Rights of Each Co-owner over the Thing or Property Owned in Common

Rights of Each Co-owner over the Thing or Property Owned in Common

1. To use the thing according to the purpose intended (Jus Utendi)

2. To share in the benefits in proportion to his interest provided the charges are borne by each in the same proportion

3. To bring an action in ejectment

4. To compel the other co-owners to contribute to expense for preservation of the property owned in common and to the payment of taxes

5. To oppose any act of Alteration

6. To protest against acts of majority which are seriously prejudicial to the minority

7. To exercise legal redemption 8. To ask for partition

Right use the thing according to the purpose intended (Jus Utendi)—

Article 486, Civil Code. 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.

1. Limitations on co-owner’s right:

a. Use must be to the purpose for which it is intended.

 As stipulated in the agreement

 In the absence of agreement, the purpose for which it was ordinarily adapted according to its nature.

 In the absence of the above, the use for which it was previously or formerly devoted.

b. Use must be without prejudice to the interest of the co-ownership.

158

PROPERTY

c. Use must not prevent the other co-owners from making use of the property according to their own rights.

2. Changing the purpose of the thing—

The purpose of the thing may be changed by an agreement, express or implied, provided that the following will be observed:

 It does not cause injury or prejudice to the interest of the co-ownership

 Any act against the collective interest is an act against ownership.

 A co-owner cannot devote the community property to his exclusive use

 It does not prevent the use by other co-owners

Right to share in the benefits in proportion to his interest provided the charges are borne by each in the same proportion—

Article 485, Civil Code. 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 owners in the co-ownership shall be presumed equal, unless the contrary is proved.

Right to bring an action in ejectment—

Article 487, Civil Code. Any one of the co-owners may bring an action in ejectment.

1. Action in Ejectment covers all kinds of action for recovery of possession (reivindicatoria, publiciana, forcible entry, unlawful detainer) 2. There is no need to include all the

co-owners as co-plaintiffs because the suit is deemed to be instituted for the benefit of all 3. But the action will not prosper if the action is

brought for the benefit of the plaintiff alone and not for the co-ownership

4. Article 487 of the Civil Code, which provides simply that “any one of the co-owners may bring an action in ejectment,” is a categorical and an unqualified authority in favor of owner to evict the petitioners from the portions of lot. The rule is a co-owner may bring an action to exercise and protect the rights of all. When the action is brought by one co-owner for the benefit of all, a favorable decision will benefit them; but an adverse decision cannot prejudice their rights. (Resuena v. CA)

Right to compel the other co-owners to contribute to expense for preservation of the

property owned in common and to the payment of taxes—

Article 488, Civil Code. 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.

1. This provision includes only necessary expenses and taxes, and NOT those for mere luxury, embellishment or pleasure a. Expenses for preservation: those which,

if not made, would endanger the existence of the thing or reduce its value or productivity

b. Not used for the improvement of the thing (what is intended is the preservation of the thing, not gaining profit from it)

2. Renunciation

a. Other co-owners have the option not to contribute by renouncing so much of his undivided interest as may be equivalent to his share of the necessary expenses and taxes

 Must be express; thus, failure to pay is not a renunciation

 Requires the consent of other co-owners because it is a case of dacion en pago (cessation of rights) involving expenses and taxes already paid (J.B.L. Reyes)

b. A co-owner cannot renounce his share if it will be prejudicial to another co-owner 3. Procedure: Repairs for preservation

Article 489, Civil Code. 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.

a. Notify other co-owners, as far as practicable

b. However, a co-owner can advance expenses for preservation of the property even without prior consent of others. He is entitled to reimbursement for the amount spent for necessary expenses.

CIVIL LAW REVIEWER Chapter V. CO-OWNERSHIP

159

PROPERTY

4. Procedure: Embellishment or improvements

a. Notify co-owners of improvements and embellishments to be made

 If no notification is made, the co-owner who advanced the expenses still has the right to be reimbursed if he proves the necessity of such repairs and the reasonableness of the expense

 EXCEPTION: If the others can prove that had he notified them, they could have hired the services of another who would charge less than the people with whom the one who advanced contracted or that they know of a store that sells the needed material at a cheaper price

o Co-owner only entitled to be reimbursed for the amount that should have been spent had he notified the others, and difference shall be borne by him alone

b. Decision by majority must be followed Right to oppose any act of Alteration—

Article 491, Civil Code. 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.

1. Alteration: a change which more or less permanently changes the use of a thing and adversely affecting the condition of the thing or its enjoyment by the others.

2. It involves:

a. Change of the thing from the state or essence in which the others believe it should remain, or

b. Withdrawal of the thing from the use to which they wish to be intended, or c. Any other transformation which

prejudices the condition or substance of the thing or its enjoyment by the others 3. Rule: Any act of alteration requires

UNANIMOUS CONSENT OF ALL CO-WORKERS

a. BUT when there is unreasonable withholding of consent: the co-owner may go to court to seek adequate relief.

b. Note: consent may be express or tacit c. Reason for the rule: alteration is an act

of ownership, not of mere

administration.

4. Alteration v. Administration

Alteration Administration More permanent result

and relate to the substance or form of

the thing

Refers to the enjoyment of the thing

and is of transitory character Nature: if the thing

does not require any modification for its

enjoyment, any modification that is

made will be considered an

alteration

When the thing in its nature requires changes, modifications

can be considered as acts of simple administration Consent: Unanimous

consent of all

Consent: mere majority is sufficient a. Alteration without consent of all is illegal

 The one who did the alteration will lose whatever he spent in case he is made to demolish the work he has done (no right to reimbursement)

 Damages to the non-consenting co-owner can also be granted by the court

b. Note: This is subject to ratification – if co-owners decide to contribute to the expenses by reimbursing the co-owner who made the alteration (effect: benefit of alteration will inure to the

co-ownership)

Right to protest against acts of majority which are seriously prejudicial to the minority—

Article 492(3), Civil Code. 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.

1. Acts of administration

a. Acts of management that do not involve alteration of the property

b. Acts which are temporary in character so much so that they do not bind the property for a long time

c. Acts that do not create real rights over the common property

2. Rule:

If there is a disagreement or conflict of opinions by and among the co-owners on the matter of administration and better enjoyment of the common property, the resolution of the co-owners

160

PROPERTY

representing the controlling interest (not majority in number) shall be binding upon all co-owners.

3. Who can be the administrator?

He or she may or may not be a co-owner, PROVIDED that the co-owners delegated him or her.

4. What can an administrator do?

a. PROVIDED there is a unanimous consent of all co-owners, an administrator may compromise on, donate, cede, alienate, mortgage, or encumber the common property

b. If the amount of individual contribution is undetermined, the law presumes that they all contributed proportionately (Lavadia v. Cosme)

Right to exercise legal redemption—

Article 1620, Civil Code. 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.

Should two or more co-owners desire to exercise the right of redemption, they may only do so in proportion to the share they may respectively have in the thing owned in common.

Article 1623, Civil Code. The right of legal pre-emption or redpre-emption shall not be exercised except within thirty days from the notice in writing by the prospective vendor, or by the vendor, as the case may be. The deed of sale shall not be recorded in the Registry of Property, unless accompanied by an affidavit of the vendor that he has given written notice thereof to all possible redemptioners.

The right of redemption of co-owners excludes that of adjoining owners.

1. Redemption: Act of reclaiming possession of something by payment of a specific price 2. The 30-day redemption period starts from

the date of written notification of the sale made by the co-owner.

Without such written notice, the 30-day period does not start to run

3. Exceptions:

a. Estoppel by laches (inaction)

If there is oral notification and several years have passed (implied waiver) and there is reliance on the non-action of co-owners

b. Estoppel by silence

When there is duty to speak

4. Note: The written notification must come from the prospective vendor

a. The vendor is in a better position to know things involving the property and the sale

b. Redemption of the property by a co-owner does not vest him sole ownership over said property.

Redemption will inure to the benefit of all co-owners. Redemption is not a mode of termination of relationship. (Mariano v.

CA)

5. Other cases where right of redemption is given

a. Rural land

Article 1621, Civil Code. The owners of adjoining lands shall also have the right of redemption when a piece of rural land, the area of which does not exceed one hectare, is alienated, unless the grantee does not own any rural land.

This right is not applicable to adjacent lands which are separated by brooks, drains, ravines, roads and other apparent servitudes for the benefit of other estates.

If two or more adjoining owners desire to exercise the right of redemption at the same time, the owner of the adjoining land of smaller area shall be preferred; and should both lands have the same area, the one who first requested the redemption.

b. Urban land

 Article 1622, Civil Code. Whenever a piece of urban land which is so small and so situated that a major portion thereof cannot be used for any practical purpose within a reasonable time, having been bought merely for speculation, is about to be re-sold, the owner of any adjoining land has a right of pre-emption at a reasonable price.

If the re-sale has been perfected, the owner of the adjoining land shall have a right of redemption, also at a reasonable price.

 When two or more owners of adjoining lands wish to exercise the right of pre-emption or redpre-emption, the owner whose intended use of the land in question appears best justified shall be preferred.

CIVIL LAW REVIEWER Chapter V. CO-OWNERSHIP

161

PROPERTY

Right to ask for partition—

Article 494, Civil Code. No co-owner shall be obliged to remain in the 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.

1. Partition: segregation or division of a property in common to those to whom it belongs

2. Rule: Right to demand partition does not prescribe

3. Exceptions to the rule:

a. When indivision within 10 years is stipulated by the co-owners

b. When co-ownership is imposed as a condition in a donation or in a last will

and testament by the

transferor/donor/testator

c. When from the nature of the property in common, it cannot be divided (i.e. party wall)

d. When partition is generally prohibited by law (i.e. ACP, party wall)

e. When the partition would render the thing unserviceable or the thing held in common is essentially indivisible—

If the thing cannot be physically partitioned, they may sell the thing and the co-owners may divide the proceeds)

f. When acquisitive prescription has set in favor of a stranger to con-ownership or in favor of a co-owner

VII. Implication of Co-owner’s Right over

In document UP Solid Civil Law Reviewer (Page 171-175)