DEFINITION:

The state where an undivided thing belongs to two or more persons. The right of dominion which two or more persons have in a spiritual (or ideal) part of a thing which is not physically divided

Sanchez-Roman: it is the right of common dominion which two or more persons have in a spiritual part of a thing—not materially or physically divided

Does not have a separate personality. A co-ownership cannot sue in court.

Each co-owner holds an ideal portion or pro indiviso share, definite in amount, but not physically or concretely identified.

E.g. if a land is co-owned in equal portions by A, B, and C, each of them holds 1/3 of the land, but they cannot claim a specific portion of the land. Thus, A cannot claim the western portion, or B cannot claim the northern portion, and so on. The actual division will only happen at partition.

As to his ideal portion, each co-owner shall have full control and ownership. He may therefore alienate, assign or mortgage it, and even substitute another person in its enjoyment, except when personal rights are involved. (Art 493)

REQUISITES:1. Plurality of owners2. Object must be an undivided thing or right; and3. Each co-owner’s right must be limited only to his

ideal or abstract share of the physical whole

There are ideal shares defined but not physically identifiedGeneral Rule:

1. Proportionality: the share of the co-owners, in the benefits as well as in the charges, shall be proportional to their respective interest

a. Mandatoryb. Any stipulation to the contrary shall be void

Art. 484. There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons.

In default of contracts, or of special provisions, co-ownership shall be governed by the provisions of this Title.

Art. 485. The share of the 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. (393a)

2. Presumption: portions belonging to the co-owners in the co-ownership are presumed to be equally—unless contrary is proven

Rights of Co-owners1. Right to share in the benefits as well as the charges

a. Proportional to their interestsb. Stipulation to the contrary is voidc. Portion belonging to the co-owners is presumed

to be equal2. Right to use the thing owned in common (Art. 486)

a. That he use the thing in accordance with the purpose for which it is intended

i. Agreementii. Use to which it is ordinarily adaptediii. Use to which it is previously devoted

! Mere tolerance on the part of co-owners cannot legalize the change in the use of a thing from that intended

b. That he uses it in such a way as to not injure the interest of the co-ownership

c. That he uses it without preventing the other co-owners from making use thereof according to their own rights

! Remedies available to owners in general may be used by co-owners

Each co-owner has absolute control over his ideal share- Every co-owner has absolute ownership of his

undivided interest in the co-owned property- They are free to alienate, assign or mortgage their

interest except as to purely personal rights- Limitation

o He cannot alienate the shares of his co-owners

Right of each co-owner—before the partition of a land or thing held in common, no individual or co-owner can claim title to any definite portion thereof

- All that he has is an ideal or abstract quota or proportionate share in the entire land or thing

Art. 486. Each co-owner may use the thing owned in common, provided he does so 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.

Art. 493. Each co-owner shall have the full ownership of his part and of the fruits and benefits pertaining thereto, and he may therefore alienate, assign or mortgage it, and even substitute another person in its enjoyment, except when personal rights are involved. But the effect of the alienation or the mortgage, with respect to the co-owners, shall be limited to the portion which may be alloted to him in the division upon the termination of the co-ownership. (399)

Art. 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.

SPECIAL RIGHTS OF CO-OWNERS3. Right to bring an action for ejectment

a. This covers all kinds of actions for the recovery of possession

b. A co-owner may bring such an action, without the necessity of joining all the other co-owners as co-plaintiffs

i. Suit is deemed instituted for the benefit of all

c. A co-owner may bring an action to exercise and protect the rights of all

i. A favorable decision shall benefit allii. But an adverse decision cannot

prejudice their rightsiii. Consent of a co-owner would make

decision binding upon himd. Co-owner vs. Co-owner?

i. The only effect of the action will be to obtain recognition of the co-ownership

ii. Defendant cannot be excluded because as co-owner, he has a right to possess

4. Right to compel other co-owners to contribute to the expenses of the preservation and to the taxes

a. Only for NECESSARY expensesi. Useful expenses not coveredii. Co-ownership is not for profit—NEEDS

CONSENTb. Any one of the other co-owners may exempt

himself by renouncing so much of his undivided interest as may be equivalent to his share of the expenses and taxes

i. Renunciation must be expressly madeii. The value of the property at the time

of the renunciation will be the basis of portion to be renounced

iii. A co-owner cannot be compelled to renounce

! Exception: if waiver is prejudicial to co-ownershipRules on Renunciation

Art. 487. Any one of the co-owners may bring an action in ejectment. (n)

Art. 488. 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. Any one of the latter may exempt himself from this obligation by renouncing so much of his undivided interest as may be equivalent to his share of the expenses and taxes. No such waiver shall be made if it is prejudicial to the co-ownership. (395a)

- If renunciation is in favor of creditor who has not yet paid, said creditor must give consent: DACION EN PAGO

- If renunciation is made in favor of a co-owner: a novation (substitution of debtor) would result: consent of creditor and co-owner is requiredc. No waiver if it is prejudicial to the co-ownership

5. Right to repaira. Repairs for preservation may be made at will of

one of the co-owners, but he must, if practicable, first notify his co-owners of the necessity for such repairs

i. Lack of notice gives rise to the presumption that repair is not necessary

b. A case where one co-owner can bind the other (other case is 487)

NUMBER OF CO-OWNERS WHO MUST CONSENTa. Repairs, ejectment action: 1b. Alterations or acts of OWNERSHIP: ALLc. All others (useful improvements, luxurious

embellishments, etc): FINANCIAL MAJORITY

6. Right to oppose alterationsa. General Rule: Consent of all others is needed

to make alterations, even if alteration benefits all

b. Exception: If the withholding of the consent is clearly prejudicial to the common interest, the courts may afford relief

c. Reason for the rule: alteration is an act of ownership, not mere administration

ALTERATIONS:An alteration is a change

a. Which is more or less permanentb. Which changes the use of the thing; andc. Which prejudices the condition of the thing or

its enjoyment by others7. Right to full ownership of his part and of the fruits and

benefits pertaining thereto (493)8. Right to partition (494)

a. Each may demand, at any time, the partition of the thing, insofar as his share is concerned

b. An agreement to keep the thing undivided for a certain period NOT exceeding 10 years is valid

c. Term may be extended by a new agreement

Art. 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

Art. 491. None of the co-owners shall, without the consent of the others, make alterations in the thing owned in common, even though benefits for all would result therefrom. However, if the withholding of the consent by one or more of the co-owners is clearly prejudicial to the common interest, the courts may afford adequate relief. (397a)

Art. 494. No co-owner shall be obliged to remain in the co-ownership. Each co-owner may demand at any time the partition of the thing owned in common, insofar as his share is concerned.Nevertheless, an agreement to keep the thing undivided for a certain period of time, not exceeding ten years, shall be valid. This term may be extended by a new agreement.

A donor or testator may prohibit partition for a period which shall not exceed twenty years.

Neither shall there be any partition when it is prohibited by law.No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-ownership.(400a)

d. Donor or testator may prohibit partition, period not to exceed 20 years

e. No partition may be made if prohibited by law

f. Right does not prescribe

A. ACTS OF ADMINISTRATION

1. Majority Rule. For the administration and better enjoyment of the thing owned in common, the resolutions of the majority of the co-owners shall be binding. (Art. 492)

2. Determination of Majority. There shall be no majority unless the resolution is approved by the co-owners who represent the controlling interest in the object of the co-ownership. (Art. 492)

- Note that the law considers majority in interest, not in number3. Judicial intervention. The court, at the instance of an interested

party, shall order such measures as it may deem proper, including the appointment of an administrator, in the following cases:

a. If there be no majority, orb. If the resolution of the majority is seriously prejudicial to those

interested in the property owned in common (Art. 492)4. Whenever a part of the thing belongs exclusively to one of the

co-owners, and the remainder is owned in common, the foregoing rules shall apply only to the part owned in common. (Art. 492)

B. IMPROVEMENTS OR EMBELLISHMENTS: Expenses to improve or embellish the thing shall be decided upon by a majority as determined in Article 492. (Art. 489)

II. PARTITION

A. RIGHT TO PARTITION1. General Rule. No co-owner shall be onliged to remain in the co-

ownership. Each co-owner may demand at any time the partition of the thing owned in common, insofar as his share is concerned. (Art. 494)

The purpose of partition is to separate, divide, and assign a thing held in common among those to whom it belongs. (see Art. 1079) Every act intended to put an end to indivision is deemed to be a partition (See Art. 1082)

2. Limitationsa. An agreement to keep the thing undivided for a certain period

of time, not exceeding 10 years, shall be valid. (Art. 494)- This term may be extended by a new agreement (Art. 494)

Each extension should likewise not exceed 10 years.b. A donor or testator may prohibit partition for a period which

shall not exceed 20 years.c. Neither shall there be any partition when it is prohibited by law.

(Art. 494)

Art. 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.

There shall be no majority unless the resolution is approved by the co-owners who represent the controlling interest in the object of the co-ownership.

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 may deem proper, including the appointment of an administrator.

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 the part owned in common.

Art. 490. Whenever the different stories of a house belong to different 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 the subject, the following rules shall be observed:

(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 the story belonging to each;

(2) Each owner shall bear the cost of maintaining the floor of his 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;

(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 ground floor; the stairs from the first to the second story

3. Imprescriptibility. No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs so long as he expressly or impliedly recognizes the co-ownership. (Art. 494)

a. Generally, a co-owner’s possession is considered as not adverse to his co-owners. The co-owner in possession is said to act as a trustee for his co-owners.

- Mere silent possession by a co-owner; his receipt of rents, fruits or profits from the property; his erection of buildings and fences and the planting of trees thereon; and the payment of land taxes cannot per se serve as proofs of exclusive ownership.

- Stronger evidence is required to prove adverse possession against a co-owner than that against strangers.

b. For prescription to run in favor of a co-owner, it must be shown that his possession was adverse to the other co-owners, which requires the following elements:

i. He has performed unequivocal acts of repudiation amounting to an ouster of the other co-owners;ii. Such positive acts of repudiation have been made known to the other co-owners; andiii. The evidence thereon must be clear and convincing.

B. MODES OF PARTITION. Partition may be made by an agreement between the parties or by judicial proceedings.

1. The agreement may be oral or written.2. Judicial partition shall be governed by the Rules of Court insofar as they are consistent with the Civil

Code (Art. 496)a. All co-owners are indispensible parties which must be impleaded in the partition case.b. A case for judicial partition has two stages under Rule 69.i. First Stage: Determination of whether co-ownership exists and whether partition is proper. If the court

orders partition, the parties ay agree on how to divide the party, which agreement will be confirmed by the court.

ii. Second Stage: If the parties cannot agree, the court will decide how the property is to be divided, with the assistance of the commissioners. The court may also order an accounting of the rents or fruits.

C. MANNER OF PARTITION1. If the property owned in common is divisible, a co-owner may demand that it be physically divided and

his portion thereof may be given to him.2. If the property owned in common is essentially indivisible or if the physical division of the thing would

render it unserviceable for the use for which it is intended, the owners cannot demand a physical division. (Art. 495) Their options are the following:

a. The co-owners can agree that the property be allotted to one of them who shall indemnify the others. (Art. 498)

b. If the co-owners cannot agree, the property shall be sold and its proceeds distributed among them. (Art. 498)

D. RIGHTS OF THIRD PARTIES1. The partition of a thing owned in common shall not prejudice third persons, who shall retain the rights

of mortgage, servitude, or any other real rights belonging to them before the division was made. (Art. 499)

2. Personal rights pertaining to third persons against the co-ownership shall also remain in force, notwithstanding the partition. (Art. 499)

3. The creditors or assignees of the co-owners may take part in the division of the thing owned in common and object to its being effected without their concurrence (Art. 497)

- But they cannot impugn any partition already executed, unless – i. There has been fraud, orii. In case it was made notwithstanding a formal opposition presented to prevent it, without prejudice to

the right of the debtor or assignor to maintain its validity. (Art. 497)

E. INCIDENTS OR PARTITION.1. Upon partition, there shall be a mutual accounting for benefits received and reimbursements for

expenses made. (Art. 500)2. Likewise, each co-owner shall pay for damages caused by reason of his negligence or fraud. (Art. 500)

3. 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. (Art. 501)