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This article was originally published on June 1, 2022 and has been updated to reflect recent legal developments.
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Article 484 of the Civil Code of the Philippines states that there is co-ownership whenever the ownership of an undivided thing or right belongs to different persons
May a thing or right be owned by two or more persons?
The law says: Yes.
Article 484 of the Civil Code of the Philippines states that there is co-ownership whenever the ownership of an undivided thing or right belongs to different persons.
The Supreme Court defined Co-ownership in the case of Vagilidad v. Vagilidad, Jr., G.R. No. 161136, November 16, 2006, as the right of common dominion which two or more persons have in a spiritual part of a thing, not materially or physically divided. Before the partition of the property held in common, no individual or co-owner can claim title to any definite portion thereof. All that the co-owner has is an ideal or abstract quota or proportionate share in the entire property.
Use of the thing owned in common
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. (Article 486, Civil Code)
Preservation of things owned in common
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. (Article 488, Civil Code)
Repairs for Preservation
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. (Article 489, Civil Code)
Alteration of thing owned in common
In 491 of the Civil Code, it states that none of the co-owners shall, without the consent of the others, make alterations in the thing owned in common even if such alteration would benefit all. 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..
Sale by co-owners of their parts
In the case of Raul V. Arambulo and Teresita A. Dela Cruz vs. Genaro Nolasco and Jeremy Spencer Nolasco, G.R. No 189420, March 26, 2014, the Supreme Court affirmed the decision of the Court of Appeals in respecting the right of a co-owner to withhold his consent to the sale of the property owned in common.
Accordingly, the Court held that each one of the co-owners with full ownership of their parts can sell their fully owned part. The sale by the co-owners of their parts shall not affect the full ownership by the other co-owners of the part that belongs to them. Their part which petitioners will sell shall be that which may be apportioned to them in the division upon the termination of the co-ownership. With the full ownership of the respondents remaining unaffected by petitioners’ sale of their parts, the nature of the property, as co-owned, likewise stays. In lieu of the petitioners, their vendees shall be co-owners with the respondents.
Administration and better enjoyment
In case of administration and better enjoyment of the thing owned in common, the resolution 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. (Article 492, Civil Code)
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