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June 1, 2022

HOW IS CO-OWNERSHIP TERMINATED?

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After reading “How is co-ownership terminated?”, read also “Existence of Co-ownership”.

  • There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons.

  • 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.

  • Co-heirs or co-owners cannot acquire by acquisitive prescription the share of the other co-heirs or co-owners absent a clear repudiation of the co-ownership.

What is co-ownership?

Co-ownership is defined as the right of common dominion which two or more persons have in a spiritual part of a thing, not materially or physically divided. It is also defined as the manifestation of the private right of ownership which instead of being exercised by the owner in an exclusive manner over the things subject to it, it is exercised by two or more owners and the undivided thing or right to which it refers is one and the same.

The law says:

            Article 484 of the New Civil Code provides that:

“Art. 484. There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons.

xxx.”

 

How can co-ownership be terminated?

            Among the grounds for the extinguishment of a co-ownership are:

  1. Consolidation or merger into one co-owner;
  2. Acquisitive prescription in favor of a third person or a co-owner who repudiates the co-ownership;
  3. Loss or destruction of the property co-owned;
  4. Partition;
  5. Expropriation;
  6. Termination of the period agreed upon by the co-owners; and
  7. Sale of the property co-owned. (Timoteo Aquino, Reviewer on Civil Law, p. 215, 2018 ed.)

 

The law says:

            Article 494 of the New Civil Code states that:

“Art. 494. 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.

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.”

 

May a co-owner or co-heir acquire the share of the other co-owners by acquisitive prescription?

                 As a general rule, the co-owners, as well as the co-heirs cannot acquire the share of the other co-owners by acquisitive prescription, since the possession of a co-owner can be likened to that of a trustee.

 

Jurisprudence says:

            In the case of Heirs of Juanita Padilla v. Magdua (G.R. No. 176858, 15 September 2010), the Supreme Court held that:

“Co-heirs or co-owners cannot acquire by acquisitive prescription the share of the other co-heirs or co-owners absent a clear repudiation of the co-ownership, as expressed in Article 494 of the Civil Code which states:

Art. 494. x x x No prescription shall run in favor of a co-owner or co-heir against his co-owners or co-heirs as long as he expressly or impliedly recognizes the co-ownership.

Since possession of co-owners is like that of a trustee, in order that a co-owner’s possession may be deemed adverse to the cestui que trust or other co-owners, the following requisites must concur: (1) that he has performed unequivocal acts of repudiation amounting to an ouster of the cestui que trust or other co-owners, (2) that such positive acts of repudiation have been made known to the cestui que trust or other co-owners, and (3) that the evidence thereon must be clear and convincing.”

 

                 In the case of Antipolo Ining v. Vega (G.R. No. 174727, 12 August 2013), the Supreme Court held that:

“Time and again, it has been held that “a co-owner cannot acquire by prescription the share of the other co-owners, absent any clear repudiation of the co-ownership. In order that the title may prescribe in favor of a co-owner, the following requisites must concur: (1) the co-owner has performed unequivocal acts of repudiation amounting to an ouster of the other co-owners; (2) such positive acts of repudiation have been made known to the other co-owners; and (3) the evidence thereof is clear and convincing.”


Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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