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d. Use/ Possession

TOPICS UNDER THE SYLLABUS E. Co-ownership

1. Elements 2. How Created

3. Rights of Co-owners

a. Ownership over Whole Property

b. Sale/ Alienation

i. Of Individual Interest ii. Of Entire Property

iii. Redemption by Other Co-owners

iv. Prescription

c. Benefits/ Fruits/ Interest/

Income

d. Use/ Possession

e. Management/ Administration 4. Partition

a. Demandable Anytime b. Prohibition for Indivision 5. Obligations of Co-owners 6. Termination

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E. CO-OWNERSHIP

CO-OWNERSHIP —is a form of ownership which exists whenever an undivided thing or right belongs to different persons.

1. ELEMENTS

1. Plurality of subjects – many owners 2. Object of ownership must be undivided 3. Recognition of ideal shares; no one is an

owner of a specific portion of the property until it is partitioned.

2. HOW CREATED 1. Law

2. Contracts

3.3.

Succession

4. Fortuitous event/chance (i.e., commixtion) 5. Occupancy (i.e.,2 persons catch a wild

animal) 6. Donation

Kinds of Co-ownership:

1. Ordinary – right of partition exists

2. Compulsory – no right partition exists (party wall)

3. Legal – created by law

4. Contractual – created by contract

5. Universal – over universal things (co-heirs) 6. Singular or Particular – over particular or

specific thing

7. Incidental – exists independently of the will of the parties

personality No legal

personality Has legal or juridical personality

Source Created by

contract or

Term Agreement for

it to exist for the testator or donee of the

Effect of death Not dissolved by death or Substitution Can dispose of Cannot

his share partner in his place without consent of others Profits Must always

depend on

DISTINGUISHED FROM JOINT TENANCY BASIS

CO-OWNERSHIP JOINT TENANCY Shares Involves a

physical whole.

of shares Each co-owner may dispose of may not dispose of his own share without the consent of all the rest, because he really has no ideal share

Effect of

death share goes to

his own heirs share goes by accretion to the other joint-tenants by virtue of their

survivorship or jus accrecendi

Effect of

disability If a co-owner is a minor, this does not benefit the others for the purpose of

If one joint-tenant is under legal disability (like minority), this benefits the other against whom prescription will not run

3. RIGHTS OF CO-OWNERS

a. Ownership over Whole Property b. Sale/ Alienation

i. Of Individual Interest

o Right to alienate, assign or

i. Right to be adjudicated thing (subject to right of others to be indemnified) ii. Right to share in proceeds of sale of

thing if thing is indivisible and they cannot agree that it be allotted to one of them

NOTE:

 To be exercised w/in 30days from written notice of sale of undivided share of another co-owner to a stranger

 Redemption of the whole property by a co-owner does not vest in him sole ownership over said property. Redemption within the period prescribed by law by a co-owner will inure to the benefit of all co-owners. Hence, it will not put an end to existing co-ownership. Mariano v. CA, [222 SCRA 736 (1993)]

iv. Prescription

General Rule - A co-owner cannot acquire the whole property as against the other co-owners by acquisitive prescription.

Exception - When there is valid repudiation – prescription shall start from such repudiation Exception to the Exception - In constructive

trusts, prescription does not run

i. A co-owner cannot sell the property without the other co-owners’ consent, otherwise, the selling co-owner’s share shall be the only one valid. Paulmitan v.

CA, [215 SCRA 866 (1992)]

ii. While the husband is the recognized administrator of the conjugal property under the Civil Code, there are instances when the wife may assume administrative powers or ask for the separation of property. Where the husband is absent and incapable of administering the conjugal property, the wife must be expressly authorized by the husband or seek judicial authority to assume powers of administration. Thus, any transaction entered by the wife without the court or

the husband’s authority is unenforceable.

Being an unenforceable contract, the 2nd Contract is susceptible to ratification. The husband continued remitting payments for the satisfaction of the obligation under the questioned contract. These acts constitute ratification of the contract.

Fabrigas v. San Francisco, [G.R. No.

152346, Nov. 25, 2005]

c. Benefits/ Fruits/ Interest/ Income o Right to benefits proportional to

respective interest

i. Stipulation to contrary is void o Right to full ownership of his part and

fruits

d. Use/ Possession

o Right to use thing co-owned

i. For purpose for which it is intended

ii. Without prejudice to interest of ownership

iii. Without preventing other co-owners from making use thereof

e. Management/ Administration

o Right to change purpose of co-ownership by agreement

o Right to bring action in ejectment in behalf of other co-owner

o Right to compel co-owners to contribute to necessary expenses for preservation of thing and taxes o Right to exempt himself from

obligation of paying necessary expenses and taxes by renouncing his share in the pro indiviso interest;

but can’t be made if prejudicial to co-ownership

o Right to make repairs for preservation of things; can be made at will of one co-owner; receive reimbursement therefrom; notice of necessity of such repairs must be given to co-owners, if practicable o Right to ask for partition anytime o Right of pre-emption

4. PARTITION

a. Demandable Anytime

General Rule: No co-owner shall be obliged to remain in the co-ownership. Each co-owner may at any time demand the partition of the thing

owned in common, insofar as his share is concerned.

b. Prohibition for Indivision

Exception - A co-owner may not successfully demand a partition:

1. If by agreement (for a period not exceeding 10 years, renewable) partition is prohibited

2. When partition is prohibited by a donor or testator (for a period not exceeding 20 years) – from whom the property came 3. When partition is prohibited by law 4. When a physical partition would

render the property unserviceable, but in this case, the property may be allotted to one of the co-owners, who shall indemnify the others, or it will be sold, and the proceeds distributed

5. When the legal nature of the common property does not allow partition REQUISITES OF REPUDIATION:

1. Unequivocal acts of repudiation of the co-ownership amounting to an ouster of the other co-owners

2. Positive acts of repudiation have been made Known

3. Evidence is clear and conclusive

4. Open, continuous, exclusive, notorious possession

5. OBLIGATIONS OF CO-OWNERS

1. Share in charges proportional to respective interest; stipulation to contrary is void

2. Pay necessary expenses and taxes – may be exercised by only one co-owner

3. Pay useful and luxurious expenses – if determined by majority

4. Duty to obtain consent of all if thing is to be altered even if beneficial; resort to court if non-consent is manifestly prejudicial

5. Duty to obtain consent of majority with regards to administration and better enjoyment of the thing; majority means majority in the interest not in the number of co-owners; court intervention if prejudicial – appointment of administrator

6. No prescription to run in favor co-owner as long as he recognizes the co-ownership;

requisites for acquisition through prescription i. He has repudiated through

unequivocal acts

ii. Such act of repudiation is made known to other co-owners

iii. Evidence must be clear and convincing

7. Co-owners cannot ask for physical division if it would render thing unserviceable; but can terminate co-ownership

8. After partition, duty to render mutual accounting of benefits and reimbursements for expenses

9. Under Art. 493 of the NCC, each co-owner has full ownership of his part and of the fruits and benefits pertaining thereto, and he may alienate, assign or mortgage the portion which may be allotted to him upon the termination of the co-ownership. It appears that while there is a single certificate of title, the three lots are distinguishable from each other.

RIGHTS OF 3RD PARTIES

1. Creditors of assignees may take part in division and object if being effected without their concurrence, but cannot impugn unless there is fraud or made notwithstanding their formal opposition 2. Non-intervenors – retain rights of

mortgage and servitude and other real rights and personal rights belonging to them before partition was made

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TOPICS UNDER THE SYLLABUS