CO-OWNERSHIP

Definition: the right of common dominion

which two or more persons have in a
spiritual part of a thing which is not
physically divided.
Concept: co-ownership exists where the
ownership of a thing physically undivided
pertains to more than one person.

Characteristics:
a) plurality of subjects (the co-owners)
b) there is a single object which is not
materially divided
c) there is no mutual representation by
the co-owners
d) it exist for the common enjoyment of
the co-owners
e) it has no distinct legal personality
f) it is governed first of all by the
contract of the parties; otherwise, by
special legal provisions, and in default
of such provisions, by the provisions of
Title III on co-ownership

Sources:
1. Law
2. Contract
3. Chance
4. Occupation
5. Succession
6. Testamentary disposition or donation
inter vivos

Co-ownership Partnership
1. Can be created
without the
formalities of a
contract
1. Can be created
only by contract,
express or implied
2. Has no juridical or
legal personality
2. Has juridical
personality distinct
from the partners
3. Purpose is
collective enjoyment
of the thing
3. Purpose is to
obtain profits
4. Co-owner can
dispose of his shares
without the consent
of the others with
the
transferee
automatically
becoming a co-owner
4. A partner, unless
authorized cannot
dispose of his share
and substitute
another as a partner
in his place
5. There is no mutual
representation
5. A partner can
generally bind the
partnership
6. Distribution of
profits must be
proportional to the
respective interests
of the co-owners
6. Distribution of
profits is subject to
the stipulation of the
parties
7. A co-ownership is
not dissolved by the
death or incapacity
7. Death or
incapacity dissolves
the partnership
of a co-owner
8. no public
instrument needed
even if real property
is the object of the
co-ownership
8. May be made in
any form except
when real property is
contributed
9. An agreement to
keep the thing
undivided for a
period of more than
10 years is void
9. There may be
agreement as to a
definite term without
limit set by law

Rules:
1. Rights of each co-owner as to the thing
owned in common: USBRAP-LDP
a) To use the thing owned in common
Limitations:
i) use according to the purpose for
which it was intended
ii) interest of the co-ownership must
not be prejudiced
iii) other co-owners must not be
prevented from using it according
to their own rights
b) To share in the benefits and charges in
proportion to the interest of each.
NOTE: Any stipulation to the contrary is
void.
c) To the benefits of prescription:
prescription by one co-owner benefits
all.
d) Repairs and taxes: to compel the others
to share in the expenses of
preservation even if incurred without
prior notice.
NOTE: The co-owner being compelled may
exempt himself from the payment of taxes
and expenses by renouncing his share
equivalent to such taxes and expenses.
The value of the property at the time of
the renunciation will be the basis of the
portion to be renounced.
e) Alterations: to oppose alterations
made without the consent of all, even
if beneficial.
NOTES:
Alteration is an act by virtue of which a
co-owner changes the thing from the
state in which the others believe it
should remain, or withdraws it from the
use to which they desire it to be
intended.
Expenses to improve or embellish
are decided by the majority
f) To protest against seriously prejudicial
decisions of the majority
g) Legal redemption: to be exercised
within 30 days from written notice of
sale of an undivided share of another
co-owner to a stranger
h) To defend the co-ownerships interest
in court
i) To demand partition at any time
Partition is the division between 2
or more persons of real or personal
property which they own in common so
that each may enjoy and possess his
sole estate to the exclusion of and
without interference from others
GENERAL RULE: Partition is
demandable by any of the co-owners as
a matter of right at any time.
EXCEPTIONS:
1) When there is a stipulation against
it; but not to exceed 10 years.
2) When the condition of indivision is
imposed by the donor or testator;
but not to exceed 20 years.
3) When the legal nature of the
community prevents partition.
4) When partition would render the
thing unserviceable.
5) When partition is prohibited by law
6) When another co-owner has
possessed the property as exclusive
owner for a period sufficient to
acquire it by prescription.

2. The following questions are governed by
the majority of interests:
a) Management
Minority may appeal to the court
against the majoritys decision if the
same is seriously prejudicial.
b) Enjoyment
c) Improvement or embellishment
3. Rights as to the ideal share of each co-
owner:
a) Each has full ownership of his part and of
his share of the fruits and benefits
b) Right to substitute another person its
enjoyment, EXCEPT when personal rights
are involved
c) Right to alienate, dispose or encumber
d) Right to renounce part of his interest to
reimburse necessary expenses incurred by
another co-owner
e) Transactions entered into by each co-
owner only affect his ideal share.

EXTINGUISHMENT OF CO-OWNERSHIP
(CALSTEP)
1. consolidation or merger in one co-owner
2. acquisitive prescription in favor of a third
person or a co-owner who repudiates the
co-ownership
3. loss or destruction of property co-owned
4. sale of property co-owned
5. termination of period agreed upon by the
co-owners
6. expropriation
7. judicial or extra-judicial partition

CONDOMINIUM ACT (R.A. NO. 4726)
CONDOMINIUM
an interest in real property consisting of a
separate interest in a unit in a residential,
industrial or commercial building and an
undivided interest in common, directly or
indirectly, in the land on which it is located
and in other common areas of the building.
Any transfer or conveyance of a unit or an
apartment, office or store or other space
therein, shall include transfer or
conveyance of the undivided interest in the
common areas 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 held by the
owners of separate units as co-owners
thereof, no condominium unit therein shall
be conveyed or transferred to persons
other than Filipino citizens or corporations
at least 60% of the capital stock of which
belong to Filipino citizens, except in cases
of hereditary succession.

GENERAL RULE: Common areas shall remain
undivided, and there shall be no judicial
partition thereof:
EXCEPTIONS:
1. When the project has not been rebuilt or
repaired substantially to its state prior to
its damage or destruction 3 years after
damage or destruction which rendered a
material part thereof unfit for use;
2. When damage or destruction has rendered
or more of the units untenantable and
that the condominium owners holding more
than 30% interest in the common areas are
opposed to restoration of the projects;
3. When the project has been in existence for
more than 50 years, that it is obsolete and
uneconomic, and the condominium owners
holding in aggregate more than 50%
interest in the common areas are opposed
to restoration, remodeling or modernizing;
4. When the project or a material part
thereof has been condemned or
expropriated and the project is no longer
viable, or that the condominium owners
holding in aggregate more than 70%
interest in the common areas are opposed
to the continuation of the condominium
regime;
5. When conditions for partition by sale set
forth in the declaration of restrictions duly
registered have been met.