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Property Co-Ownership

This document defines and discusses co-ownership under Philippine law. It provides that co-ownership exists when ownership of an undivided thing or right belongs to different persons. Co-ownership can arise through contracts, special legal provisions, or default legal rules. The document outlines the key characteristics of co-ownership, including that co-owners have common dominion over an undivided property and each can dispose of their own undivided share. It also distinguishes between tenancy in common and joint tenancy forms of co-ownership.
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0% found this document useful (0 votes)
476 views19 pages

Property Co-Ownership

This document defines and discusses co-ownership under Philippine law. It provides that co-ownership exists when ownership of an undivided thing or right belongs to different persons. Co-ownership can arise through contracts, special legal provisions, or default legal rules. The document outlines the key characteristics of co-ownership, including that co-owners have common dominion over an undivided property and each can dispose of their own undivided share. It also distinguishes between tenancy in common and joint tenancy forms of co-ownership.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Article 484.

There is co-ownership whenever the ownership of an undivided - There must be no existing and valid conjugal partnership, as when either is
thing or right belongs to different persons. already married to someone else
- In common law relationship Art 144 governs. ;
In default of contracts, or of special provisions, co-ownership shall be governed - Article 1144. The following actions must be brought within ten years from the
by the provisions of this Title. (392) time the right of action accrues:
(1) Upon a written contract;
CO-OWNERSHIP DEFINED
(2) Upon an obligation created by law;
 State where an undivided thing or right belongs to 2 or more persons. (3) Upon a judgment. (n)
 Right of common dominion which 2 or more persons have in a spiritual or - If actual contribution of a party is not proved, there will be no co-ownership
ideal part of a thing which is not physically divided. and no presumption of equal shares
 (x) a juridical person (2) By contract
 Co-owners can only litigate in their individual capcities (3) By chance (Commixtion, confusion, hidden treasure)
 SANCHEZ ROMAN –the right of common dominion which 2 or more (4) By occupation or occupancy
persons have a spiritual part of a thing, not materially or physically - Because of implied agreement or contract between two persons
divided - Example : hunting
 MANRESA –manifestation of the private ownership, which instead of (5) By succession or will
being exercised by the owner in an exclusive manner over the things - In the case of intestate heirs before partition.
subject to it  is exercised by 2 or more owners and the undivided thing - It has been held that although co-heirs are really co-owners, the exercise of
or right which it refers to and one and the same right of legal redemption, the rule concerning co-heirs, Art 1067 must apply
and not that concerning co-owners.
DOCTRINES - Article 1067. Expenses for support, education, medical attendance, even in
extraordinary illness, apprenticeship, ordinary equipment, or customary gifts
 Possession of a co-owner, like that of a trustee shall not be regarded as
are not subject to collation. (1041)
adverse but in fact beneficial to them
- If however after partition of the hereditary estate, it is decided that some of the
 Co-owner can only alienate his pro-indiviso share in the co-owned
co-heirs will continue to be co-owners of certain portion of the estate, the rule
property
on legal redemption will now be the rule concerning co-owners
 Co-owner may lease his undivided interest to a third party
 Co-owner of an undivided parcel of land is an owner of the whole, over 1067 applies Before partition : in exercise of
the whole, he exercises the right of dominion ; BUT he is at the same time right of legal redemption
the owner of a portion which is truly abstract Rule on co-owners applies After partition + decision to
continue acting as co-owners
- Res judiciata applies in adjudications of co-ownership in cadastral proceedings

KINDS OF CO-OWNERSHIP
WHAT GOVERNS CO-OWNERSHIP SUBJECT MATTER
Undivided thing
1. Contracts
Undivided right
2. Special legal provision
3. Provision of the title on co-ownership SOURCE
Contractual
SOURCES OF CO-OWNERSHIP Non-contractual
RIGHT OF CO-OWNERS
(1) By law
Tenancy in common - he may not ordinarily acquire exclusive ownership of the property held in
Joint tenancy common thru prescription

CO-OWNERSHIP V. ORDINARY PARTNERSHIP


TENANCY IN COMMON JOINT TENANCY
(CO-OWNERSHIP) CO-OWNERSHIP PARTNERSHIP
(1) Involves physical whole (1) Involves physical whole No legal personality Has legal or juridical personality
- There is identical (abstract - BUT there is no ideal division Created by contract or by other things Created by contract only (express or
division) - All of them own the whole thing implied)
- Each co-owner : owner of Purpose –collective enjoyment Purpose –profit
ideal share Agreement  exist for 10 years valid; No term limit
(2) Each co-owner may (2) Each co-owner may not dispose of his MAX : 20 years
dispose of his individual own share No mutual representation There is mutual representation
or undivided share - Without the consent of ALL the rest, Not dissolved by death or incapacity of Dissolved by death or incapacity of
- Without the other’s because he really has NO IDEAL co-owner partner
consent share Can dispose of his share without the Cannot substitute another as partner in
(3) If the co-owner dies, (3) If a joint-tenant dies consent of others his place without the consent of others
- his share goes to his own - his share goes by accretion to the Profits must always depend on Profits may be stipulated upom
heirs other joint-tenants by virtue of their proportionate share
survivorship or jus accrecendi
(4) Co-owner : Minor (4) If one joint-tenant is under a legal
- Does not benefit the disability (like minority) CO-OWNERSHIP CONJUGAL PARTNERSHIP
others for the purpose of - this benefits the other against whom May arise upon contract Arises only because of the marriage
prescription prescription will not run contract
- Prescription runs against Sex of the co-owners is immaterial One must be a male, the other female
non-minors Co-owners may be two or more Conjugal owners are always only two
Profits are proportional to respective Profits are generally 50-50 unless the
interest contrary stipulation is in a marriage
CHARACTERISTICS OF CO-OWNERSHIP settlement
Death of one does not dissolve the co- Death of either the husband or wife
(1) There must be more than one subject or owner
ownership dissolves the conjugal partnership
(2) There is one physical whole divided into IDEAL shares
Generally all the co-owners administer Generally, the husband is the
(3) Each IDEAL share is definite in amount administrator
- But not physically segregated from the rest Co-ownership is discouraged by law Encouraged by law to provide better
family solidarity
(4) Regarding the physical whole,
- Segregation and conveyance of a determined portion of the properties involved.
- Each co-owner must respect each other in common use, enjoyment and
Article 485. The share of the co-owners, in the benefits as well as in the charges,
preservation of the Physical whole
shall be proportional to their respective interests. Any stipulation in a contract
- The interest of the others must indeed not be disregarded to the contrary shall be void.

(5) It is not juridical person; it has no juridical personality The portions belonging to the co-owners in the co-ownership shall be presumed
equal, unless the contrary is proved. (393a)
(6) Co-owner is in a sense a trustee for the other co-owners
SHARES IN BENEFITS AND CHARGES - Allows co-owner to bring an action for ejectment which covers all kinds of
actions for the recovery of the possession
- Proportional to the interest of each.
- Contrary stipulation is void –it runs against the nature of co-ownership ACTIONS COVERED BY THE TERM “EJECTMENT”
- Each co-owner shares proportionately to the accretion or alluvium of the
property. Forcible entry
- Increase or decrease of property benefits all - Summary action to recover material or physical possession of real
property when a person originally in possession was deprived thereof
TAXES by force, intimidation , strategy, threat or stealth
- Prescription : within 1 year from dispossession ; except for stealth :
- Co-owner who has paid the taxes to prevent forfeiture of the common property from time of discovery
for tax delinquency: could compel contribution from his co-owners Unlawful detainer
- If he has not paid yet  (x) compel - When possession by a landlord, vendor, vendee or other persons of any
- Why? Tax is not due to him but to the government land or building is being unlawfully withheld after the expiration or
termination of the right to hold possession by virtue of any contract,
express or implied
Article 486. Each co-owner may use the thing owned in common, provided he Accion Publiciana
does so in accordance with the purpose for which it is intended and in such a - Intended for the recovery of better right to posess
way as not to injure the interest of the co-ownership or prevent the other co- - Prescriptive period within 10 years
owners from using it according to their rights. The purpose of the co-ownership - Possession de jure
- Judgment is conclusive only on the question of possession, and not that
may be changed by agreement, express or implied. (394a)
of ownership. It does not bind the title or affect the ownership of the
RIGHT TO USE PROPERTY OWNED IN COMMON property involve
Accion reinvindicatoria
- grants each co-owner the right to use the property for the purpose intended - Action to recover ownership over real property
- BUT: - 10/30 years depending on whether there is ordinary or extra-ordinary
 Interest of the co-ownership must not be injured or prejudiced prescription
 Other co-owners must not be prevented from using it - An ordinary civil proceeding to recover possession based on
ownership.
APPARTMENT HOUSES - The issue involved is ownership, which ordinarily includes possession
Quieting of title
- Accessorias or apartments built either for residential purposes or for stories; - Action to remove a cloud or doubt from the title of real estate
accordingly, the occupant may generally use them for either of such purposes Replevin
- legal remedy which enables a person to recover personal property taken
wrongfully or unlawfully, pending a final determination by a court of
law, and to obtain compensation for resulting losses
- Without necessity of joining all the other co-owners as plaintiffs
- Said action is deemed instituted for the benefit of all

REASON FOR THE ARTICLE


Article 487. Any one of the co-owners may bring an action in ejectment. (n)
- A co-owner owns and possess the whole; moreover, ejectment cases are urgent
What’s new
and summary in character
- It is understood of course that the action is being instituted for ALL
- (x) bringing the case only for himself  such action is not allowed to prosper
REIMBURSEMENT FOR THE ESTATE OF THE DECEASED CO-OWNER

Article 488. Each co-owner shall have a right to compel the other co-owners to - Provided no renunciation has been made
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 WHEN RENUNCIATION CANNOT BE IMPLIED
obligation by renouncing so much of his undivided interest as may be
- (x) be implied by mere refusal to pay the proportionate share
equivalent to his share of the expenses and taxes. No such waiver shall be made
- Refusal to pay but no renunciation, creditors can still collect form the
if it is prejudicial to the co-ownership. (395a)
delinquent co-owner
EXPENSES FOR PRESEVATION - Other co-owners do not have to intervene, they are not the ones prejudiced.

- Co-owner has right to compel the other to share in the expenses of preservation, EXAMPLE:
even if incurred without prior notification to them
- BUT he must notify [if practicable]

HOW A CO-OWNER MAY EXEMPT HIMSELF

- A co-owner may exempt himself from this duty to reimburse by


RENNOUNCING so much of his undivided share as may be equivalent to his
share of the expenses and taxes
:
- ** one ronouncing does not necessarily renounce his entire interest in the co-
ownership
- ** renouncing cannot be done if the co-ownership will be prejudiced
Article 489. Repairs for preservation may be made at the will of one of the co-
owners, but he must, if practicable, 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 WHO MUST CONSENT


WHAT RENOUNCING REQUIRES
Situation How many
Kind of renunciation What is required Repairs, ejectment action 1
If renouncing is in favor of the creditor Creditor must give his consent Alteration or acts of ownership ALL
If renouncing is in favor of the other Consent of the Other co-owners and All others, useful improvements, FINANCIAL MAJORITY
co-owners, a novation (substitution of the creditor luxurious embellishments and better - (x) numerical
debtor) enjoyment
** Creditors consent is needed only if the expenses have already been incurred,
otherwise there would as yet be no creditors
RULE AS TO NECESSARY REPAIRS
WHAT REIMBURSEMENT COVERS
- A co-owner can make necessary repairs even against the opposition of the rest
- Only NECESSARY expenses of the co-owners
- Not the useful improvements, even if the value of the property is thereby
WHY?
increased
- Because negligence of the others should not prejudice him. the expense of all, except the owner of the ground floor and the owner of the
- If he has money, he may advance funds and recover later from the others first story; and so on successively. (396)
- Other co-owners will liable proportionately to the creditors; they may renounce
their shares in the co-ownership in favor of the creditors ; provided that the PERPENDICULAR CO-OWNERSHIP
creditors agree –Datio in solutum “A giving in payment.”A payment made in
- Different stories belong to different persons
order to discharge a duty.
- This is still co-ownership for there is some unity in the use or ornamentation of
- Or make the renouncing in favor of the conscientious co-owner; provided that
the property particularly the main and common walls, roof, stairs etc.
the co-owner agrees to assume that obligation (DACION EN PAGO) –novation
- Uncommon in our country
- Otherwise, no renouncing can be done
- Rules enumerated in this article apply only if there is no contrary provision in
PROBLEM (WHERE NECESSARY REPAIRS ARE NOT UNDERTAKEN) the titles of ownership or agreement

- Those who made unjustified opposition shall be responsible for damages Horizontal co-ownership When one story units all set in the
ground
RULE IF NO NOTIFICATION WAS MADE Perpendicular co-ownership Different story belongs to different
persons
- He must if practicable, first notify his co-owners Condominium Combination of both perpendicular
- Practicable = something can be done and horizontal co-ownership
- If it was practicable and no notification was made  the rest is still responsible THE RULES THEMSELVES
if the repairs are essential
- Remember: even if the rest would expressly object the repairs can go on just  Proportionate contribution is required for the preservation of
the same (1) Main walls
- However in view of the lack of notification, the others may state in their behalf, (2) Party walls
that had they been notified, they could have helped and look for cheaper labor (3) Roof
and materials. (4) Other things used in common
 In such case, co-owner who neglected to make the notification must take  Each floor owner must bear the expenses of his floor
care of the difference  Stairs are to be maintained from story to story, by the users

Article 490. Whenever the different stories of a house belong to different GROUND FLOOR DISTICT FROM FIRST STORY
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 - If may ground floor, hindi yun yung first story
the subject, the following rules shall be observed: - Floor is where you get off or live. Story is a measurement of height.

You would say:


(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 - I live on the 10th floor.
the story belonging to each; - That building is 30 stories high.
(2) Each owner shall bear the cost of maintaining the floor of his story; the You would not say:
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; - I live on the 10th story.
- That building is 30 floors high.
(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 WHEN IS OWNERSHIP ACQUIRED
ground floor; the stairs from the first to the second story shall be preserved at
- Buyer of a unit acquires ownership only after he has paid in full its purchase
price

SEPARATE INTERESTS

- Ownership of a condominium unit is the separate interest of the owner which


makes him automatically a shareholder of the condominium

DOCTRINES

- HLURB: jurisdiction over disputes, as in the case when the subdivision


developer mortgaged the subdivision without notifying the installment buyer
- All incorporators of a condominium must be an owner of a unit
- PD 947: PRESIDENTIAL DECREE GRANTING THE DOMESTIC
SATELLITE PHILIPPINES, INCORPORATED A FRANCHISE TO
INSTALL, MAINTAIN AND OPERATE, IN ANY PLACE IN THE
PHILIPPINES STATIONS FOR PROVIDING TELECOMMUNICATION
SERVICES THROUGH THE USE OF SATELLITES,
TELECOMMUNICATIONS (RADIO, TELEGRAPH, TELEPHONE AND
TELEVISION SYSTEMS), LINES, CIRCUITS, WIRE AND/OR WIRELESS
TO SERVE ALL THOSE NEEDING SUCH SERVICE ON LAND, AT SEA
AND IN THE AIR
 Designed to stem the tide of fraudulent manipulations perpetrated by
unscrupulous subdivisions and condominium sellers and operators –such
as failure to deliver titles to buters
- In a condominium, common areas and facilities (x) included in in the units
(a) Description of the land on which the building or buildings and improvements are or
are to be located;
REPUBLIC ACT 4726
REPUBLIC ACT NO. 4726 June 18, 1966 (b) Description of the building or buildings, stating the number of stories and
basements, the number of units and their accessories, if any;
AN ACT TO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS FOR ITS
CREATION, AND GOVERN ITS INCIDENTS. (c) Description of the common areas and facilities;

Sec. 1. The short title of this Act shall be "The Condominium Act". (d) A statement of the exact nature of the interest acquired or to be acquired by the
purchaser in the separate units and in the common areas of the condominium project. Where
Sec. 2. A condominium is an interest in real property consisting of separate interest in a title to or the appurtenant interests in the common areas is or is to be held by a condominium
unit in a residential, industrial or commercial building and an undivided interest in common, corporation, a statement to this effect shall be included;
directly or indirectly, in the land on which it is located and in other common areas of the
building. A condominium may include, in addition, a separate interest in other portions of such (e) Statement of the purposes for which the building or buildings and each of the units
real property. Title to the common areas, including the land, or the appurtenant interests in are intended or restricted as to use;
such areas, may be held by a corporation specially formed for the purpose (hereinafter known
as the "condominium corporation") in which the holders of separate interest shall automatically (f) A certificate of the registered owner of the property, if he is other than those
be members or shareholders, to the exclusion of others, in proportion to the appurtenant executing the master deed, as well as of all registered holders of any lien or encumbrance on
interest of their respective units in the common areas. the property, that they consent to the registration of the deed;

The real right in condominium may be ownership or any other interest in real property (g) The following plans shall be appended to the deed as integral parts thereof:
recognized by law, on property in the Civil Code and other pertinent laws.
(1) A survey plan of the land included in the project, unless a survey plan of the same
Sec. 3. As used in this Act, unless the context otherwise requires: property had previously bee filed in said office;

(a) "Condominium" means a condominium as defined in the next preceding section. (2) A diagrammatic floor plan of the building or buildings in the project, in sufficient
detail to identify each unit, its relative location and approximate dimensions;
(b) "Unit" means a part of the condominium project intended for any type of
independent use or ownership, including one or more rooms or spaces located in one or more (h) Any reasonable restriction not contrary to law, morals or public policy regarding the
floors (or part or parts of floors) in a building or buildings and such accessories as may be right of any condominium owner to alienate or dispose of his condominium.
appended thereto.
The enabling or master deed may be amended or revoked upon registration of an instrument
(c) "Project" means the entire parcel of real property divided or to be divided in executed by the registered owner or owners of the property and consented to by all registered
condominiums, including all structures thereon, holders of any lien or encumbrance on the land or building or portion thereof. The term
"registered owner" shall include the registered owners of condominiums in the project. Until
(d) "Common areas" means the entire project excepting all units separately granted or registration of a revocation, the provisions of this Act shall continue to apply to such property.
held or reserved.
Sec. 5. Any transfer or conveyance of a unit or an apartment, office or store or other space
(e) "To divide" real property means to divide the ownership thereof or other interest therein, shall include the transfer or conveyance of the undivided interests in the common areas
therein by conveying one or more condominiums therein but less than the whole thereof. or, in a proper case, the membership or shareholdings in the condominium corporation:
Provided, however, That where the common areas in the condominium project are owned by
Sec. 4. The provisions of this Act shall apply to property divided or to be divided into the owners of separate units as co-owners thereof, no condominium unit therein shall be
condominiums only if there shall be recorded in the Register of Deeds of the province or city in conveyed or transferred to persons other than Filipino citizens, or corporations at least sixty
which the property lies and duly annotated in the corresponding certificate of title of the land, percent of the capital stock of which belong to Filipino citizens, except in cases of hereditary
if the latter had been patented or registered under either the Land Registration or Cadastral succession. Where the common areas in a condominium project are held by a corporation, no
Acts, an enabling or master deed which shall contain, among others, the following: transfer or conveyance of a unit shall be valid if the concomitant transfer of the appurtenant
membership or stockholding in the corporation will cause the alien interest in such corporation in the same proportion as their interests in the common areas: Provided, however, That a
to exceed the limits imposed by existing laws. partition shall be made only upon a showing:

Sec. 6. Unless otherwise expressly provided in the enabling or master deed or the (a) That three years after damage or destruction to the project which renders material
declaration of restrictions, the incidents of a condominium grant are as follows: part thereof unit for its use prior thereto, the project has not been rebuilt or repaired
substantially to its state prior to its damage or destruction, or
(a) The boundary of the unit granted are the interior surfaces of the perimeter walls,
floors, ceilings, windows and doors thereof. The following are not part of the unit bearing (b) That damage or destruction to the project has rendered one-half or more of the units
walls, columns, floors, roofs, foundations and other common structural elements of the therein untenantable and that condominium owners holding in aggregate more than thirty
building; lobbies, stairways, hallways, and other areas of common use, elevator equipment and percent interest in the common areas are opposed to repair or restoration of the project; or
shafts, central heating, central refrigeration and central air-conditioning equipment, reservoirs,
tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits, (c) That the project has been in existence in excess of fifty years, that it is obsolete and
wires and other utility installations, wherever located, except the outlets thereof when located uneconomic, and that condominium owners holding in aggregate more than fifty percent
within the unit. interest in the common areas are opposed to repair or restoration or remodeling or modernizing
of the project; or
(b) There shall pass with the unit, as an appurtenance thereof, an exclusive easement
for the use of the air space encompassed by the boundaries of the unit as it exists at any (d) That the project or a material part thereof has been condemned or expropriated and
particular time and as the unit may lawfully be altered or reconstructed from time to time. Such that the project is no longer viable, or that the condominium owners holding in aggregate more
easement shall be automatically terminated in any air space upon destruction of the unit as to than seventy percent interest in the common areas are opposed to continuation of the
render it untenantable. condominium regime after expropriation or condemnation of a material portion thereof; or

(c) Unless otherwise, provided, the common areas are held in common by the holders (e) That the conditions for such partition by sale set forth in the declaration of
of units, in equal shares, one for each unit. restrictions, duly registered in accordance with the terms of this Act, have been met.

(d) A non-exclusive easement for ingress, egress and support through the common Sec. 9. The owner of a project shall, prior to the conveyance of any condominium therein,
areas is appurtenant to each unit and the common areas are subject to such easements. register a declaration of restrictions relating to such project, which restrictions shall constitute a
lien upon each condominium in the project, and shall insure to and bind all condominium
(e) Each condominium owner shall have the exclusive right to paint, repaint, tile, wax, owners in the project. Such liens, unless otherwise provided, may be enforced by any
paper or otherwise refinish and decorate the inner surfaces of the walls, ceilings, floors, condominium owner in the project or by the management body of such project. The Register of
windows and doors bounding his own unit. Deeds shall enter and annotate the declaration of restrictions upon the certificate of title
covering the land included within the project, if the land is patented or registered under the
(f) Each condominium owner shall have the exclusive right to mortgage, pledge or Land Registration or Cadastral Acts.
encumber his condominium and to have the same appraised independently of the other
condominiums but any obligation incurred by such condominium owner is personal to him. The declaration of restrictions shall provide for the management of the project by anyone of the
following management bodies: a condominium corporation, an association of the condominium
(g) Each condominium owner has also the absolute right to sell or dispose of his owners, a board of governors elected by condominium owners, or a management agent elected
condominium unless the master deed contains a requirement that the property be first offered by the owners or by the board named in the declaration. It shall also provide for voting
to the condominium owners within a reasonable period of time before the same is offered to majorities quorums, notices, meeting date, and other rules governing such body or bodies.
outside parties;
Such declaration of restrictions, among other things, may also provide:
Sec. 7. Except as provided in the following section, the common areas shall remain
undivided, and there shall be no judicial partition thereof. (a) As to any such management body;

Sec. 8. Where several persons own condominiums in a condominium project, an action (1) For the powers thereof, including power to enforce the provisions of the
may be brought by one or more such persons for partition thereof by sale of the entire project, declarations of restrictions;
as if the owners of all of the condominiums in such project were co-owners of the entire project
(2) For maintenance of insurance policies, insuring condominium owners against loss Sec. 10. Whenever the common areas in a condominium project are held by a condominium
by fire, casualty, liability, workmen's compensation and other insurable risks, and for bonding corporation, such corporation shall constitute the management body of the project. The
of the members of any management body; corporate purposes of such a corporation shall be limited to the holding of the common areas,
either in ownership or any other interest in real property recognized by law, to the management
(3) Provisions for maintenance, utility, gardening and other services benefiting the of the project, and to such other purposes as may be necessary, incidental or convenient to the
common areas, for the employment of personnel necessary for the operation of the building, accomplishment of said purposes. The articles of incorporation or by-laws of the corporation
and legal, accounting and other professional and technical services; shall not contain any provision contrary to or inconsistent with the provisions of this Act, the
enabling or master deed, or the declaration of restrictions of the project. Membership in a
(4) For purchase of materials, supplies and the like needed by the common areas; condominium corporation, regardless of whether it is a stock or non-stock corporation, shall
not be transferable separately from the condominium unit of which it is an appurtenance. When
(5) For payment of taxes and special assessments which would be a lien upon the entire a member or stockholder ceases to own a unit in the project in which the condominium
project or common areas, and for discharge of any lien or encumbrance levied against the corporation owns or holds the common areas, he shall automatically cease to be a member or
entire project or the common areas; stockholder of the condominium corporation.

(6) For reconstruction of any portion or portions of any damage to or destruction of the Sec. 11. The term of a condominium corporation shall be co-terminus with the duration of
project; the condominium project, the provisions of the Corporation Law to the contrary
notwithstanding.
(7) The manner for delegation of its powers;
Sec. 12. In case of involuntary dissolution of a condominium corporation for any of the
(8) For entry by its officers and agents into any unit when necessary in connection with causes provided by law, the common areas owned or held by the corporation shall, by way of
the maintenance or construction for which such body is responsible; liquidation, be transferred pro-indiviso and in proportion to their interest in the corporation to
the members or stockholders thereof, subject to the superior rights of the corporation creditors.
(9) For a power of attorney to the management body to sell the entire project for the Such transfer or conveyance shall be deemed to be a full liquidation of the interest of such
benefit of all of the owners thereof when partition of the project may be authorized under members or stockholders in the corporation. After such transfer or conveyance, the provisions
Section 8 of this Act, which said power shall be binding upon all of the condominium owners of this Act governing undivided co-ownership of, or undivided interest in, the common areas in
regardless of whether they assume the obligations of the restrictions or not. condominium projects shall fully apply.

(b) The manner and procedure for amending such restrictions: Provided, That the vote Sec. 13. Until the enabling or the master deed of the project in which the condominium
of not less than a majority in interest of the owners is obtained. corporation owns or holds the common area is revoked, the corporation shall not be voluntarily
dissolved through an action for dissolution under Rule 104 of the Rules of Court except upon a
(c) For independent audit of the accounts of the management body; showing:

(d) For reasonable assessments to meet authorized expenditures, each condominium (a) That three years after damage or destruction to the project in which the corporation
unit to be assessed separately for its share of such expenses in proportion (unless otherwise owns or holds the common areas, which damage or destruction renders a material part thereof
provided) to its owners fractional interest in any common areas; unfit for its use prior thereto, the project has not been rebuilt or repaired substantially to its
state prior to its damage or destruction; or
(e) For the subordination of the liens securing such assessments to other liens either
generally or specifically described; (b) That damage or destruction to the project has rendered one-half or more of the units
therein untenantable and that more than thirty percent of the members of the corporation, if
(f) For conditions, other than those provided for in Sections eight and thirteen of this non-stock, or the shareholders representing more than thirty percent of the capital stock entitled
Act, upon which partition of the project and dissolution of the condominium corporation may to vote, if a stock corporation, are opposed to the repair or reconstruction of the project, or
be made. Such right to partition or dissolution may be conditioned upon failure of the
condominium owners to rebuild within a certain period or upon specified inadequacy of (c) That the project has been in existence in excess of fifty years, that it is obsolete and
insurance proceeds, or upon specified percentage of damage to the building, or upon a decision uneconomical, and that more than fifty percent of the members of the corporation, if non-stock,
of an arbitrator, or upon any other reasonable condition. or the stockholders representing more than fifty percent of the capital stock entitled to vote, if a
stock corporation, are opposed to the repair or restoration or remodeling or modernizing of the
project; or
purposes of the "condominium owner's" copy of the certificate of title. No conveyance of
(d) That the project or a material part thereof has been condemned or expropriated and condominiums or part thereof, subsequent to the original conveyance thereof from the owner
that the project is no longer viable, or that the members holding in aggregate more than seventy of the project, shall be registered unless accompanied by a certificate of the management body
percent interest in the corporation, if non-stock, or the stockholders representing more than of the project that such conveyance is in accordance with the provisions of the declaration of
seventy percent of the capital stock entitled to vote, if a stock corporation, are opposed to the restrictions of such project.
continuation of the condominium regime after expropriation or condemnation of a material
portion thereof; or In cases of condominium projects registered under the provisions of the Spanish Mortgage Law
or Act 3344, as amended, the registration of the deed of conveyance of a condominium shall be
(e) That the conditions for such a dissolution set forth in the declaration of restrictions sufficient if the Register of Deeds shall keep the original or signed copy thereof, together with
of the project in which the corporation owns of holds the common areas, have been met. the certificate of the management body of the project, and return a copy of the deed of
conveyance to the condominium owner duly acknowledge and stamped by the Register of
Sec. 14. The condominium corporation may also be dissolved by the affirmative vote of all Deeds in the same manner as in the case of registration of conveyances of real property under
the stockholders or members thereof at a general or special meeting duly called for the said laws.
purpose: Provided, That all the requirements of Section sixty-two of the Corporation Law are
complied with. Sec. 19. Where the enabling or master deed provides that the land included within a
condominium project are to be owned in common by the condominium owners therein, the
Sec. 15. Unless otherwise provided for in the declaration of restrictions upon voluntary Register of Deeds may, at the request of all the condominium owners and upon surrender of all
dissolution of a condominium corporation in accordance with the provisions of Sections their "condominium owner's" copies, cancel the certificates of title of the property and issue a
thirteen and fourteen of this Act, the corporation shall be deemed to hold a power of attorney new one in the name of said condominium owners as pro-indiviso co-owners thereof.
from all the members or stockholders to sell and dispose of their separate interests in the
project and liquidation of the corporation shall be effected by a sale of the entire project as if Sec. 20. An assessment upon any condominium made in accordance with a duly registered
the corporation owned the whole thereof, subject to the rights of the corporate and of declaration of restrictions shall be an obligation of the owner thereof at the time the assessment
individual condominium creditors. is made. The amount of any such assessment plus any other charges thereon, such as interest,
costs (including attorney's fees) and penalties, as such may be provided for in the declaration of
Sec. 16. A condominium corporation shall not, during its existence, sell, exchange, lease or restrictions, shall be and become a lien upon the condominium assessed when the management
otherwise dispose of the common areas owned or held by it in the condominium project unless body causes a notice of assessment to be registered with the Register of Deeds of the city or
authorized by the affirmative vote of all the stockholders or members. province where such condominium project is located. The notice shall state the amount of such
assessment and such other charges thereon a may be authorized by the declaration of
Sec. 17. Any provision of the Corporation Law to the contrary notwithstanding, the by-laws restrictions, a description of the condominium, unit against which same has been assessed, and
of a condominium corporation shall provide that a stockholder or member shall not be entitled the name of the registered owner thereof. Such notice shall be signed by an authorized
to demand payment of his shares or interest in those cases where such right is granted under the representative of the management body or as otherwise provided in the declaration of
Corporation Law unless he consents to sell his separate interest in the project to the corporation restrictions. Upon payment of said assessment and charges or other satisfaction thereof, the
or to any purchaser of the corporation's choice who shall also buy from the corporation the management body shall cause to be registered a release of the lien.
dissenting member or stockholder's interest. In case of disagreement as to price, the procedure
set forth in the appropriate provision of the Corporation Law for valuation of shares shall be Such lien shall be superior to all other liens registered subsequent to the registration of said
followed. The corporation shall have two years within which to pay for the shares or furnish a notice of assessment except real property tax liens and except that the declaration of
purchaser of its choice from the time of award. All expenses incurred in the liquidation of the restrictions may provide for the subordination thereof to any other liens and encumbrances.
interest of the dissenting member or stockholder shall be borne by him.
Such liens may be enforced in the same manner provided for by law for the judicial or extra-
Sec. 18. Upon registration of an instrument conveying a condominium, the Register of judicial foreclosure of mortgages of real property. Unless otherwise provided for in the
Deeds shall, upon payment of the proper fees, enter and annotate the conveyance on the declaration of restrictions, the management body shall have power to bid at foreclosure sale.
certificate of title covering the land included within the project and the transferee shall be The condominium owner shall have the same right of redemption as in cases of judicial or
entitled to the issuance of a "condominium owner's" copy of the pertinent portion of such extra-judicial foreclosure of mortgages.
certificate of title. Said "condominium owner's" copy need not reproduce the ownership status
or series of transactions in force or annotated with respect to other condominiums in the Sec. 21. No labor performed or services or materials furnished with the consent of or at the
project. A copy of the description of the land, a brief description of the condominium request of a condominium owner or his agent or his contractor or subcontractor, shall be the
conveyed, name and personal circumstances of the condominium owner would be sufficient for basis of a lien against the condominium of any other condominium owner, unless such other
owners have expressly consented to or requested the performance of such labor or furnishing
of such materials or services. Such express consent shall be deemed to have been given by the
owner of any condominium in the case of emergency repairs of his condominium unit. Labor
performed or services or materials furnished for the common areas, if duly authorized by the
management body provided for in a declaration of restrictions governing the property, shall be
deemed to be performed or furnished with the express consent of each condominium owner.
The owner of any condominium may remove his condominium from a lien against two or more
condominiums or any part thereof by payment to the holder of the lien of the fraction of the
total sum secured by such lien which is attributable to his condominium unit.

Sec. 22. Unless otherwise provided for by the declaration of restrictions, the management
body, provided for herein, may acquire and hold, for the benefit of the condominium owners,
tangible and intangible personal property and may dispose of the same by sale or otherwise;
and the beneficial interest in such personal property shall be owned by the condominium
owners in the same proportion as their respective interests in the common areas. A transfer of a
condominium shall transfer to the transferee ownership of the transferor's beneficial interest in
such personal property.

Sec. 23. Where, in an action for partition of a condominium project or for the dissolution of
condominium corporation on the ground that the project or a material part thereof has been
condemned or expropriated, the Court finds that the conditions provided for in this Act or in
the declaration of restrictions have not been met, the Court may decree a reorganization of the
project, declaring which portion or portions of the project shall continue as a condominium
project, the owners thereof, and the respective rights of said remaining owners and the just
compensation, if any, that a condominium owner may be entitled to due to deprivation of his
property. Upon receipt of a copy of the decree, the Register of Deeds shall enter and annotate
the same on the pertinent certificate of title.

Sec. 24. Any deed, declaration or plan for a condominium project shall be liberally
construed to facilitate the operation of the project, and its provisions shall be presumed to be
independent and severable.

Sec. 25. Whenever real property has been divided into condominiums, each condominium
separately owned shall be separately assessed, for purposes of real property taxation and other
tax purposes to the owners thereof and the tax on each such condominium shall constitute a
lien solely thereon.

Sec. 26. All Acts or parts of Acts in conflict or inconsistent with this Act are hereby
amended insofar as condominium and its incidents are concerned.

Sec. 27. This Act shall take effect upon its approval.
- BUT implied or tacit consent is not enough to make the other co-owners liable
Article 491. None of the co-owners shall, without the consent of the others, for the expenses of the construction of the house
make alterations in the thing owned in common, even though benefits for all - To recover share of the expenses, the express consent of the others would be
would result therefrom. However, if the withholding of the consent by one or needed.
more of the co-owners is clearly prejudicial to the common interest, the courts - Express consent  proved by the one who made the alteration if he desires
may afford adequate relief. (397a) proportionate reimbursement

ALTERATIONS REPLACEMENT
- Whether or not common benefits would result - Not considered as alteration
ALTERATION DEFINED ALTERATION IS ILLEGAL

- Change which is - Made without the express or implied consent of the other co-owners (un
 More or less permanent verdadero despojo) = the true dispossession
 Changes the use of the thing
 Prejudices the condition of the thing or its enjoyment by others EFFECTS OF ILLEGAL ALTERATION
 Alteration is an act of ownership
(1)
Co-owner responsible may lose what he has spent
 May be material or metaphysical (change in use)
(2)
Demolition can be compelled
Examples: (3)
He would be liable for losses and damages
(4)
BUT whatever benefits the co-ownership derives will belong to it
(1) Sale, donation, mortgage of the whole property (5)
In case a house is constructed on common lot, all the co-owners will be
(2) Sale, donation or mortgage of a part of property but with definite entitled to a proportionate share of the rent
bounderies. Sale (x) void, but it is subject to the result of the subsequent  Wrong to give all to the person who made alteration and just let her pay
partition rent on the land
(3) Voluntary easement- a right to cross or otherwise use someone else's land
for a specified purpose
(4) Lease of property if recorded, or lease for moe than 1 year
(5) Construction of house and lot owned in common
(6) Any other act of strict dominion or ownership
(7) Impliedly contracts of long duration

Doctrines

- Cancel of ideal share –approval, concurrence or consent of other co-owners is


not essential Article 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.
Alteration  requires UNANIMITY on the part of all co-owners
Unless: there is judicial order to the contrary There shall be no majority unless the resolution is approved by the co-owners
UNANIMOUS CONSENT who represent the controlling interest in the object of the co-ownership.

- May be express or implied 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 2. Encumbrance or disposition is made since this would be an
may deem proper, including the appointment of an administrator. alteration
3. When an abusive or inefficient administrator is not replaced
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 Article 493. Each co-owner shall have the full ownership of his part and of the
the part owned in common. (398) fruits and benefits pertaining thereto, and he may therefore alienate, assign or
mortgage it, and even substitute another person in its enjoyment, except when
ADMINISTRATION AND BETTER ENJOYMENT personal rights are involved. But the effect of the alienation or the mortgage,
- Obviously this article concerns administration and better enjoyment with respect to the co-owners, shall be limited to the portion which may be
allotted to him in the division upon the termination of the co-ownership. (399)
ACTS OF ADMINISTRATION OR MANAGEMENT
RIGHT WITH RESPECT TO THE IDEAL OR PROPORTIONATE SHARES
(1) Do not involve alteration
- This article does not deal with the right to the whole property
(2) May be renewed from time to time
- Only the right with respect to the ideal or metaphysical share of each co-owner
(3) Have transitory effects, that is do not bind the co-ownershop for a long
time in the future DOCTRINES
(4) Do not give rise to a real right over the thing owned in common
(5) Those which even if called an alteration does not affect the substance or  An heir may alienate, assign or mortgage it even substitute another person
nature of thing in its enjoyment
(6) Those for common benefit of all the co-owners and not only one or the  Except : personal rights are involved.
same of them  Effect of alienation with respect to the co-owners shall be limited to the
portion which may be allotted to him in the division upon the termination
Example: of co-ownership
- Lease of one year or less RULES REGARDING THE IDEAL SHARE
- Acts of management
(A) Each co-owner has FULL OWNERSHIP –of his part and of his share of the
LIMITATION OF RIGHT OF FINANCIAL MAJORITY fruits and benefits
- There should first be a notice to the minority so they can be heard (B) He may Alienate, Mortgage or Assign (AMA) his ideal share <not one with
- The majority would be justified in proceeding ONLY WHEN the urgency of bounderies>
the case and the difficulty of meeting with them render impracticable the giving
of such notice (C) He may substitute another person in its enjoyment ; except : personal rights are
- MINORITY MAY APPEAL to the court involved
- When there is no real majority (Art 492)
- Resolution is seriously prejudicial to the rights of an individual co- (D) He may exempt himself from necessary expenses and taxes by renouncing part
owner (Art 492) of his interest in the co-ownership
- Majority refuses to correct abuse of administration or
maladministration Doctrines:
- Minority is made the victim of fraud
 Co-owner may validly sell his undivided share of property owned in
- When alteration (instead of mere act of administration is agreed upon
common.
 Example of acts seriously prejudicial
 If there has been no express partition yet, but the co-owner who sells,
1. Loans are made without sufficient security
points out to the buyers the bounderies of the part he was selling and the
other co-owners makes no objection  there is in effect already  There being co-ownership, lone seller could not be allowed to sell all,
PARTIAL PARTITION, and sale of the definite portion can no longer be hence the sale is valid only with respect to the 1/22 share.
assailed  Lone Seller can be sued not because he is a co-owner but because he acted
 Redemption of share of a co-owner cannot be effected if there has already as if he were the exclusive owner
been a partition of property formerly owned in common (SO THIS IS  When there is an innocent purchaser for value, without knowledge of
THE EFFECT IF THERE WAS ALREADY A PARTITION) existence of co-ownership, no action of annulment of sale would prosper.
He cannot be blamed for he had right to rely on registration records. The
UNAUTHORIZED SALE OF THE ENTIRE PROPERTY only remedy left would be to demand indemnification from the party
responsible for the prejudice.
- Sale is valid only insofar as his share is concerned ;
 Construction of the house with conjugal funds did not convert 1/13 of the
- UNLESS the other co-owners consent to the sale
common lot into conjugal property. It is basic principle in co-ownership
that no individual co-owner can claim title to any definite portion of the
land or thing owned in common until the partition thereof. Prior to that
PARTICIPATION IN THE PARTITION INCASE OF THE ALIENATION OF A time, all that the co-owner has is an ideal or abstract proportionate share in
CO-OWNER’S SHARE the entire thing owned in common.
 While the co-owner has the right to freely sell and dispose of his
- When co-owner sells his share to a stranger, it is the stranger who should
undivided interest, he has no right to sell a divided part, by metes and
participate and not the original co-owner
bounds of the real estate owned in common
- Vendor ceased to have interest in the co-ownership
 Co-owner may not convey a physical portion of the land owned in
 EXCEPTION :
common.
 If thereby, there would be a change in the use of the common
property Article 494. No co-owner shall be obliged to remain in the co-ownership. Each
Example: co-owner may demand at any time the partition of the thing owned in common,
Mais, Vills and Zeke are owners of 1st, 2nd and 3rd floors of the insofar as his share is concerned.
house used as a residence.
Zeke cannot sell it to Aleezah who desires to use 3rd floor as a Nevertheless, an agreement to keep the thing undivided for a certain period of
Casino without the consent of the other persons consent. time, not exceeding ten years, shall be valid. This term may be extended by a
WHY? –because the interest of Mais and Vills will be new agreement.
prejudiced. They would have to live in a house where gamblers
A donor or testator may prohibit partition for a period which shall not exceed
would have to pass through their floors/make noise when they
twenty years.
win games etc.
Neither shall there be any partition when it is prohibited by law.
PERSONAL RIGHTS IN THE REAL RIGHTS OF CO-OWNERSHIP
No prescription shall run in favor of a co-owner or co-heir against his co-
- Although co-ownership is a real right, personal rights MAY BE involved as
owners or co-heirs so long as he expressly or impliedly recognizes the co-
when the house is occupied by different owners as common dwelling.
ownership. (400a)
- Example: If Gelo, Vills and Mais lives in a studio type apartment, Gelo cannot
sell his share to Sodain Hosain . With such sale, the right to privacy of Vills REASON FOR ALLOWING PARTITION, AS A RULE AT ANY TIME
and Mais would be prejudiced.
- Law as much as possible discourages co-ownership
DOCTRINES - Hence, no co-owner as a rule, is obliged to remain in co-ownership
- Each co-owner may demand at any time the partition of the thing owned in 1. Testator may provide in his will that the property he is disposing will not
common insofar as his shares are concerned be partitioned for 20 years.
- Laches, prescription and estoppel cannot be invoked against co-owner who has 2. Doctrine of estoppel applies if a party assents to such partition
not been sleeping on his rights as long as co-ownership continues to be 3. Heirs may nevertheless partition property should any grounds of
recognized by the co-owners dissolution of partnership exist
Grounds for dissolution
OBJECT OF PARTITION
1. Without violating the agreement: 4. Loss
1. real properties or a) . Termination of the a) . Specific thing promised as
2. personal properties definite term or specific contribution is lost or perished
- if thing cannot be physically divided, then its value may be partitioned undertaking before delivery
b) Express will of any partner b) Loss of a specific thing
WHEN CO-OWNER MAY NOT SUCCESSFULLY DEMAND A PARTITION in good faith, when there is contributed before or after
no definite term and no delivery, if only the use of such
specified undertaking is contributed
1. if by agreement (for a period not exceeding 10 years, partition is
c) . Express will of all 5. Death of any of the partners
prohibited) partners (except those who
 term may be extended only by a new agreement (but only after the have assigned their 6. Insolvency of any partner or of the
expiration of the original period) interests or suffered them partnership
2. Partition is prohibited by donor or testator : period not exceeding 20 years to be charged for their
separate debts) either 7. Civil interdiction of any partner 8. By
3. Partition is prohibited by law (CPG, except in certain instances) before or after the decree of court under Art. 1831, NCC
4. Physical partition would render the property unserviceable termination of any a) a partner has been declared
 In this case, the property may be allotted to one of the co-owners who specified term or particular insane or of unsound mind
shall indemnify the others or it will be sold and the proceeds will be undertaking b) a partner becomes in any other
d) Expulsion of any partner way incapable of performing his
distributed
in good faith of a member part of the partnership contract
5. Legal nature of common property does not allow partition (ex: party c) a partner has been guilty of such
walls) conduct as tends to affect
prejudicially the carrying on of
PROHIBITION OF PARTITION BECAUSE OF AN AGREEMENT the business
d) a partner wilfully or persistently
1. Period must not extend more than 10 years commits a breach of the
2. If it extends 10 years, stipulation is valid only in so far as the 1st 10 years partnership agreement
e) the business of the partnership
is concerned
can only be carried on at a loss
3. There can be extention, but only after the original period has expired f) other circumstances render a
4. First extention, there can be another, and so on indefinitely as long as dissolution equitable
each= 10 years  where parties stipulate a definite period exceeding the maximum allowed
- Perpetual prohibition void: against public policy. by law, said stipulation shall be void only as to the period beyond such
 Agreement : subdivide into small lots then divide proceeds accordingly – maximum
VALID. The precise purpose is to eventually put an end in the co-
ownership after the parcels has been sold. It was a partnership to dispose PRESCRIPTION IN FAVOR OF CO-OWNER AGAINST THE OTHER CO-
the lots OWNERS

RULE IN THE CASE OF SUCCESSION OR INHERITANCE - GR: one co-owner cannot acquire the whole property as against the other co-
owners
 That is why other co-owners are allowed to demand partition at any time
- If however certain requirements are complied with, co-owner can become the CAUSE Extrajudicial (or conventional
exclusive owner of the other’s shares by prescription Judicial (court approval)
CONDITION PERMANENCE Provisional
1. He must make known to the other co-owners that he is definitely Temporary
repudiating the co-ownership and that he is claiming to complete SUBJECT MATTER Real Property
ownership over the entire property Personal Property
2. Evidence of repudiation and knowledge on the part of the others must FORMS AND Judicial Decree
be clear and convincing SOLEMNITIES Duly registered in the registry of property
3. Other requirements of prescription –continuous, open, public, Public Instrument
peaceful, adverse possession within the time required by law Private instrument
4. Period of prescription will run only from such repudiation Oral partition

Cardova et a v. Cardova et al  constructive trust : (x) prescription


LAW THAT GOVERNS PARTITION
Better rule : Constructive or implied trust : can prescribe; as distinguished from
 Civil Code
express trust which cannot prescribe as long as the relationship between trustor or
trustee is recognized  Suppletorily, Rules of Court : Rule 69 on Partition

 Mere receiving of rents or profits, payment of land taxes and the


construction of fences and buildings will not be considered sufficient - Rule 74, Sec 1 of ROC concurrence of the following conditions for a
proof of exclusive or adverse possession because a co-owner as such partition to be valid
usually does these. 1. Decedent left no will
 Mere actual possession by one will not give rise to inference that 2. Decedent left no indebtedness, if there is left, all had been paid
possession was adverse 3. Heirs and liquidators are all of age, or if they are minors, the latter are
represented by judicial guardian or legal representatives
Article 495. Notwithstanding the provisions of the preceding article, the co-
4. Partition was made by means of public instrument or affidavit
owners cannot demand a physical division of the thing owned in common, when
- Co-owners have right to voluntarily terminate their existing co-ownership over
to do so would render it unserviceable for the use for which it is intended. But
the property through an agreement subdividing the land among themselves
the co-ownership may be terminated in accordance with article 498. (401a)
WHAT A PERSON DESIRING JUDICIAL PARTITION OF REAL ESTATE
PARTITION OF AN ESSENTIALLY INDIVISIBLE OBJECT
MUST DO
- Example automobile
- Set forth in his complaint
- Physical partition is not practicable, the co-owership may end under Art 498 -
(1) Nature and extent of his title
Whenever the thing is essentially indivisible and the co-owners cannot agree
(2) Adequate description of the real estate
that it be allotted to one of them who shall indemnify the others, it shall be sold
(3) He must join as defendants all other persons interested in the property
and its proceeds distributed.
 unless all other co-owners and interested persons are made defendants,
Article 496. Partition may be made by agreement between the parties or by action will not prosper
judicial proceedings. Partition shall be governed by the Rules of Court insofar  If co-owner is dead, his administrator or heirs may bring the action
as they are consistent with this Code. (402)  Insufficiency of description may be cured even during trial –NOT
AFTERWARDS
CLASSIFICATION OF THE VARIOUS KINDS OF PARTITION
 An action for partition cannot be considered as one for the partition of EFFECTIVITY OF PARTITION MADE BY THE COMMISSIONERS
property owned in common even though it is so entitled and the prayer of
the complaint is to this effect, if any party to the suit denies the pro- - Upon approval of court
indiviso or undivided character of te estate. Action becomes one for - Court is allowed to approve, amend or disprove the report
recovery of property - New commissioners may be appointed

WHAT COURTS MUST DO IF IT FINDS THAT THE PLAINTIFF HAS THE RULE AS TO WHO PASYS THE COSTS
RIGHT TO DEMAND PARTITION
- Parties shall pay the costs, including compensation to the commissioners
(1) Order the partition of real estate among all parties in interest
STATEMENT OF THE PROPER BOUNDERIES
(2) Parties may if they are able to agree make partition among themselves by
property instruments of conveyance –court shall confirm the partition - Judgment shall state boundaries of actual partition
(3) Such partition + order of court confirming the same shall be recorded in
the registry of deeds of the place which they are situated NECESSITY OF DELIVERY
(4) Final order decreeing partition and accouting may be appealed by any
- Delivery is NECESSARY AND INDISPENSABLE INCIDENT to carry into
aggrieved party.
effect the purpose of partition
- Law does not require that partition be effected through a public instrument
- Each co-owner may be placed in possession of lot adjudicated to him even if
(private instrument/ even orally)
courts decision on partition be silent in this regard
- While partition in private document is valid and binding between parties, it is
not sufficient by itself to convey title or real right to the land. RULE ON PARTITION SALES
WHAT COURTS MUST DO IF PARTIES FAIL TO AGREE ON PARTITION If sale is made by the sherriff for cash Sheriff may sell the property anew on
and the bidder to whom property is the same day without readvertising
(1) Appoint not more than 3 competent and disinterested persons as
adjudicated fails to make payment
commissioners to make partition
Partition sales become valid and only upon confirmation by court
(2) Command them to set off the plaintiff and each party in interest such binding
part and proprortion of the property as the court may direct IF the property is resold before Original purchaser released from
- Decision directing partition is not final but interlocutory ; leaves something to confirmation of the first sale , and further liability upon his purchase
be done in TC for complete disposition of the case resale is duly confirmed by court
- Selection depends upon court’s discretion

FACTORS CONSIDERED IN MAKING THE PARTITION EFFECT OF EXTRAJUDICIAL PARTITION THAT IS LATER ON APPROVED
BY COURT OF COMPETENT JURISDICTION
a) Examine the real estate
b) Most advantageous and most equitable with due regard to the - Future judicial determination : precluded
improvements, situation, and quality of what is to be divided
NOVATION OF PARTITION
RULE IF PHYSICAL PARTITION IS PREJUDICIAL
- May be novated as long as interested parties consent thereto
- Land will be given to one co-owner who should reimburse the rest unless one
asks that public sale be made EFFECT OF LACHES
- Request of sale is allowed to forestall collusion between assignee and the
commissioners ::: value of land - Presumption that party has either abandoned or declined to assert his rights
MAY PARTITION BE ADJUDGED IN A LAND REGISTRATION CASE Article 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
- Yes shall be sold and its proceeds distributed. (404)
- Decision of land registration case which is a proceeding in rem, is conclusive
upon the land and is binding on the entire world. Said decision is even a PARTITION OF AN ESSENTIALLY INDIVISIBLE
judgment in personam.
- Example automobile
PRESCRIPTIVE PERIOD IF PARTITION IS VOID - Termination of co-ownership here is made not physically but by law.
- “legal or juridical dissolution”
- Action to declare nullity of a VOID extrajudicial partition does not prescribe

Article 497. The creditors or assignees of the co-owners may take part in the PROCEDURE FOR LEGAL PARTITION: real/personal property
division of the thing owned in common and object to its being effected without
their concurrence. But they cannot impugn any partition already executed, (1) Give the whole to one co-owner who will now be required to indemnify
unless there has been fraud, or in case it was made notwithstanding a formal the rest
opposition presented to prevent it, without prejudice to the right of the debtor (2) If this is not agreed upon, there must be a sale
or assignor to maintain its validity. (403)\
APPLICABLE ALSO TO OBJECTS ESSENTIALLY DIVISIBLE
RIGHTS OF CREDITORS WITH RESPECT TO PARTITION
- Like land
- Not allowed to impugn partition UNLESS - When it cannot be divided without prejudice to the interest of the parties
- They were defrauded or they have previously presented the formal opposition
to prevent it
Article 499. The partition of a thing owned in common shall not prejudice third
CREDITORS persons, who shall retain the rights of mortgage, servitude or any other real
rights belonging to them before the division was made. Personal rights
- Whether preferred or ordinary. pertaining to third persons against the co-ownership shall also remain in force,
- Creditors during existence of co-ownership notwithstanding the partition. (405)
- NOT BEFORE OR AFTER
PROTECTION OF THIRD PERSON’S RIGHTS
PARTICIPATION OF ASSIGNEES
- Both real and personal rights are protected
Whole share is sold and has delivered Assignee acquires real right over the
the same property and should participate THIRD PERSONS
Only part of the share or even if he Both co-owner and assignee allowed to
- All those who did not have any way participate or intervene in the partition
sold the entire share has not yet participate
delivered the same judgment obtained by one co-owner against another co-owner who adversely
NOTICE TO CREDITORS AND ASSIGNEES affect a purchaser of the latter’s portion
- If such purchase has not been made prior to the judgment and without notice of
- Notice must be given to them although law does not expressly so provide the controversy
- Law grants them the right to participate in the partition
- If they do not appear, they will not be afterwards allowed to impugn partition INTEREST OF ALL PERSONS MUST BE CONSIDERED

- Reason and justice must prevail


Article 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) Article 1620. A co-owner of a thing may exercise the right of redemption in case
the shares of all the other co-owners or of any of them, are sold to a third
person. If the price of the alienation is grossly excessive, the redemptioner shall
pay only a reasonable one.
EFFECT OF PARTITION
Should two or more co-owners desire to exercise the right of redemption, they
(1) Mutual accounting for the benefits received may only do so in proportion to the share they may respectively have in the
(2) Mutual reimbursement for the expenses thing owned in common. (1522a)
(3) Indemnity for damages in case of negligence and fraud
(4) Reciprocal warranty for
 Defects of title (eviction)
 Quality (hidden defects)

(5) Each former co-owner is deemed to have had exclusive possession if the Article 1623. The right of legal pre-emption or redemption shall not be
part allotted to him for the entire period during co-possession lasted exercised except within thirty days from the notice in writing by the prospective
vendor, or by the vendor, as the case may be. The deed of sale shall not be
(6) Partition confers upon each, the exclusive title over his respective share recorded in the Registry of Property, unless accompanied by an affidavit of the
vendor that he has given written notice thereof to all possible redemptioners.
- it is not enough that co-owner agrees to subdivide the property.
- they must have a subdivision plan drawn in accordance with which they take
actual and exclusive possession of their respective portions in the plan.
Mechanics of actual partition should follow the procedure laid down in Rule 69 The right of redemption of co-owners excludes that of adjoining owners.
ROC (1524a)

Article 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)
Article 1648. Every lease of real estate may be recorded in the Registry of
RECIPROCAL WARRANTY Property. Unless a lease is recorded, it shall not be binding upon third persons.
(1549a)
- Co-owners must bear loss because of mutual warranty against eviction

HOW CO-OWNERSHIP IS EXTINGUISHED


Article 1878. Special powers of attorney are necessary in the following cases:
(1) Judicial partition
(2) Extrajudicial partition (8) To lease any real property to another person for more than one year;
(3) When by prescription one co-owner has acquired the whole property by
adverse possession against all the others and repudiating unequivocally the
co-ownership of the other
(4) When stranger acquires by prescription the things owned in common
(5) Merger in one co-owner
(6) Loss or destruction
(7) Expropriation

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