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

CIVIL LAW > IX. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS > B. Ownership > 7. Co-Ownership > a. Definition

Definition of Co-Ownership

Co-ownership is a form of ownership where two or more persons own a single property in such a manner that each has an undivided interest over the entire property. This type of ownership is characterized by a communal or shared dominion over the property, with no exclusive right to any specific physical portion unless partitioned.

Legal Basis:

• Co-ownership is primarily governed by the Civil Code of the Philippines under Articles 484 to 501.

Essential Features of Co-Ownership

1. Plurality of Owners:
   • There are two or more owners (co-owners) who have concurrent rights over the property.
2. Undivided Shares:
   • Each co-owner is entitled to a proportionate share in the property but has no exclusive claim over any specific part until partition is made.
   • Example: If there are two co-owners and no specific allocation, each owns an undivided one-half share of the property.
3. Pro Indiviso Ownership:
   • The property is held "pro indiviso," meaning the co-owners have ownership over the whole and not specific parts.

Creation of Co-Ownership

Co-ownership may arise in various ways:

1. By Law:
   • Instances where the law mandates co-ownership, such as co-ownership of the conjugal partnership or absolute community property between spouses.
2. By Contract:
   • Co-ownership can be established through mutual agreement among individuals.
3. By Succession:
   • Co-heirs automatically become co-owners of the inherited property before partition.
4. By Other Acts or Causes:
   • Examples include prescription, donation, or mixed causes.

Rights of Co-Owners

Under Article 485 of the Civil Code:

1. Right to Use and Enjoy:
   • Each co-owner can use and enjoy the property in proportion to their share, provided they do not prejudice the interest of other co-owners.
2. Right to Share in Benefits and Income:
   • Each co-owner has the right to a proportional share of the benefits, such as rents, produce, or income derived from the property.
3. Right to Alienate or Dispose:
   • A co-owner may sell, assign, or mortgage their undivided share without the consent of the others but cannot dispose of specific parts of the property.
4. Right to Partition:
   • Any co-owner may demand partition unless prohibited by law or agreed upon for a specific period (Article 494).
5. Right to Contribution:
   • Each co-owner is obligated to contribute proportionately to the expenses for the preservation, maintenance, and taxes of the property (Article 488).

Duties and Limitations of Co-Owners

1. Duty to Preserve Property:
   • Co-owners must not act in a way that harms the property or diminishes its value.
2. Respect for Equal Rights:
   • Each co-owner must respect the equal rights of other co-owners to use and enjoy the property.
3. Prohibition on Exclusive Use:
   • No co-owner may exclusively occupy or use a specific part of the property unless agreed upon by all.
4. Unanimity for Major Decisions:
   • Acts of strict dominion, such as selling the entire property, require the unanimous consent of all co-owners (Article 491).

Termination of Co-Ownership

1. Partition:
   • Partition ends the co-ownership by dividing the property into distinct portions for each co-owner. This can be:
     • Voluntary Partition: By agreement among co-owners.
     • Judicial Partition: Ordered by the court in case of disagreement.
2. Consolidation of Ownership:
   • Co-ownership ends if one person acquires the shares of all other co-owners, thus becoming the sole owner.
3. Loss or Destruction of Property:
   • Co-ownership naturally terminates if the property ceases to exist.

Special Rules on Co-Ownership

1. Presumption of Equal Shares:
   • In the absence of proof to the contrary, it is presumed that co-owners have equal shares in the property (Article 485).
2. Actions Affecting the Property:
   • Acts of preservation may be undertaken by any co-owner without the need for the consent of others, but necessary expenses are reimbursable.
3. Improvements:
   • Useful or luxurious expenses made by one co-owner require the consent of the others. Otherwise, reimbursement is only allowed up to the extent of the value added to the property.

Distinction from Other Forms of Ownership

1. Co-Ownership vs. Joint Ownership:
   • In co-ownership, each co-owner has a share in the entire property, while in joint ownership, ownership is tied to specific portions.
2. Co-Ownership vs. Condominium Ownership:
   • Condominium ownership involves exclusive ownership of specific units and shared ownership of common areas, whereas co-ownership involves shared ownership of the entire property.

Relevant Jurisprudence

1. Heirs of Calixto Lim vs. Heirs of Gavino Ramos (G.R. No. 160805, March 12, 2007):
   • Clarified the nature of co-ownership in the context of inherited properties.
2. Tigno vs. Aquino (G.R. No. 133921, June 28, 2001):
   • Affirmed the right of a co-owner to demand partition at any time unless prohibited.

In conclusion, co-ownership is a dynamic legal relationship that balances shared rights and obligations among co-owners. Its regulation under the Civil Code ensures fairness, clarity, and the equitable use of shared property while providing remedies for resolving disputes.