LECTURE ON PROPERTY

NOVEMBER 20, 2020

Chapter IV. Quieting of Title
I. IN GENERAL
II. PURPOSE
III. NATURE
IV. REQUISITES
A. THERE IS A CLOUD ON TITLE TO REAL
PROPERTY
B. THE PLAINTIFF MUST HAVE LEGAL OR
EQUITABLE TITLE TO OR INTEREST IN
THE PROPERTY
C. PLAINTIFF MUST RETURN THE
BENEFITS RECEIVED FROM THE
DEFENDANT
V. PRESCRIPTION
Article 476. Whenever there is a cloud on title to
real property or any interest therein, by reason of
any instrument, record, claim, encumbrance or
proceeding which is apparently valid or effective
but is in truth and in fact invalid, ineffective,
voidable, or unenforceable, and may be
prejudicial to said title, an action may be brought
to remove such cloud or to quiet the title.

An action may also be brought to prevent a cloud from

being cast upon title to real property or any interest
therein.
Article 478. There may also be an action to quiet
title or remove a cloud therefrom when the
contract, instrument or other obligation has been
extinguished or has terminated, or has been
barred by extinctive prescription.
I. In General

1. Applicable to real property

2. Basis: Equity comes to the aid of the plaintiff who

would suffer if the instrument (which appear to be
valid but is in reality void, ineffective, voidable or
unenforceable) was to be enforced.
II. Purpose

1. To declare:

a. The invalidity of a claim on a title

b. The invalidity of an interest in property

2. To free the plaintiff and all those claiming under him

any hostile claim on the property.
III. Nature: Quasi in Rem

1. A suit against a particular person or persons in

respect to the res and the judgment will apply only to
the property in dispute.

2. The action to quiet title are characterized as

proceedings quasi in rem. Technically, they are neither
in rem nor in personam. In an action quasi in rem, an
individual is named as defendant. However, unlike
suits in rem, a quasi in rem judgment is conclusive only
between the parties. (Spouses Portic v. Cristobal)
Justifications for quieting of title—

1. To prevent future or further litigation on the

ownership of the property

2. To protect the true title and possession

3. To protect the real interest of both parties

4. To determine and make known the precise state of

the title for the guidance of all
The action to quiet title does not apply—

1. To questions involving interpretation of documents

2. To mere written or oral assertions of claims

a. Unless made in a legal proceeding

b. Or asserting that an instrument or entry in plaintiff’s
favor is not what it purports to be

3. To boundary disputes
4. To deeds by strangers to the title unless purporting to
convey the property of the plaintiff
5. To instruments invalid on their face
6. Where the validity of the instrument involves a pure
question of law
IV. Requisites

REQUISITES OF AN ACTION TO QUIET TITLE—

1. There is a CLOUD on title to real property or any

interest to real property.

2. The plaintiff must have legal or equitable title to, or

interest in the real property.

3. Plaintiff must return the benefits received from the

defendant.
A. There is a CLOUD on title to real property or any
interest to real property—

1. “Cloud on title” means a semblance of title, either

legal or equitable, or a claim or a right in real property,
appearing in some legal form but which is, in fact,
invalid or which would be inequitable to enforce.
2. A cloud exists if:

a. There is a claim emerging by reason of:

--Any instrument e.g. a contract, or any deed of

conveyance, mortgage, assignment, waiver, etc.
covering the property concerned

--Any record, claim, encumbrance e.g. an attachment,

lien, inscription, adverse claim, lis pendens, on a title

--Any proceeding e.g. an extrajudicial partition of

property
b. The claim should appear valid or effective and
extraneous evidence is needed to prove their validity or
invalidity.

Test: Would the owner of the property in an action for

ejectment brought by the adverse party be required to
offer evidence to defeat a recovery?

As a general rule, a cloud is not created by mere verbal

or parole assertion of ownership or an interest in
property.
c. Such instrument, etc. is, in truth and in fact, invalid,
ineffective, voidable, or unenforceable, or has been
extinguished or terminated, or has been barred by
extinctive prescription.

d. Such instrument, etc. may be prejudicial to the true

owner or possessor.
B. The plaintiff must have legal or equitable title to, or
interest in the real property—

Article 477, Civil Code. The plaintiff must have legal

or equitable title to, or interest in the real property
which is the subject matter of the action. He need not
be in possession of said property.
1. Legal title: the party is the registered owner of the
property.

2. Equitable title: the person has the beneficial

ownership of the property.
C. Plaintiff must return the benefits received from the
defendant—

Article 479. The plaintiff must return to the

defendant all benefits he may have received from
the latter, or reimburse him for expenses that may
have redounded to the plaintiff's benefit.
NOTE: REQUISITES OF AN ACTION TO
PREVENT A CLOUD—

1. Plaintiff has a title to a real property or interest

therein

2. Defendant is bent on creating a cloud on the title or

interest therein. The danger must not be merely
speculative or imaginary but imminent.

3. Unless the defendant is restrained or stopped, the

title or interest of the plaintiff will be prejudiced or
adversely affected.
V. Prescription of Action

1. When plaintiff is in possession of the property – the

action to quiet title does not prescribe.

a. The reason is that the owner of the property or right

may wait until his possession is disturbed or his title is
assailed before taking steps to vindicate his right.
b. An action to quiet title to property in one’s
possession is imprescriptible.

The rationale for this rule has been aptly stated thus:

“ The owner of real property who is in possession

thereof may wait until his possession is invaded or his
title is attacked before taking steps to vindicate his
right. A person claiming title to real property, but not
in possession thereof, must act affirmatively and within
the time provided by the statute.
Possession is a continuing right as is the right to defend
such possession. So it has been determined that an
owner of real property in possession has a continuing
right to invoke a court of equity to remove a cloud that
is a continuing menace to his title.

Such a menace is compared to a continuing nuisance or

trespass which is treated as successive nuisances or
trespasses, not barred by statute until continued without
interruption for a length of time sufficient to affect a
change of title as a matter of law." (Pingol v. CA)
2. When the plaintiff is not in possession of the
property, the action to quiet title may prescribe.

a. 10 yrs. – ordinary prescription

b. 30 yrs. – extraordinary prescription

Article 480, Civil Code. The principles of the general

law on the quieting of title are hereby adopted insofar
as they are not in conflict with this Code.

Article 481, Civil Code. The procedure for the quieting

of title or the removal of a cloud therefrom shall be
governed by such rules of court as the Supreme Court
shall promulgate.
Chapter V. Co-Ownership
I. DEFINITION

II. CHARACTERTISTICS

A. There is a plurality of owners but only one real right

or object of ownership.
b. The recognition of ideal shares or aliquot defined but
not physically identified
c. Each co-owner has absolute control over his ideal
share
d. Mutual respect among co-owners in regard to use,
enjoyment and preservation of the things as a whole.
III. DIFFERENCE BETWEEN CO-OWNERSHIP
AND JOINT TENANCY

IV. DIFFERENCE BETWEEN CO-OWNERSHIP

AND PARTNERSHIP
V. SOURCES OF CO-OWNERSHIP

A. LAW

1. COHABITATION
2. PURCHASE
3. INTESTATE SUCCESSION
4. DONATION
5. CHANCE—COMMIXTION IN GOOD FAITH
6. HIDDEN TREASURES
7. EASEMENT OF PARTY WALL
8. OCCUPATION—HARVESTING AND FISHING
9. CONDOMINIUM LAW
B. CONTRACTS

1. BY AGREEMENT OF 2 OR MORE PERSONS

2. BY UNIVERSAL PARTNERSHIP

3. BY ASSOCIATION AND SOCIETIES WITH

SECRET ARTICLES
VI. RIGHTS OF EACH CO-OWNER OVER THE
THING OR PROPERTY OWNED IN COMMON

A. TO USE THE THING ACCORDING TO THE

PURPOSE INTENDED

B. TO SHARE IN THE BENEFITS IN PROPORTION

TO HIS INTEREST, PROVIDED THE CHARGES
ARE BORNE BY EACH IN THE SAME
PROPORTION

C. TO BRING AN ACTION IN EJECTMENT

D. TO COMPEL THE OTHER CO-OWNERS TO
CONTRIBUTE TO THE EXPENSES FOR THE
PRESERVATION OF THE PROPERTY OWNED IN
COMMON AND TO THE PAYMENT OF TAXES

E. TO OPPOSE ANY ACT OF ALTERATION

F. TO PROTEST AGAINST ACTS OF MAJORITY

WHICH ARE SERIOUSLY PREJUDICIAL TO THE
MINORITY

G. TO EXERCISE LEGAL REDEMPTION

H. TO ASK FOR PARTITION

VII. IMPLICATIONS OF CO-OWNER’S RIGHT
OVER HIS IDEAL SHARE

A. RIGHTS OF A CO-OWNER
B. EFFECT OF TRANSACTION BY EACH CO-
OWNER

VIII. RULES ON CO-OWNERSHIP NOT

APPLICABLE TO CPG OR ACP

IX. SPECIAL RULES ON OWNERSHIP OF

DIFFERENT STORIES OF A HOUSE AS
DIFFERENTIATED FROM THE PROVISIONS OF
THE CONDOMINIUM ACT
X. EXTINGUISHMENT OF CO-OWNERSHIP

A. TOTAL DESTRUCTION OF THE THING OR

LOSS OF THE PROPERTY CO-OWNED

B. MERGER OF ALL INTERESTS IN ONE PERSON

C. ACQUISITIVE PRESCRIPTION

D. PARTITION OR DIVISION
I. Definition

Article 484, Civil Code. There is co-ownership

whenever the ownership of an undivided thing or right
belongs to different persons.

In default of contracts, or of special provisions, co-

ownership shall be governed by the provisions of this
Title.
B. There are ideal shares defined but not physically
identified

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 co-owners in the co-

ownership shall be presumed equal, unless the contrary
is proved.
II. Characteristics

A. There is a plurality of owners but only one real right

or object of ownership

1. There are at least 2 persons

2. There is unity or material indivision of a single

object.
C. Each co-owner has absolute control over his ideal
share. Every co-owner has absolute ownership of his
undivided interest in the co-owned property and is free
to alienate, assign or mortgage his interest except as to
purely personal rights. While a co-owner has the right
to freely sell and dispose of his undivided interest,
nevertheless, as a co-owner, he cannot alienate the
shares of his other co-owners – nemo dat qui non
habet. (Acabal v. Acabal)
D. Mutual respect among co-owners in regard to use,
enjoyment and preservation of the things as a whole

1. The property or thing held pro-indiviso is impressed

with a fiduciary character: each co-owner becomes a
trustee for the benefit of his co-owners and he may not
do any act prejudicial to the interest of his co-owners.
2. Until a judicial division is made, the respective part
of each holder cannot be determined. The effects of
this would be:

a. Each co-owner exercises together with the others

joint ownership over the pro indiviso property, in
addition to his use and enjoyment of the same

b. Each co-owner may enjoy the whole property and

use it.

Only limitation: a co-owner cannot use or enjoy the

property in a manner that shall injure the interest of his
other co-owners. (Pardell v. Bartolome)
V. Sources of Co-Ownership

A. Law

1. Cohabitation: co-ownership between common law

spouses—

The Family Code, in the following provisions, made

the rules on co-ownership apply

--Article 147: between a man and a woman capacitated

to marry each other
– Article 148: between a man and a woman not
capacitated to marry each other

– Article 90: if matter is not provided in the FC

Chapter on ACP, then rules on co-ownership will apply
2. Purchase creating implied trust: co-ownership
between persons who agree to purchase property—

Article 1452, Civil Code. If two or more persons agree

to purchase property and by common consent the legal
title is taken in the name of one of them for the benefit
of all, a trust is created by force of law in favor of the
others in proportion to the interest of each.
3. Intestate succession: co-ownership between the heirs
before partition of the estate

a. Article 1078, Civil Code. Where there are two or

more heirs, the whole estate of the decedent is, before
its partition, owned in common by such heirs, subject
to the payment of debts of the deceased.
4. Donation: Co-ownership between donees Article
753, Civil Code. 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.
5. Chance/Commixtion in Good Faith: Co-ownership
between owners of 2 things that are mixed by chance
or by will of the owners Article 472, Civil Code. If by
the will of their owners two things of the same or
different kinds are mixed, or if the mixture occurs by
chance, and in the latter case the things are not
separable without injury, each owner shall acquire a
right proportional to the part belonging to him, bearing
in mind the value of the things mixed or confused.
6. Hidden Treasure – co-ownership between finder and
owner of the land.

Article 438, Civil Code. Hidden treasure belongs to the

owner of the land, building, or other property on which
it is found.

Nevertheless, when the discovery is made on the

property of another, or of the State or any of its
subdivisions, and by chance, one-half thereof shall be
allowed to the finder. If the finder is a trespasser, he
shall not be entitled to any share of the treasure.

If the things found be of interest to science or the arts,

the State may acquire them at their just price, which
shall be divided in conformity with the rule stated.
7. Easement of Party Wall – co-ownership of part-
owners of a party wall.

Article 658, Civil Code. The easement of party wall

shall be governed by the provisions of this Title, by the
local ordinances and customs insofar as they do not
conflict with the same, and by the rules of co-
ownership.
8. Occupation: Harvesting and Fishing: c-oownership
by two or more persons who have seized a res nullius
thing.
9. Condominium Law: co-ownership of the common
areas by holders of units

Sec. 6, RA 4726. The Condominium Act. Unless

otherwise expressly provided in the enabling or master
deed or the declaration of restrictions, the incidents of a
condominium grant are as follows:

(c) Unless otherwise, provided, the common areas are

held in common by the holders of units, in equal
shares, one for each unit.
B.Contracts

1. By Agreement of Two or More Persons

a. Article 494, Civil Code. 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.
b. Two or more persons may agree to create a co-
ownership

c. Note: there is a 10-year term limit for ownership by

agreement; BUT: Term may be extended by a new
agreement
2. By the creation of a Universal Partnership

a. Of all present property

--Article 1778, Civil Code. A partnership of all present

property is that in which the partners contribute all the
property which actually belongs to them to a common
fund, with the intention of dividing the same among
themselves, as well as all the profits which they may
acquire therewith.
– Article 1779, Civil Code. In a universal partnership
of all present property, the property which belonged to
each of the partners at the time of the constitution of
the partnership, becomes the common property of all
the partners, as well as all the profits which they may
acquire therewith.

A stipulation for the common enjoyment of any other

profits may also be made; but the property which
the partners may acquire subsequently by inheritance,
legacy, or donation cannot be included in such
stipulation, except the fruits thereof.
b. Of profits

Article 1780, Civil Code. A universal partnership of

profits comprises all that the partners may acquire by
their industry or work during the existence of
the partnership.

Movable or immovable property which each of the

partners may possess at the time of the celebration of
the contract shall continue to pertain exclusively to
each, only the usufruct passing to the partnership.
3. By Associations and Societies with Secret Articles

Article 1775, Civil Code. Associations and societies,

whose articles are kept secret among the members, and
wherein any one of the members may contract in his
own name with third persons, shall have no juridical
personality, and shall be governed by the provisions
relating to co-ownership.
VI. 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. 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.

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. 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 co-owners in the co-
ownership shall be presumed equal, unless the
contrary is proved.
Right to bring an action in ejectment—

Article 487. 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 (reinvindicatoria, 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. 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. 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.
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

– 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. 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 COWORKERS

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 vs. Administration

More permanent result and Refers to the enjoyment of

relate to the substance or the thing and is of
form of the thing transitory character
Nature: if the thing does When the thing in its
not require any nature requires changes,
modification for its modifications can be
enjoyment, any considered as acts of
modification that is made simple administration
will be considered an
alteration
Consent: Unanimous Consent: mere majority is
consent of all 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. (Par. 3) 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 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. 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. The right of legal pre-emption or
redemption 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. 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. 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 redemption, the
owner whose intended use of the land in question
appears best justified shall be preferred.
Right to ask for partition—

Article 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.
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 His Ideal
Share

A. Rights of a Co-owner
1. To share in fruits and benefits
2. To alienate, mortgage, or encumber and dispose his
ideal share (but other co-owners may exercise right of
legal redemption within 30 days from notification of
prospective coowner vendor)
3. To substitute another person in the enjoyment of
thing
4. To renounce part of his interest to reimburse
necessary expenses incurred by another co-owner
(Article 488)
Article 488. 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.
B. Effect of Transaction by Each Owner

1. Limited to his share in the partition

2. Transferee does not acquire any specific portion of

the whole property until partition

3. Creditors of co-owners may intervene in the partition

to attack the same if it is prejudicial (Art. 499)
Article 499. The partition of a thing owned in
common shall not prejudice third persons, who
shall retain the rights of mortgage, servitude or
any other real rights belonging to them before the
division was made. Personal rights pertaining to
third persons against the co-ownership shall also
remain in force, notwithstanding the partition.
Note: Creditors cannot ask for rescission even if not
notified in the absence of fraud (Art. 497, Civil Code)
Article 497. 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. But they cannot impugn
any partition already executed, unless there has
been fraud, or in case it was made
notwithstanding a formal opposition presented to
prevent it, without prejudice to the right of the
debtor or assignor to maintain its validity.
VIII. Rules on Co-Ownership Not Applicable to CPG
or ACP

– These two regimes are governed by the provisions on

the Family Code
– Even void marriages and cohabitation of
incapacitated persons are governed by Article 50, 147,
and 148 of the Family Code
IX. Special Rules on Ownership of Different Stories of
a House as Differentiated from Provisions of the
Condominium Act

(Please read RA 4726. THE CONDOMINIUM ACT)

Concept of Condominium—

It is an interest in real property consisting of a:

1. SEPARATE INTEREST in a unit in a

a. residential, or
b. industrial, or
c. commercial building

2. UNDIVIDED INTEREST in common directly or

indirectly,
a. in the land on which it is located
b. in other common areas of the building
When Ownership of the Unit is Acquired—

1. Ownership is acquired only after the buyer had fully

paid the purchase price.

2. The ownership of the unit is what makes the buyer a

shareholder in the condominium.

Note: The condominium law effectively separates the

building from the land (by a master deed)
3. Building is deemed an accessory

Amendments—

Co-ownership in common areas means shared expenses

in these areas

1. Sec 4: simple majority of the property

2. Sec 16: common areas may be disposed by

affirmative vote of a simple majority of the registered
owners
What Does the Housing and Land Use Regulatory
Board Do?—

They hear the complaints of buyers.

Important Documents in Condo Ownership

1. Deed of sale
2. Master deed (Sec. 4)
3. Declaration of restrictions (Sec. 9): pertains to how
common areas will be governed and who will do the
governing
a. i.e. how to contribute to common area expenses:
contribution to maintenance, upkeep, repair of common
areas included
b. there is an “Assessment”, which is a lien upon the
condo unit
X. Extinguishment of Co-Ownership

A. Total destruction of thing or loss of the property co-

owned

Is there still co-ownership if a building is destroyed?—

Yes, over the land and the debris.

B. Merger of all interests in one person

C. Acquisitive Prescription

By whom—
1. A third person (Art. 1106)
2. A co-owner against the other co-owners
Requisites—

1. Unequivocal acts of repudiation of the rights of the

other co-owners (you oust the other co-owners)

a. Must be shown by clear and convincing evidence

b. Must be within the knowledge of the other co-
owners c. Must not be a mere refusal to recognize the
others as co-owners
2. Open and adverse possession - Not mere silent
possession
Note: there is a presumption that possession of a co-
owner is NOT adverse

-- Prescription only arises and produces all effects

when the acts are clearly meant to oust the rights of the
other co-owners
D. Partition or Division

Effects of Partition—

1. Confers upon each heir the exclusive ownership of

the property adjudicated to him
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
Note: Unless partition is effected, each heir cannot
claim sole ownership over a definite portion of the land
and cannot dispose of the same. Heirs become the
undivided owner of the whole estate – each co-owner
shall have full ownership if his part even as to fruits
and benefits. He may alienate, assign or mortgage his
share. The effect of such act shall be limited to the
portion allotted to him during partition. Until said
partition though, he cannot alienate a specific part of
the estate. A co-owner cannot adjudicate to himself a
definite portion owned in common until partition by
agreement or by a judicial decree. Until then, they can
only sell their successional rights. (Carvaria v. CA)
 Rights of Creditors of Individual Co-
Owners—

Article 497. 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. But they cannot impugn
any partition already executed, unless there has
been fraud, or in case it was made
notwithstanding a formal opposition presented to
prevent it, without prejudice to the right of the
debtor or assignor to maintain its validity.
– Creditors referred to in the provision: All creditors,
whether ordinary or preferred, who became such
during the subsistence of the co-ownership.

– Rule: The creditors are allowed to take part in the

partition.

– Reason for the rule: They own part of the interest of

the o-owners who made the assignment or alienation.
Procedure for Partition—

– Governing rule: Rule 69 of the Rules of Court

– How: By agreement by parties or by judicial decree
– Form: Oral or Written (Statute of Frauds does not
operate here because it is not a conveyance of property
but a mere segregation or designation of which parts
belong to whom)
– Rules of Court does not preclude agreements or
settlements.
– Action for Partition:
a. WON the plaintiff is indeed a co-owner of the
property
b. HOW will the property be divided between the
plaintiff and defendant.
– Intervention of creditors and assignees:
a. The law does not expressly require that there should
be a previous notice to the creditors and assignees
before a partition can be validly made, but the right of
creditors and assignees to take part in the division
presupposes the duty to notify them.
b. If notice is not given, the partition will not be
binding on them.
c. Once notice has been given, it is the duty of creditors
and assignees to intervene and make known their stand.
i. If they fail to do this, they cannot question the
division made, except in case of fraud.
ii. If they formulate a formal question to its being
made, they can contest such partition mad in spite of
their opposition.