Co-Ownership | Ownership | PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

CIVIL LAW: PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

Topic: Co-Ownership

I. Definition and Nature of Co-Ownership

Co-ownership exists when the ownership of an undivided thing or right belongs to different persons. In this arrangement, each co-owner owns an ideal or abstract portion of the whole property, not any specific part thereof, unless a physical division is made.

II. Legal Basis

• Civil Code of the Philippines: Articles 484–501.

III. Characteristics of Co-Ownership

1. Plurality of Owners: Two or more persons own the property.
2. Undivided Shares: Each co-owner owns a proportionate, undivided share of the property.
3. Proportionate Ownership: The share of each co-owner is presumed equal unless proven otherwise (Art. 485).
4. Mutual Relations: Co-owners must respect each other's rights.

IV. Rights of Co-Owners

1. Right to Use and Enjoy (Art. 486):

   • Each co-owner has the right to use the entire property, provided it does not prejudice the rights of other co-owners.
   • Use of the property should be in accordance with the purpose intended.

2. Right to Fruits and Benefits (Art. 485, Art. 488):

   • Each co-owner is entitled to their proportionate share of the fruits, benefits, or profits derived from the property.

3. Right to Alienate or Encumber (Art. 493):

   • A co-owner may freely sell, mortgage, or otherwise dispose of their share in the co-owned property.
   • However, such acts do not bind the shares of other co-owners unless they consent.

4. Right to Participate in Decisions:

   • Decisions affecting the property require majority approval based on the shares of co-owners (Art. 492).
   • For acts of administration:
     • Majority consent suffices.
   • For acts of ownership:
     • Unanimous consent is necessary (e.g., sale of the entire property).

5. Right to Demand Partition (Art. 494):

   • A co-owner can demand the division of the co-owned property at any time, unless prohibited by agreement or the nature of the property.

V. Obligations of Co-Owners

1. Preservation of the Property (Art. 488):

   • Co-owners must bear expenses necessary for the preservation of the thing owned in common.

2. Sharing of Expenses (Art. 485):

   • Co-owners must proportionately share expenses for the preservation, repair, and improvement of the property.

3. Avoidance of Prejudicial Acts (Art. 489):

   • No co-owner may perform acts of ownership that would injure the rights of other co-owners.

VI. Partition of Co-Owned Property

1. General Rule: Any co-owner may demand partition at any time (Art. 494).

   • Exception:
     • Agreement among co-owners to prohibit partition for a period not exceeding 10 years.
     • Partition is impossible due to the nature of the property.

2. Modes of Partition:

   • Voluntary Partition: By mutual agreement of the co-owners.
   • Judicial Partition: By court intervention when co-owners cannot agree.

3. Effects of Partition:

   • Termination of the co-ownership.
   • Each co-owner becomes the exclusive owner of their respective portion.

4. Indivisibility of the Property (Art. 495):

   • When the property is indivisible, it may be:
     • Adjudicated to one co-owner who will indemnify others.
     • Sold, and the proceeds distributed among co-owners.

VII. Termination of Co-Ownership

1. By Partition: Physical or judicial separation of the property.
2. By Consolidation of Ownership: When one co-owner acquires all shares.
3. By Loss or Destruction of the Property: If the property is destroyed or lost, co-ownership terminates.
4. By Legal Causes: Any other legal means that terminate the co-ownership.

VIII. Remedies in Co-Ownership

1. Action for Partition (Art. 494):
   • Co-owners may file an action for judicial partition if voluntary partition is not possible.
2. Action to Prevent Prejudicial Acts:
   • Co-owners may seek injunctive relief if a co-owner commits acts detrimental to the property.
3. Accounting of Fruits and Expenses:
   • Co-owners may demand an accounting of income and expenses related to the property.

IX. Special Rules

1. Co-Ownership in Intestate Succession:
   • Upon the death of a person, heirs hold the estate in co-ownership until partition.
2. Co-Ownership in Partnerships:
   • Property held by a partnership is not considered co-ownership among partners; it belongs to the juridical entity.

X. Jurisprudence and Key Doctrines

1. Heirs in Co-Ownership:
   • Cruz v. Cruz: Heirs are co-owners of the estate prior to partition.
2. Acts Prejudicial to Co-Ownership:
   • Santos v. Santos: A co-owner cannot unilaterally make decisions detrimental to the property.
3. Right to Partition:
   • Lopez v. Ilustre: Courts will grant partition when demanded, unless prohibited by law.

Conclusion

Co-ownership is a temporary arrangement where the property is held by multiple persons. The Civil Code provides a framework to ensure the rights of all co-owners are protected while facilitating the eventual resolution of co-ownership, whether through voluntary or judicial partition.