sale with a right to repurchase, the vendee of a part of an undivided immovable
who acquires the whole thereof in the case of article 498, may compel the vendor to redeem the
whole property, if the latter wishes to make use of the right of redemption. (1513)

Art. 1612. If several persons, jointly and in the same contract, should sell an undivided immovable
with a right of repurchase, none of them may exercise this right for more than his respective
share. The same rule shall apply if the person who sold an immovable alone has left several
heirs, in which case each of the latter may only redeem the part which he may have acquired.
(1514)

Art. 1614. Each one of the co-owners of an undivided immovable who may have sold his share
separately, may independently exercise the right of repurchase as regards his own share, and the
vendee cannot compel him to redeem the whole property. (1516)

Art. 1623. The right of legal pre-emption or redemption shall not be exercised except within thirty
days from the notice in writing by the prospective vendor, or by the vendor, as the case may be.
The deed of sale shall not be recorded in the Registry of Property, unless accompanied by an
affidavit of the vendor that he has given written notice thereof to all possible redemptioners.

CHAPTER 7 EXTINGUISHMENT OF SALE SECTION 2. - Legal Redemption

Art. 1619. Legal redemption is the right to be subrogated, upon the same terms and conditions
stipulated in the contract, in the place of one who acquires a thing by purchase or dation in
payment, or by any other transaction whereby ownership is transmitted by onerous title. (1521a)

Art. 1620. A co-owner of a thing may exercise the right of redemption in case the shares of all the
other co-owners or of any of them, are sold to a third person. If the price of the alienation is
grossly excessive, the redemptioner shall pay only a reasonable one. Should two or more co-
owners desire to exercise the right of redemption, they may only do so in proportion to the share
they may respectively have in the thing owned in common. (1522a)

Art. 1621. The owners of adjoining lands shall also have the right of redemption when a piece of
rural land, the area of which does not exceed one hectare, is alienated, unless the grantee does
not own any rural land. This right is not applicable to adjacent lands which are separated by
brooks, drains, ravines, roads and other apparent servitudes for the benefit of other estates. If two
or more adjoining owners desire to exercise the right of redemption at the same time, the owner
of the adjoining land of smaller area shall be preferred; and should both lands have the same
area, the one who first requested the redemption. (1523a)

Art. 1622. Whenever a piece of urban land which is so small and so situated that a major portion
thereof cannot be used for any practical purpose within a reasonable time, having been bought
merely for speculation, is about to be re-sold, the owner of any adjoining land has a right of pre-
emption at a reasonable price. If the re-sale has been perfected, the owner of the adjoining land
shall have a right of redemption, also at a reasonable price. When two or more owners of
adjoining lands wish to exercise the right of pre-emption or redemption, the owner whose
intended use of the land in question appears best justified shall be preferred. (n)

Art. 1623. The right of legal pre-emption or redemption shall not be exercised except within thirty
days from the notice in writing by the prospective vendor, or by the vendor, as the case may be.
The deed of sale shall not be recorded in the Registry of Property, unless accompanied by an
affidavit of the vendor that he has given written notice thereof to all possible redemptioners. The
right of redemption of co-owners excludes that of adjoining owners. (1524a)
http://www.balita.ca/2009/07/rights-of-co-owners-to-sell-property/

Rights of co-owner(s) to sell property

Posted by Atty. Rogelio Wong on 7/01/09 • Categorized as Batas Pinoy

Q. I have been keeping some of your old clippings from Balita and just wondering if you are still
active with Balita.

I would like to consult with you regarding our properties in Cordon, Isabela. We are 11 siblings
and the property (commercial) of our late parents was transferred to us represented by one of my
brothers. Attached to the Transfer Certificate of Title, is the Deed of Extra Judicial Settlement
witnessed and signed by all of 11 siblings.

My two (2) sisters and one (1) brother who live in Cordon are currently selling and negotiating to
sell this commercial property without our consent. But according to them, they have a lawyer
stating that they have the power to sell the property. I really don’t understand since I am in
Canada and some of my siblings are also abroad and in Manila. I can’t do anything from here.
By law, can my three (3) siblings sell the commercial property without discussing with us or giving
them the power of attorney to negotiate? Thank you so much for reading this and for your help.
SIncerely, Maricar

Ans: My view to your query is anchored on my understanding that this property that you
mentioned was already a subject of an extrajudicial settlement of estate of your deceased parents
by all the heirs and that the previous title thereof in the name of your deceased parent(s) was
cancelled already and a new one is issued showing the eleven (11) siblings in your family as Co-
owners.

Based on the above premise, your question now is whether your 3 siblings can sell this property
even without the consent of other co-owners or the rest of the siblings.
Under Article 493 of the Civil Code, co-owner(s) of an undivided property may sell his or her
interest or portion of the property even without the consent of other co-owners. Thus the answer
to your query is a resounding yes…your siblings as co-owner may alienate or assign or mortgage
his or her portion of the property even without the consent of the other co-owners.
Of course, your portion of the co-ownership will not be affected with the sale or alienation. As co-
owner, you can demand at any time for the partition of the property, more so if the physical
partition or division of the thing or property in owned in common will NOT render the division or
partition unserviceable for the use for which the property was intended. ( Art.495 Civil Code of the
Philippines).

Furthermore as co-owner, you have the pre-emptive right or the right of first refusal, to purchase
first that portion of the property owned in common before your siblings can sell it to third
party(ies), as held by the Supreme Court in a similar case, to wit:

“If a portion of the property co-owned has been sold to third person, with out affording the other
co-owner the opportunity of first refusal, the latter shall have 30 days from receipt of such notice
or knowledge thereof to exercise the right of legal redemption , at a reasonable price” (Oscar C.
Fernandez, et al. v. Spouses Carlos and Narcisa Tarun,G.R.143868,November 14,2002).

For your ready reference and corollary to the foregoing, pertinent provision of the Civil Code of
the Philippines, is hereunder reproduced:

“Article 1620. A co-owner of a thing may exercise the right of redemption in case the shares of all
the other co-owners or of any of them, are sold to a third person. If the price of the alienation is
grossly excessive, the redemptioner shall pay only a reasonable one. Should two or more co-
owners desire to exercise the right of redemption, they may only do so in proportion to the share
they may respectively have in the thing owned in common.”

“Article 1623. The right of legal pre-emption or redemption shall not be exercised except within
thirty days from the notice in writing by the prospective vendor, or by the vendor, as the case may
be, The Deed of Sale shall not be recorded in the Registry of Property, unless accompanied by an
affidavit of the vendor that the has given written notice thereof to all possible redemptioners. The
right of redemption of co-owners excludes that of adjoining owners.”

From the above , it is therefore imperative upon your siblings in the Philippines to offer the portion
of the property co-owned to the other co-owners first before selling the same to third person at a
reasonable price , and in case a written notice is served upon the co-owners to sell their share of
the property and or the property had been sold to third person without the other co-owners’ notice
, the latter shall have thirty days from receipt of such notice or knowledge , to exercise the rights
of pre-emption or redemption , as the case may be.