Title III - Co-ownership

Question 1

What is co-ownership?

Answer 1

Co-ownership is when the ownership of an undivided thing or right belongs to different persons.

Question 2

How is co-ownership defined by Sanchez Roman?

Answer 2

Sanchez Roman defines co-ownership as the right of common dominion which two or more persons have in a spiritual part of a thing, not materially or physically divided.

Question 3

What are the requisites of co-ownership?

Answer 3

The requisites of co-ownership are:

Plurality of subjects – co-owners

Unity of the object - there is a single object which is not materially divided, and which is the element which binds the subjects

Recognition of ideal share

Question 4

How is co-ownership defined by Manresa?

Answer 4

Manresa defines co-ownership as the manifestation of the private right of ownership, which instead of being exercised by the owner in an exclusive manner over the thing subject to it, it is exercised by two or more owners and the undivided thing or right to which it refers is one and the same.

Question 5

What is the dual nature of ownership in co-ownership?

Answer 5

The dual nature of ownership in co-ownership consists of:

Ownership over the ideal share
Joint ownership over the whole

Question 6

What is the effect of division or partition on co-ownership?

Answer 6

Once partition is effected or once the property is subdivided and distributed among the co-owners, the co-ownership is terminated.

Question 7

What is partial partition in co-ownership?

Answer 7

Partial partition occurs when the transferees of an undivided portion of the land allow a co-owner of the property to occupy a definite portion thereof and have not disturbed the same.

Question 8

What are the differences between co-ownership and partnership?

Answer 8

Co-ownership may exist without the necessity of a contract. Partnership requires the existence of a contract in order to arise.

A co-ownership does not possess a juridical personality distinct from the co-owners. A partnership has a juridical personality separate and distinct from that of each of the partners.

Co-ownership is only for the purpose of common enjoyment of the thing owned in common. In partnership, there must be an agreement to divide the profits among the partners.

In co-ownership, an agreement not to divide the property for more than ten (10) years is not valid with respect to the excess. In partnership, there is no limit as to its existence.

The death of a co-owner does not dissolve the co-ownership. The death of a partner brings about the dissolution of the partnership.

A co-owner may freely dispose of his share. A partner has no power of disposal to make the buyer a partner unless agreed upon by all the other partners.

A co-owner does not represent the co-ownership. A partner usually represents the partnership and may bind the partnership.

Question 9

What are the sources of co-ownership?

Answer 9

By law:

Co-ownership will arise if by the will of their owners two things of the same kind or different kinds are mixed.

Co-ownership will likewise arise if by the will of only one owner, but in good faith, two things of the same or different kinds are mixed or confused.

When a man and woman who are capacitated to marry each other, live exclusively with each other as husband and wife without the benefit of marriage or under a void marriage, the property acquired by both of them through their work or industry shall be governed by the rules on co-ownership. In cases of cohabitation not falling under Article 147 of the Family Code, only the properties acquired by both of the parties through their actual joint contribution of money, property, or industry shall be owned by them in common in proportion to their respective contributions.

By contract:
An agreement to keep the thing undivided for a certain period, not exceeding ten years, shall be valid. This term may be extended by a new agreement.

By succession:
Where there are two or more heirs, the whole estate of the decedent is, before its partition, owned in common by such heirs, subject to the payment of debts of the deceased. The testator may likewise prohibit the partition of the estate among the heirs for a period not to exceed twenty (20) years.

By fortuitous event or by chance:
Co-ownership will arise if two things of the same kind or different kinds are mixed by chance and the things are not separable without injury.

By occupancy:
As when two or more persons catch a wild pig or get forest products or when a hidden treasure is accidentally discovered by a stranger, who is not a trespasser, on the land of another.

Question 10

What governs co-ownership if the source is a contract?

Answer 10

The contract between the parties.

In default thereof, by the provisions of Articles 484 to 501 of the New Civil Code.

Question 11

How are the shares of co-owners determined?

Answer 11

The shares of 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.

Question 11

What governs co-ownership if the source is a special provision of law?

Answer 11

Special law.

Articles 484 to 501 shall be applied only in a suppletory character.

Question 12

What are the steps for determining the ideal share of co-owners?

Answer 12

Based on the agreement in the contract.

Proportional to their respective interests.

Presumed equal unless the contrary is proved.

Question 13

What does Article 472 state about the mixing of things by the will of their owners?

Answer 13

If by the will of their owners two things of the same or different kinds are mixed, or if the mixture occurs by chance, and the things are not separable without injury, each owner shall acquire a right proportional to the part belonging to him, bearing in mind the value of the things mixed or confused.

Question 14

What does Article 438 state about hidden treasure?

Answer 14

Hidden treasure belongs to the owner of the land, building, or other property on which it is found. If the discovery is made on the property of another, or of the State or any of its subdivisions, and by chance, one-half thereof shall be allowed to the finder.

If the finder is a trespasser, he shall not be entitled to any share of the treasure.

If the things found are of interest to science or the arts, the State may acquire them at their just price, which shall be divided in conformity with the rule stated.

Question 15

What was the ruling in Jimenez v. Fernandez regarding co-ownership?

Answer 15

Sulpicia Jimenez was declared the sole and absolute owner of the land in question with the right to its possession and enjoyment. Her uncle Carlos Jimenez’s pro-indiviso share in the properties then owned in co-ownership with his niece Sulpicia descended by intestacy to Sulpicia Jimenez alone because Carlos died without any issue or other heirs.

Question 15

What is the rule regarding the use of the thing owned in common by a co-owner according to Article 486?

Answer 15

Each co-owner may use the thing owned in common, provided it is 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.

Question 16

What are the conditions for a co-owner to use the entire thing owned in common?

Answer 16

A co-owner may use the entire thing so long as:

The use is in accordance with the purpose for which it is intended.

The use is in a manner not injurious to the interest of the other co-owners.

The use is in a manner that prevents the other co-owners from using it according to their rights.

Question 17

Can co-owners bring an action in ejectment?

Answer 17

Yes, any one of the co-owners of an immovable may bring an action in ejectment without joining the other co-owners, the suit being deemed instituted for the benefit of all. Only the co-owner who instituted the suit for recovery is the indispensable party thereto.

Question 18

What is the general rule for suits to recover properties in co-ownership?

Answer 18

In suits to recover properties, all co-owners are real parties in interest. However, any one of the co-owners may bring an action in ejectment.

Question 19

What is the exception to the general rule for suits to recover properties in co-ownership?

Answer 19

If the action is for the benefit of the plaintiff alone who claims to be the sole owner and entitled to the possession thereof, the action will not prosper unless he impleads the other co-owners who are indispensable parties.

Question 20

What does the term “ejectment” include?

Answer 20

The term “ejectment” includes suits of forcible entry, unlawful detainer, and all kinds of actions for the recovery of possession, including accion publiciana and reivindicatory action. It can also be applied to an action for recovery of possession of personal property.

Question 21

Can a co-owner file an action against another co-owner?

Answer 21

Yes, any co-owner may file an action under Article 487 not only against a third person but also against another co-owner who takes exclusive possession and asserts exclusive ownership of the property. The purpose of the action is to obtain recognition of the co-ownership, not to seek exclusion of the defendant from the property.

Question 22

What is the right of a co-owner to compel contribution to expenses and taxes?

Answer 22

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.

Question 23

What option does a co-owner have if they cannot contribute to the expenses and taxes?

Answer 23

A co-owner may exempt themselves from this obligation by renouncing so much of their undivided interest as may be equivalent to their share of the expenses and taxes.

Question 24

What is the general rule regarding the option to renounce the equivalent share of expenses and taxes?

Answer 24

The option to renounce the equivalent share of the expenses and taxes is given to the co-owner who cannot contribute.

Question 25

What is the exception to the general rule regarding the option to renounce the equivalent share of expenses and taxes?

Answer 25

If a co-owner refuses to pay their share in the expenses, the action should be an ordinary action for collection of a sum of money, and the co-owner who advances need not consent. No such waiver or renunciation shall be made if it is prejudicial to the co-ownership.

Question 26

What does Article 490 state about the necessary expenses for a house with different stories belonging to different owners?

Answer 26

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: The main and party walls, the roof, and 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. Each owner shall bear the cost of maintaining the floor of their 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. 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.

Question 26

What is the rule regarding repairs for preservation according to Article 489?

Answer 26

Repairs for preservation may be made at the will of one of the co-owners, but they must, if practicable, first notify their 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

Question 26

What are the types of expenses for preservation?

Answer 26

Necessary expenses - may be made at the will of one of the co-owners, but they must, if practicable, first notify their co-owners of the necessity for such repairs. The only effect of the failure to comply with the notice requirement is to place upon the co-owner who incurred the expenses the burden of proving the necessity of the repairs and the reasonableness of the expenses. Useful and ornamental expenses - shall be decided upon by a majority as determined in Article 492.

Question 27

What is the applicability of Article 490?

Answer 27

Applicable to a house which consists of several stories and the different stories belong to different owners. The titles of ownership do not specify the terms under which they should contribute to the necessary expenses. There exists no agreement on how they should contribute to the necessary expenses. This article finds no application to a condominium project, which is governed by Republic Act No. 4276, otherwise known as "The Condominium Act."

Question 27

What are the rules governing necessary expenses according to Article 490?

Answer 27

If the manner of contribution is specified in the title of ownership, the same shall govern. In the absence of such provision in the title of ownership, the agreement of the parties shall control. In the absence of such agreement, Article 490 shall apply.