Alburo Law Offices

MAY A CO-OWNER BE OBLIGED TO REMAIN IN THE CO-OWNERSHIP?

 

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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:

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.


A common question in co-ownership is whether a co-owner can be forced to stay in a co-ownership. The answer is clear under Article 494 of the Civil Code of the Philippines, 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. 

 

However, while a co-owner may freely demand partition, the law also provides for certain limitations:


1.) When the Co-Owners Themselves Agree to Keep the Property Undivided

Article 494 also provides that 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.


2.) When Partition is Prohibited by Donor or Testator

Still in Article 494, a donor or testator may prohibit partition for a period which shall not exceed twenty years. 


3.) When Partition is Prohibited by Law

Neither shall there be any partition when it is prohibited by law. (Article 494)


4.) When the Thing is Essentially Indivisible

Under Article 495, notwithstanding preceding provisions, the co-owners cannot demand a physical division of the thing owned in common, when to do so would render it unserviceable for the use for which it is intended. But the co-ownership may be terminated in accordance with Article 498.

 

Form of Partition

According to Article 496, partition may be made by agreement between the parties or by judicial proceedings. Partition shall be governed by the Rules of Court insofar as they are consistent with the Civil Code.

 

In Spouses Benny and Normita Rol v. Isabel Urdas Racho, G.R. No. 246096, January 13, 2021, the Supreme Court clarified that if the alienation precedes the partition, the co-owner cannot sell a definite portion of the land without consent from his or her co-owners. He or she could only sell the undivided interest of the co-owned property.

 

The Court explained:

 

“To illustrate, if a ten-hectare property is owned equally by ten co­-owners, the undivided interest of a co-owner is one hectareNo 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.o-ownership is dissolved and, in effect, each of the former co-owners is free to exercise autonomously the rights attached to his or her ownership over the definite portion of the land. It is crucial that the co-owners agree to which portion of the land goes to whom.”

 

In conclusion, a co-owner cannot be forced to remain in a co-ownership, but the exercise of this right is subject to certain limitations provided by law.


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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

All rights reserved.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.

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