CIVIL LAW

IX. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

B. Ownership

7. Co-Ownership

b. Quantitative and Qualitative Concept of Co-ownership

Co-ownership, as defined under Philippine law, occurs when an undivided thing or right belongs to different persons, with each having an ideal share in the entire property. This concept is extensively governed by Articles 484 to 501 of the Civil Code of the Philippines. Within co-ownership, there are both quantitative and qualitative aspects, which dictate the extent of ownership and the rights of co-owners.

1. Quantitative Concept of Co-ownership

The quantitative concept refers to the proportionate shares of co-owners in the co-owned property. This deals with ownership percentages or ideal shares, which are presumed to be equal unless otherwise stipulated or proven.

Presumption of Equal Shares (Article 485)
When the co-owners’ respective shares are not explicitly stated in a title or agreement, the law presumes their shares to be equal. However, this presumption is rebuttable, and evidence may be presented to show a different proportion of ownership.
Division of Benefits and Obligations (Article 485)
Each co-owner shares in the benefits (e.g., rents, profits) and obligations (e.g., taxes, repairs) of the co-owned property in proportion to their respective shares.
Proof of Unequal Shares
A co-owner claiming a greater share must present clear evidence to support their claim, such as contracts, deeds, or contributions toward the acquisition of the property.

2. Qualitative Concept of Co-ownership

The qualitative concept focuses on the nature of the relationship and rights of the co-owners over the co-owned property. While each co-owner has a distinct and proportionate ideal share, their rights pertain to the entire property, not just a specific physical portion of it.

Undivided Interest in the Whole (Article 484)
Each co-owner’s share is an ideal or abstract part of the property, not a specific, physical portion.
- Example: In a co-owned lot, a co-owner with a 30% share does not own a specific 30% portion of the lot but has a 30% interest in the entire property.
No Exclusive Rights to Specific Portions
Until a physical division or partition occurs, all co-owners have equal rights to the use and enjoyment of the entire property, subject to the proportional rights of others.

3. Key Rights of Co-Owners

Right to Use and Enjoy (Article 486)
Each co-owner has the right to use and enjoy the co-owned property, provided they do not infringe upon the rights of other co-owners. This use must be consistent with the property's nature and agreed purposes.
Right to Alienate Shares (Article 493)
Each co-owner may freely dispose of, assign, or encumber their ideal share without the need for consent from the other co-owners. However, this disposition only affects the owner’s ideal share, not the physical property unless partition has occurred.
Right to Demand Partition (Article 494)
Co-owners have the right to demand partition of the property at any time unless the partition is:
- Prohibited by law or contract (not exceeding 10 years); or
- The property’s indivisibility makes partition impractical.
Right to Reimbursement (Article 488)
A co-owner who spends for the preservation, repair, or improvement of the co-owned property has the right to reimbursement from the other co-owners proportionate to their shares.

4. Duties and Obligations of Co-Owners

Contribution to Expenses (Article 488)
Co-owners are obligated to contribute proportionally to:
- Taxes,
- Charges, and
- Necessary repairs or maintenance.
Duty to Respect Co-ownership
No co-owner may act in a manner that prejudices the co-ownership. Any use or enjoyment of the property must align with the interests of all co-owners.
Preservation of Common Property
A co-owner must take measures to preserve the property from loss or deterioration.

5. Termination of Co-ownership

Co-ownership may be terminated through partition or other means:

Voluntary Partition (Article 494)
Co-owners may agree to divide the property by mutual consent. If the property is divisible, physical partition may occur; otherwise, the property may be sold, and the proceeds divided proportionally.
Judicial Partition (Article 495)
If co-owners cannot agree, any co-owner may seek judicial partition. Courts may:
- Order the property divided if practicable; or
- Order its sale if division would result in the property's deterioration or diminish its value.
Termination by Consolidation
If one co-owner acquires the shares of all other co-owners, the co-ownership is terminated.

6. Practical Applications and Case Law

Philippine jurisprudence has clarified various aspects of co-ownership:

Use of Property
Co-owners must use the property in a manner that benefits all. For instance, building structures or fencing the property without the consent of others may result in liability for damages unless it is beneficial and consent is presumed.
Income from Co-owned Property
Income generated from co-owned property must be shared proportionally. Failure to do so may result in legal claims for accounting or damages.
Improvements and Reimbursements
Substantial improvements made without the consent of other co-owners are considered as being made at the sole risk and expense of the improving co-owner, unless they are necessary and urgent.

Conclusion

The quantitative and qualitative concepts of co-ownership under Philippine law highlight both the ideal shares of co-owners and their collective rights over the entire property. The balance between individual and collective interests forms the core of co-ownership. Careful adherence to the principles in Articles 484–501 ensures harmonious co-ownership, while mechanisms for partition provide an avenue for resolution should conflicts arise.