EXISTENCE OF CO-OWNERSHIP

Aside from this article about co-ownership, read: WHAT IS OWNERSHIP?

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

• Each co-owner may use the thing owned in common

• Repairs for preservation may be made at the will of one of the co-owners

May a thing or right be owned by two or more persons?

The law says:

Yes.

This is a case where the ownership over an undivided thing or right belongs to different persons. For example is a situation where siblings inherit an undivided property from their parents. Prior to partition or division of the said property, the siblings are all co-owners of said property.

Each sibling, as a co-owner, may use the property owned in common, provided he does so in accordance with the purpose for which it is intended and in such a manner as not to injure the interest of the co-ownership or prevent the other co-owners from using it according to their rights.

If the thing owned in common needs some preservation, each co-owner has the right to compel the other co-owners to contribute to the expenses of preservation of the thing or right owned in common and to contribute to the payment of taxes.

The repairs for preservation of the thing or right owned in common may be made at the will of only one of the co-owners. However, the co-owner intending to make some repairs for the preservation must, if practicable, notify his co-owners of the necessity for such repairs.

What if a co-owner desires to make some alteration on the thing owned in common?

The law says:

None of the co-owners shall, without the consent of the others, make alterations in the thing owned in common even if such alteration would benefit all. 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.

Philippine jurisprudence has settled that alterations include any act of strict dominion and any encumbrance or disposition has been held to be an act of alteration. Alienation of the thing by sale of the property is an act of strict dominion.

But, in the case of Raul V. Arambulo and Teresita A. Dela Cruz vs. Genaro Nolasco and Jeremy Spencer Nolasco (G.R. No 189420, March 26, 2014), the Supreme Court affirmed the decision of the Court of Appeals in respecting the right of a co-owner to withhold his consent to the sale of the property owned in common.

Accordingly, each co-owner shall have the full ownership of his part and of the fruits and benefits pertaining to his part and said co-owner may therefore dispose the same in any manner except when personal rights are involved. But the effect of the alienation or disposition with respect to the co-owners, shall be limited to the portion which may be allotted to him in the division upon the termination of the co-ownership. Thus, a sale of the entire property by one co-owner without the consent of the other co-owners is not null and void.

In case of administration and better enjoyment of the thing owned in common, the resolution of the majority of the co-owners shall be binding. It shall be understood that “majority” represents the controlling interest in the object controlling interest in the object of the co-ownership.

If there is no majority or if the resolution of the majority is seriously prejudicial to those interested in the property owned in common, a co-owner may seek the aid of the court.

What are the rights of a co-owner? May you oblige your co-owner to remain in the co-ownership? Related articles on these matters will be posted in a few days.

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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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