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CIV - Property > Co-Ownership > Flashcards

Co-Ownership Flashcards

1
Q

What is Co-ownership?

A

The form of ownership when the ownership of an undivided thing or right belongs to different persons. [Art. 484, CC]

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2
Q

What are the requisites of Co-Ownership?

A

a. Plurality of owners;
b. Object must be an undivided thing or right; and
c. Each co-owner’s right must be limited only to his ideal or abstract share of the physical whole.

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3
Q

What governs Co-Ownership?

A

a. Contracts;
b. Special laws; and
c. The CC

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4
Q

What are the characteristics of a Co-Ownership?

A

a. There are 2 or more co-owners.
b. There is a single object which is not materially or physically divided and his ideal share of the whole.
c. There is no mutual representation by the coowners.
d. It exists for the common enjoyment of the coowners.
e. It has no distinct legal personality.
f. It is governed first of all by the contract of the parties; otherwise, by special legal provisions, and in default of such provisions, by the provisions of Title III on Co-Ownership.

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5
Q

What is the only limitation as to the rights of the Co-owners?

A

Each co-owner of realty held pro indiviso exercises his rights over the whole property and may use and enjoy the same with no other limitation than that he shall not injure the interests of his co-owners. [Pardell v. Bartolome, G.R. No. L-4656 (1912)]

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6
Q

What is the difference bet. a Co-Ownership and a Partnership as to creation?

A

Co-Ownership:
Can be created without formalities of a contract

Partnership:
Can be created only by contract, express or implied

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7
Q

What is the difference bet. a Co-Ownership and a Partnership as to Juridical Personality?

A

Co-Ownership:
Has no juridical or legal personality

Partnership:
Has juridical
personality distinct from partners

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8
Q

What is the difference bet. a Co-Ownership and a Partnership as to Purpose?

A

CO:
Purpose is collective enjoyment of the thing

P:
Purpose is to obtain profits

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9
Q

What is the difference bet. a Co-Ownership and a Partnership as to Disposition of Shares?

A

CO:
Consent of other coowners not needed; transferee
automatically becomes co-owner

P:
Partner needs to be
authorized; he cannot substitute another as a partner in his place

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10
Q

What is the difference bet. a Co-Ownership and a Partnership as to Existence of Mutual Agency?

A

CO:
There is no mutual representation

P:
A partner can generally bind the partnership

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11
Q

What is the difference bet. a Co-Ownership and a Partnership as to Death of Incapacity?

A

CO:
Does not result in dissolution

P:
Results in dissolution

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12
Q

What is the difference bet. a Co-Ownership and a Partnership as to Formal Requisites?

A

CO:
No public instrument is needed even if the
object of the coownership is a real property

P:
May be made in any
form except when real property is contributed

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13
Q

What is the difference bet. a Co-Ownership and a Partnership as to Agreeement on the Period?

A

CO:
An agreement to keep
the thing undivided for a period of more than 10 years is void

P:
There may be agreement as to a definite term without limit set by law

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14
Q

What are the sources of Co-Ownership?

A

a. law
b. contract
c. intestate succession
d. testamentary disposition or donation inter vivos
e. by fortuitous event or by chance

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15
Q

Instances of Law being a source of Co-Ownership?

A
  1. Cohabitation: co-ownership between common law spouses [See Arts. 147, 148, 90, FC]
  2. Purchase creating implied trust [Art. 1452, CC] 3. Easement of party wall: co-ownership of partowners of a party wall [Art. 658, CC]
  3. Condominium Law: co-ownership of the common areas by holders of units [Sec. 6, RA 4726]
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16
Q

Instances of Contract being a source of Co-Ownership

A
  1. By Agreement of Two or More Persons [Art. 494, CC]
  2. By the creation of a Universal Partnership of all present property [Arts. 1778-1779, CC]
  3. By Association and Societies with Secret Articles [Art. 1775, CC]
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17
Q

Intestate Succession being a source of Co-Ownership?

A

Co-ownership between the heirs before partition of the estate [Art. 1078, CC]

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18
Q

Testamentary Disposition / Donation Inter Vivos as a source of Co-Ownership?

A

When a donation is made to several persons jointly, it is understood to be in equal shares, and there shall be no right of accretion among them, unless the donor has otherwise provided. [Art. 753, CC]

Exception: Donations to spouses jointly, right of accretion is presumed unless donor provides otherwise.

A donor or testator may prohibit partition for a period which shall not exceed 20 years.

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19
Q

What are instances where Fortuitous Event/Chance is a source of Co-Ownership?

A

Co-ownership between owners of 2 things that are mixed by chance or by will of the owners [Art. 472, CC]

Hidden Treasure [Art. 438, CC]

When the discovery is made on the property of another, or of the State or any of its subdivisions, and by chance, one-half shall be allowed to the finder.

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20
Q

What are instances where Occupancy ia a source of Co-Ownership?

A

Harvesting and Fishing: Co-ownership by two or more persons who have seized a res nullius thing

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21
Q

What are the Rights of Co-Ownership?

A

a. Right to Share in the Benefits as Well as Charges
b. Right to Use the Thing Owned In Common
c. Right to Bring an Action in Ejectment
d. Right to Compel other Co-Owners to Contribute to the Expenses of Preservation and to Taxes
e. Right to Reimbursement for Necessary Repairs
f. Right to Oppose Alterations
g. Right to Full Ownership of His Part and Fruits and Benefits Pertaining thereto
h. Right to Partition
i. Right to Redemption
j. Right to Participate in Administration of Property owned in common

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22
Q

What is the share of the Co-Owners?

A

The share of the co-owners shall be proportional to their respective interests. Any stipulation to the contrary is void. [Art. 485, par. 1, CC]

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23
Q

What is the presumtion on the share of Co-Owners?

A

Presumption of Equal Share

The portions belonging to the co-owners in the co-ownership shall be presumed equal, unless the contrary is proved. [Art. 485, par. 2, CC]

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24
Q

What are the limitations to the right of co-owners to use the thing owned in common?

A
  1. In accordance with the purpose for which the coownership is intended. – the purpose of the co-ownership may be changed by agreement, express or implied.
  2. In such a way as not to injure the interest of the co-ownership.
  3. In such a way as not to prevent the other coowners from using it according to their right.
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25
Q

What is the presumption when a co-owner bring an action in ejectment?

A

A co-owner may bring such an action without joining all the other co-owners as co-plaintiffs because the suit is presumed to have been filed to benefit his coowners. If the plaintiff/co-owner claims to be the sole owner, the action should be dismissed. [Adlawan vs. Adlawan, G.R. No. 161919, (2006)]

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26
Q

What contribution can a co–owner compel other to pay?

A

Each co-owner shall have a right to compel the other co-owners to contribute:

  1. To the necessary expenses (incurred for preservation of the thing or right)

If practicable, he must first notify his co-owners of the necessity for such repairs. [Art. 489, CC]

  1. To the taxes [Art. 488, CC]

Exception to paying necessary expenses and taxes: Coowner no longer has to pay if he renounces his undivided interest as equivalent to his share of expenses and taxes. [Art. 488, CC]

Exception to Exception: No waiver shall be made if prejudicial to co-ownership. [Art. 488, CC]

  1. To the useful expenses (expenses to improve or embellish the thing) [Arts. 546, 547, CC]

Not refundable unless they shall be decided upon by a majority. [Art. 489, CC]

As for the expenses for pure luxury or mere pleasure, these are not refundable for not serving purposes of preservation. [Art. 548, CC]

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27
Q

Is useful expenses in a co-ownership refundable?

A

NO.

Not refundable unless they shall be decided upon by a majority. [Art. 489, CC]

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28
Q

In, Co-ownership are expenses for pure luxury or mere pleasure refundable?

A

NO.

As for the expenses for pure luxury or mere pleasure, these are not refundable for not serving purposes of preservation. [Art. 548, CC]

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29
Q

What is the requirement notice for co-owners in expenses for preservation, maintenance, or repairs?

A

If practicable, the co-owner must first notify the co-owners of the necessity for the repairs. [Art. 489, CC]

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30
Q

When is notice to co-owners re necessary repairs not required?

A

If impracticable or where the repairs are very urgent and the other co-owners are in remote places and cannot be reached by an ordinary means of communication.

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31
Q

Does lack of notice even if practicable exempt other co-owners from contributing to necessary repairs?

A

NO.

Does not exempt other co-owners to contribute. The co-owner who advanced them has the burden of proving that they were properly incurred.

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32
Q

What is the general rule re Alterations in the Co-Owned thing?

A

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.

33
Q

What is the rationale for requiring consent of the other co-owner in alterations in the co-owned thing?

A

Alteration is an act of ownership.

34
Q

What is an Alteration?

A

Alteration – a change in the nature or use of a thing, it contemplates a PERMANENT CHANGE.

35
Q

What are examples of Alteration of a thing?

A
  1. Change of the thing from the state or essence in which the others believe it should remain
  2. Withdrawal of the thing from the use to which they wish it to be intended
  3. Any other transformation which prejudices the condition or substance of the thing or its enjoyment by the others. (Manresa)
36
Q

When is the consent of other co-owners not necessary in the alteration of the co-owned thing? (exception to the rule)

A

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.

37
Q

What is the right of the co-owner to full ownership of his part and of the fruits and benefits pertaining thereto?

A

He may therefore alienate, assign or mortgage his part, and even substitute another person in its enjoyment, except when personal rights are involved.

38
Q

What is the limitations on the co-owners right to ownership of his part?

A

When personal rights are involved

39
Q

Can a Co-Owner be obligated to remain in the co-ownership?

A

NO.

GENERAL PRINCIPLE: No co-owner is obligated to remain in co-ownership.

(partition)

40
Q

What is the general rule on the partition of the co-owned thing?

A

Each co-owner may demand at any time the partition of the thing owned in common, insofar as his share is concerned. [Art. 494 par.1, CC]

41
Q

What are the limitatios to the Right to Partition of Co-Owners?

A
  1. An agreement to keep the thing undivided for a certain period of time, not exceeding 10 years, shall be valid. [Art. 494, CC]
  2. A donor or testator may prohibit partition for a period which shall not exceed 20 years. [Art. 494, CC]
  3. Neither shall there be any partition when it is prohibited by law. [Art. 494, CC]
  4. When physical partition would render the thing unserviceable for the use for which it is intended.
    [Art. 495, CC] EXCEPTION: If it is indivisible (physical partition not possible), allot to one of the coowners who shall indemnify others or have it sold and divide the process from the sale. [Art. 498, CC]
  5. When another co-owner has possessed the property as exclusive owner and for a period sufficient to acquire it by prescription.

Note: 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 coownership. [Art. 494, CC]

42
Q

What elements must concur in order to show adverse possession of a co-owner (for prescription to run in favor of a co-owner)?

A
  1. He 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 thereon must be clear and convincing. [Salvador v. CA, supra]
  4. His possession is open, continuous, exclusive, and notorious.
43
Q

What is Legal Redemption?

A

Legal Redepmtion:
the right to be subrogated, upon the same terms and conditions stipulated in the contract, in the place of one who acquires a thing by purchase or dation in payment, or by any other transaction whereby ownership is transmitted by onerous title.

44
Q

When may a co-owner exercise the right of redemption?

A

A co-owner of a thing may exercise the right of redemption in case the shares of all the other coowners or of any of them are sold to third person. [Art. 1620, CC]

45
Q

When is there a majority in resolutions of co-owners?

A

There shall be no majority unless the resolution is approved by the co-owners who represent the controlling interest in the object of the co-ownership. [Art. 492 par. 2, CC)

46
Q

How is the Right to Participate in Administration of Property owned in common exercised?

A

Through resolutions of the majority of co-owners?

For the administration and better enjoyment of the thing owned in common, the resolutions of the majority of the co-owners shall be binding. [Art. 492 par. 1, CC)

47
Q

What are the exceptions to the rule “acts of administration only by majority” in co-ownership?

A
  1. If there be no majority, or
  2. If the resolution of the majority is seriously prejudicial to those interested in the property owned in common.
    – In which case, the court will intervene: The court, at the instance of an interested party, shall order such measures as it may deem proper, including the appointment of an administrator
48
Q

What are examples of acts ‘seriously prejudicial to those interested in the property owned in common’?

A
  1. Call for a substantial change of the thing
  2. Authorizing leases, loans, and other contracts without the necessary security, thereby exposing the property to serious danger
  3. Continued employment of an administrator who is guilty of fraud or negligence in his management (Manresa)
49
Q

How can a co-owner exempt himself from the payment of expenses of preservation?

A

By renouncing his undivided interest

A co-owner may exempt himself from the payment of expenses of preservation by renouncing his undivided interest in the co-ownership as may be equivalent to his share in of the necessary expenses and taxes. [Art. 488, CC]

50
Q

Is a waiver of renunciation of interest by a co-owner allowed?

A

NO.

Waiver of renunciation is not allowed if it is prejudicial to the co-ownership. [Art. 488, CC]

51
Q

What is required in repairs for preservation embellishments or improvements of the co-owned thing?

A

Requires consent of majority of coowners representing the controlling interest in the undivided thing. [Art. 489 and 492, CC]

52
Q

What consent is needed in Preservation of the CO thing?

A

May be made at will by any co-owner, but preferably notice is
given to others. [488 and 489, CC]

53
Q

What consent is needed in Alteration of the CO thing?

A

Consensus of all coowners [491, CC]

54
Q

What consent is needed in Lease for more than 1 year of the CO thing?

A

Consensus of all coowners (considered an act of alteration, see Tolentino)

55
Q

What consent is needed in Acts of Administration of the CO thing?

A

Majority of co-owners [Art. 492, CC]

56
Q

What consent is needed in Improvement/Embelisshing the Thing/ Useful expenses of the CO thing?

A

Majority of co-owners [Art. 489 and 492, CC]

57
Q

When does the Rules on Multi-Story House apply?

A

Applies when:

a. The different stories of a house belong to different owners;
b. The titles of ownership do not specify the terms under which they should contribute to the necessary expenses; and
c. There exists no agreement on the subject.

58
Q

What is the manner of contribution for:

Main and party walls,
the roof, and the other things used in common

A

All owners contribute in

proportion to the value of the story belonging to each

59
Q

What is the manner of contribution for:

Floor of the entrance, front door, common yard, and sanitary works common to all

A

All owners contribute pro rata or equally

60
Q

What is the manner of contribution for:

The floor of each coowner’s story

A

Each owner bears the

cost of maintaining the floor of his story

61
Q

What is the manner of contribution for:

Stairs

A

Contribution
Stairs from the first entrance to the first
story – pro rata sharing
of all owners except the owner of the ground floor

Stairs from the first to the second story - pro rata sharing of all owners except the owner of the ground floor and that of the
first story; and so on.

62
Q

When is there Termination / Extinguishment of the Co-Ownership?

A

a. Total destruction of the thing owned in common
b. Merger of All Interests in One Person
c. Partition
d. Sale of Property Co-Owned
e. Termination of Period Agreed upon in Coownership

63
Q

What is the exception to extinguisment of co-ownership due to total destruction of thing?

A

Building is destroyed. There is still co-ownership over the land [tolentino]

64
Q

When is there a merger of all interest of the co-ownership in one person?

A

This may take place by any of the causes which are sufficient to transmit title to an obligation, either by assignment, subrogation, and sale of inheritance.

65
Q

What is Acquisitive Prescription in termination of Co-ownership?

A

This is a mode of acquiring ownership by a possessor through the requisite lapse of time. It may be ordinary or extraordinary. [Art. 1117, CC]

Article 1117. Acquisitive prescription of dominion and other real rights may be ordinary or extraordinary.

Ordinary acquisitive prescription requires possession of things in good faith and with just title for the time fixed by law. (1940a)

66
Q

What are the 2 types of Partition/ Division?

A

Judicial

Extrajudicial

67
Q

What is extrajudicial partition?

A

Extrajudicial partition – The agreement may be oral or written, done outside of court.

68
Q

What is judicial partition?

A

Judicial partition – governed by the Rules of Court insofar as they are consistent with the CC. [Art. 496, CC]

69
Q

What will an action for Partition determine?

A
  1. Whether or not the plaintiff is indeed a co-owner of the property
  2. How the property will be divided between the plaintiff and defendant.
70
Q

What are the incidents of Partition?

A
  1. Mutual accounting for benefits received and reimbursement for expenses made [Art. 500, CC]
  2. Payment of damages by each co-owner by reason of his negligence or fraud. [Art. 500, CC]
  3. Liability of each co-owner for defects of title and quality of the portion assigned to each of the coowners. [Art. 501, CC]
71
Q

What are the effects of Partition?

A
  1. Confers exclusive ownership of the property adjudicated to a co-heir.
  2. Co-heirs shall be reciprocally bound to warrant the title to and the quality of each property adjudicated.
  3. Reciprocal obligation of warranty shall be proportionate to the respective hereditary shares of co-heirs.
  4. An action to enforce warranty must be brought within 10 years from the date the right accrues.
  5. The co-heirs shall not be liable for the subsequent insolvency of the debtor of the estate.
72
Q

What are the rights of third parties in cases of partition?

A
  1. The partition of a thing owned in common shall not prejudice third persons, who shall retain the rights of mortgage, servitude, or any real rights belonging to them before the division was made. [Art. 499, CC]
  2. The creditors or assignees of the co-owners may take part in the division of the thing owned in common and object to its being effected without their concurrence. [Art. 497, CC]

Exception: If the partition was already executed they cannot impugn the same.

Exception to Exception: There was fraud or a previous formal opposition against the partition, without prejudice to the right of the debtor or assignor to maintain its validity. [Art. 497, CC]

73
Q

What are the rules on notice to creditors and assignees re Partition?

A
  1. The law does not expressly require previous notice to the creditors and assignees before a partition, but the latter have the right of creditors and assignees to take part in the division.
    If notice is not given, the partition may be impugned by creditor/assignee if made in fraud of creditors.
    Once notice has been given, it is the duty of creditors and assignees to intervene and make known their stand.
  2. If they fail, they cannot question the division made, except in cases of fraud.
  3. If they formulate a formal question, they can contest such partition
74
Q

What are the options in the Partition of an indivisible thing?

A

[Art. 498, CC]

1st option: The co-owners can agree that one of them shall be the sole owner by paying the value of other co-owners’ shares

2nd option: If they cannot agree who among them shall be sole owner, the property will be sold to a 3rd person and the proceeds distributed among them

75
Q

When will Sale of Property Co-Owned be resorted to?

A

The sale shall be resorted to only if:

  1. The property is essentially indivisible
  2. The co-owners cannot agree that the entire property be allotted or assigned to one of them, who shall reimburse the other co-owners of their shares.
76
Q

What is the max years the co-owners may agree to keep the thing undivided?

A

10 years

An agreement to keep the thing undivided for a certain period of time, not exceeding 10 years, shall be valid. [Art. 494, CC]

77
Q

What is the max years a donor or testator may agrree to keep the thinng undivided?

A

20 years

A donor or testator may prohibit partition for a period which shall not exceed 20 years. [Art. 494, CC]

78
Q

What is Expropritation?

A

This is the taking of private property rights by the government for just compensation when it is for a public purpose.

CIV - Property (8 decks)

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