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) Co-ownership The right of common dominion w/c 2 or more persons have in a spiritual or ideal part of a thing w/c is not physically divided (S. Roman). Not a juridical person, nor is it granted any form of juridical personality, thus, it cannot sue in court. Co-owners can sue in their individual capacities. Possession of a co-owner is like that of a trustee and shall not be regarded as adverse to the other co-owners but in fact as beneficial to all of them. No co-ownership when different portions owned by different people are already concretely determined and identifiable, even if not yet technically described. A co-owner can only alienate his pro indiviso share in the coowned property. Thus, a co-owner does not lose his part ownership of a co-owned property when his share is mortgaged by another coowner w/o his knowledge and consent. What governs co-ownership? 1. contracts 2. special legal provisions 3. provisions of the Title on co-ownership Sources of co-ownership 1. law Art. 144 2. contract 3. chance commixtion, confusion, hidden treasure 4. occupation or occupancy catching of wild beast (seems erroneous, since it is also by implied agreement or contract) 5. succession/will the exercise of legal redemption use the rule on co-heirs; after partition of hereditary estate, the rule on co-owners apply. Kinds of co-ownership Subject Matter Source 1. undivided 1. contrac thing t 2. undivided 2. nonright contract Rights of co-owners 1. tenancy in common (common ownership) 2. joint tenancy (joint ownership)

Characteristics of co-ownership (7) 1. More than 1 subject or owner 2. 1 physical whole divided into ideal (undivided) shares 3. Each ideal share is definite in amount but is not physically segregated from the rest 4. Each co-owner holds almost absolute control over ideal share. 5. Each co-owner must respect each other in the common use, enjoyment, or preservation of the physical whole. 6. Not a juridical person, no juridical personality. 7. Co-owner a trustee for the other co-owners. Thus, he may not ordinarily acquire exclusive ownership of the property held in common thru prescription.

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 (to do so would be to run against the nature of co-ownership). The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the contrary is proved. (393a) Each co-owner shares proportionately in the accretion or alluvium of the property because the increase in area benefits all. A co-owner can compel others to pay the taxes he has paid.

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) Reason: the presumption is that the case is instituted in behalf of all, after all, co-owner owns and possesses the whole and ejectment cases are urgent and summary in character.

Ejectment covers (6): 1) forcible entry; 2) unlawful detainer; 3) accion publiciana; 4) accion reinvindicatoria; 5) quieting of title; 6) replevin only issue in ejectment is physical or material possession of property BP 129 suggest that inferior courts are now conditionally vested w/ adjudicatory power over the issue of title or ownership raised in ejectment As a general rule, the main issue in an ejectment suit is possession de facto not possession de jure; the only issue is physical or material possession

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) A co-owner has the right to compel the others to share in the necessary expenses of preservation even if incurred w/o prior notification to them. A co-owner may exempt himself from this duty by RENOUNCING so much of his undivided share as may be = to his share of the expenses and taxes (does not necessarily renouncing his entire interest and not prejudicial) I.E. of prejudicial = house on verge of collapse, Y contracted to repair, can compel X to pay, X cannot renounce if Y has no money to shoulder all expenses Reimbursement can be had from the estate of a deceased coowner provided no renunciation has been made. Renunciation cannot be implied by mere refusal to pay proportionate share. If there is refusal but no renunciation > creditor can still collect from delinquent co-owner (other co-owner cannot intervene for they are not the ones prejudiced).

Requisites of Renouncement 1. If in favor of creditor creditor must give his consent (for this would be a case of adjudication en pago or dation in solutum, where a debtor gives something else in payment of his debt)

2. If in favor of other co-owners > co-owner agrees (in the form of substitution of debtor > datio en pago); and provided creditor agrees (novation or change of debtor)

Art. 489. Repairs for preservation may be made at the will of one of the co-owners, but he must, if practicable (something can be done as oppose to practical = useful), 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) Number of co-owners to give consent 1. repairs, ejectment action = 1 2. alterations or acts of ownership = ALL 3. All others (useful improvements, luxurious embellishments, admin & better enjoyment FINANCIAL MAJORITY (not numerical) If repair was made w/o notice (even if notice is practicable)? Co-owner still liable, however, may invoke that if repair is too expensive, the first co-owner should shoulder the difference

PERPENDICULAR CO-OWNERHSIP 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)

Perpendicular co-ownership > different stories belong to different persons; still co-ownership for there is still unity in the use or ornamentation of the property, particularly in the main and common walls, roof, stairs, etc. which is not common in our country Art applies only if there is no contrary provision in the titles of ownership or agreement Horizontal co-ownership > if the various units are in one plane (as when 1-story units all set on the ground) Combination of perpendicular and horizontal = condominium (divided into different units owned by different persons) Ground floor not same as first floor RULES 1. Proportionate contribution is required for main walls, party walls, roofs, and other things used in common. 2. Each floor owner for the expenses of his floor. 3. Stairs to be maintained from story to story by the users. RA 4726 > The Condo Act The buyer of a unit in a condo acquires ownership over the unit only after he has paid in full its purchase price. The ownership is the separate interest of the owner w/c makes him automatic shareholder of condo corp All incorporators must own condo unit PD 947 designed to stem the tide of fraudulent manipulations done by unscrupulous subdivision and condo sellers and operators The act of subdivision developer of mortgaging the subdivision w/o notifying an installment buyer is violative of PD 957 (under jurisdiction of HLURB).

ALTERATION 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 coowners is clearly prejudicial to the common interest, the courts may afford adequate relief. (397a) ALTERATION is a change (an act of ownership; may be material or metaphysical and give rise to a real right over the property owned in common) 1. more or less permanent 5

2. changes the use of the thing 3. prejudices the condition of the thing or its enjoyment by others Replacement not alteration Illegal alteration (un verdadero despojo) > w/o the express/implied consent of other co-owner (consent should be unanimous) Effects of Illegal alteration (5) 1. co-owner responsible may lose what he has spent 2. can be demolished 3. co-owner liable for losses and damages 4. benefits belong to co-owner 5. house constructed in common land = all will be entitled to a proportionate share of the rent Examples of alterations 1. Sale, donation, mortgage of whole property > sale not valid w/ respect to share of the co-owner who did not consent 2. Sale, donation, mortgage of part of property w/ definite boundaries > sale is not void but subject to the result of subsequent partition 3. A voluntary easement (Art 691) 4. Lease of real prope if the lease is recorded or the lease is for more than 1 year (whether recorded or not) 5. Construction of H on a land owned in common 6. Any act of strict dominion or ownership 7. Contracts of long duration

ADMINISTRATION AND BETTER ENJOYMENT (financial majority is sufficient) 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) Requisites of Acts of Admin and Management (all must concur) 1. do not involve alteration 2. renewed from time to time 3. have transitory effects (do not bind the co-owners for a long time in the future) 4. do not give rise to a real right over common things 5. do not affect the substance or nature of thing (even if called alteration) 6. common bene of all co-owners Example: lease of 1 year or less of real property provided not registered; by resolution of financial majority, one of them is appointed manager or administrator Limitations on the Right of the Financial Majority 1. Notice to minority so that they can be heard 2. Absence of notice only if justified by urgency and difficulty of meeting 3. Minority may appeal to the court when (the court may even appoint an administrator): a. no real majority b. resolution is seriously prejudicial to the rights of individual co-owner 1. loans w/o sufficient security 2. encumbrance or disposition is made since it is an alteration 3. abusive or inefficient admin is not replaced c. majority refuses to correct abuse of admin or mala administration d. minority victim of fraud e. alteration is agreed instead of admin

IDEAL SHARE 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 (is not the personal rights as opposed to real 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)

Rules on Ideal Share > co-owner 1. has full ownership of his part, and of his share of the fruits and bene 2. may alienate, assigne, or mortgage (AAM) his ideal share (not one w/ boundaries) w/o prejudice to the right of legal redemption by others 3. may substitute another person in its enjoyment except when personal rights is involved 4. may exempt himself from necessary expenses and taxes by renounciation A co-owner points out to his buyer the boundaries of the part, co-owner did not object, partial partition effected, sale of definite portion cannot be assailed Redemption of share of a co-owner cannot be affected if there has been a partition of property formerly owned in common Sale of entire property valid as far as the share of the coowner unless others consent Co-owner cannot sell his share if there would be a change in the use of the common property (selling of 1st floor to be use as factory)

PARTITION Art. 494. No co-owner shall be obliged to remain in the coownership. 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) Partition: has for its purpose the separation, division or assignment of things held in common, among the people to whom they may belong. Reason: To remain in co-ownership would subject a person to the desires of the rest, the law discourages co-ownership, thus, co-owner may not acquire exclusive ownership of common property thru prescription.

Object of partition: real and personal properties Partition not allowed 1. by agreement (not exceeding 10 years; extended only once after expiry) 2. prohibited by donor or testator (not exceeding 20 years) the heirs may partition should any of the ground for dissolution of partnership exists 3. prohibited by law (conjugal partnership) 4. will render property unserviceable (may allot to another coowner who will indemnify or may be sold to others) 5. legal nature does not allow partition (party walls) Perpetual prohibition = void = valid for 10 years only General Rule: Co-owner cannot acquire property by prescription Except: Requirements are complied 1. Make known to other co-owners that he is definitely repudiating the co-ownership & he is claiming complete ownership over the entire property 2. Evidence of repudiation and knowledge on the part of the others must be clear and convincing 3. Other requirements of prescription must be present continuous, open, peaceful, public, adverse possession for the period of time required under the law 4. Period of prescription will run from repudiation of co-ownership

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 coownership 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) Classification of the various kinds of partition (viewpoint of) a) Cause 1. extrajudicial 2. judicial

b) permanence 1. provisional or temporary 2. permanent c) subject matter 1. real property 2. personal property d) forms and solemnities 1. judicial decree 2. registered in Registry of Property 3. public instrument 4. private instrument 5. oral partition Law that governs partition 1. Civil code 2. Rules of Court (Rule 69)

Art. 497. The creditors (whether preferred or ordinary and creditors during existence of co-ownership) 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) Co-owner sold share w/o delivery; co-owner participate in the partition and buyer also as assignee; if w/ delivery buyer shall participate Notice to creditors and assignees must be given > If not notified = court must return or remand the case to the cadastral court

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) > refers to legal or juridical dissolution; termination of co-ownership made by law; applies also to divisible property

Art. 499. The partition of a thing owned in common shall not prejudice third persons, (all those who did not in any way participate or intervene in the partition) who shall retain the rights

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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)

Effects of Partition 1. mutual accounting for benefits received 2. mutual reimbursement for expenses 3. indemnity for damages in case of negligence or fraud 4. reciprocal warranty for defects of title (or eviction); or quality (or hidden defects) 5. each former co-owner is deemed to have had exclusive possession of the part allotted to him for the entire period w/c the co-possession lasted 6. partition confers upon each, the exclusive title over his respective share 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) Extinguishment of Co-ownership 1. judicial participation 2. extrajudicial participation 3. when by prescription, one co-owner has acquired the whole property by adverse possession as against all the others, and repudiating unequivocally the co-ownership of the other 4. when a stranger acquires by prescription the thing owned in common 5. merger in co-owner 6. loss or destruction 7. expropriation

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