CO-OWNERSHIP

CO-OWNERSHIP

• Co-ownership

a) plurality of subjects – many owners

b) unity of material (indivision) of object of ownership

c) recognition of ideal shares

• Causes/Sources:
1. law

2. contracts

3. succession

4. fortuitous event/chance – commixtion

5. occupancy – 2 persons catch a wild animal

• Distinguished from partnership

a) partnership created only by agreement; co-ownership has many sources

b) purpose of partnership is to obtain profit; co-ownership is collective enjoyment of a thing

c) in partnership there is juridical personality distinct from individuals, none in co-ownership

d) partnership can be created for more than 10 years, not in co-ownership

e) partners cannot transfer rights w/o consent of other co-partners, not co-ownership

f) partnership extinguished when partner dies, not in co-ownership

g) distribution of profits in partnerships may be stipulated, this is not flexible in co-ownership but depends on ideal share/interest

• Rights of co-owners

1. Right to benefits proportional to respective interest; stipulation to contrary is void

2. Right to use thing co-owned

a. for purpose for which it is intended

b. without prejudice to interest of ownership

c. without preventing other co-owners from making use thereof

3. Right to change purpose of co-ownership by agreement

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

5. Right to compel co-owners to contribute to necessary expenses for preservation of thing and taxes

6. 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

7. 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

8. Right to full ownership of his part and fruits

9. Right to alienate, assign or mortgage own part; except personal rights like right to use and habitation

10. Right to ask for partition anytime

11. Right of pre-emption

12. Right of redemption

13. Right to be adjudicated thing (subject to right of others to be indemnified)

14. 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

• Duties/Liabilities

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; controlling interest; 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
a. he has repudiated through unequivocal acts

b. such act of repudiation is made known to other co-owners

c. 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. Every co-owner liable for defects of title and quality of portion assigned to each of the co-owner


• 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