ARTICLE 484




 

DEFINITION:

(1)    As a manifestation of ownership, co-ownership is that form of ownership which exists whenever an undivided thing or right belongs to different persons. It is one aspect of ownership.

(2)    As a right, it has been defined as the right of common dominion which two or more persons have in a spiritual or ideal part of a thing which is not materially or physically divided.

REQUISITES OF CO-OWNERSHIP

(1)    There must be a plurality of owners

(2)    The object of ownership must be a thing or right which is undivided

(3)    Each co-owner’s right must be limited only to his ideal share of the physical whole

CHARACTERISTICS OF CO-OWNERSHIP

(1)    There are 2 or more co-owners

(2)    There is a single object which is not materially or physically divided and over which and his ideal share of the whole, each co-owner exercises ownership, together with the other co-owners;

(3)    There is no mutual representation by the co-owners;

(4)    It exists for the common enjoyment of the co-owners;

(5)    It has no distinct legal personality;

(6)    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.

SOURCES OF CO-OWNERSHIP

(a)    By law

(b)   By contract

(c)    By chance

(d)   By occupation or occupancy

(e)   By succession or will

KINDS OF CO-OWNERSHIP

(a)    From the viewpoint of subject matter:

1.       Co-ownership of an undivided thing

2.       Co-ownership of an undivided right

(b)   From the viewpoint of source:

1.       Contractual co-ownership

2.       Non-contractual co-ownership

(c)    From the viewpoint of the rights of the co-owners:

1.       Tenancy in common

2.       Joint tenancy

 

CO-OWNERSHIP DISTINGISHED FROM JOINT OWNERSHIP

 

OWNERSHIP IN COMMON / TENANCY IN COMMON

JOINT OWNERSHIP / JOINT TENANCY

Ownership of share

involves a physical whole BUT there is an IDEAL (abstract) division; each co-owner being the owner of his own ideal share

also involves a physical whole BUT there is no IDEAL (abstract) division; each and ALL of them own the WHOLE thing

Disposition of shares

Each co-owner may dispose of his ideal or undivided share (without boundaries) WITHOUT the other’s consent

Each co-owner may not dispose of his own share without the consent of ALL the rest, because he really has NO IDEAL share.

Effect of death

If a co-owner dies, his share goes to his own heirs.

If a joint-tenant dies, his share goes by accretion to the other joint-tenants by virtue of their survivorship or jus accrecendi

Legal disability or incapacity

If a co-owner is a minor, this does not benefit the others for the purpose of prescription, and prescription therefore runs against them.

If one joint-tenant is under a legal disability (like minority), this benefits the other against whom prescription will not run.

 

 

CO-OWNERSHIP DISTINGUISHED FROM PARTNERSHIP

 

CO-OWNERSHIP

PARTNERSHIP

Creation

may be created without the formalities of a contract

GR: can be created only by contract, express or implied

XPN: conjudal partnership

Personality

has no juridical or legal personality

Has juridical personality distinct from partners

Purpose

the purpose is the collective enjoyment of the thing (or right)

To obtain profits

Disposal of share

A co-owner can dispose of his share without the consent of the others with the transferee automatically becoming a co-owner

A partner, unless authorized, cannot do so and substitute another as a partner in his place

Mutual agency

there is generally no mutual representation

a partner can generally bind the partnership

Distribution of profits

the distribution of profits must be proportional to the respective interests of the co-owners

the distribution of profits is subject to the stipulation of the partners

Effect of death or incapacity

Not dissolved by the death or incapacity of a co-owner

Death or incapacity of a partners of a co-owner

Duration

an agreement to keep the thing undivided for a period of more than ten years (although it may be extended by a new agreement) is void

there may be agreement as to any definite term without limit set by law.

 

CO-OWNERSHIP DISTINGUISHED FROM CONJUGAL PARTNERSHIP

CO-OWNERSHIP

CONJUGAL PARTNERSHIP

May arise by an ordinary contract

Arises only because of the marriage contract

Sex of the co-owners is immaterial

One must be a male, the other a female

Co-owners may be 2 or more

Conjugal owners are always only 2

Profits are proportional to respective interests

Profits are generally 50-50 unless a contrary stipulation is in the MS

Death of one does not dissolve the co-ownership

Death of either husband or wife dissolves the conjugal partnership

Generally all the co-owners administer

Generally, the husband is the administrator

Co-ownership is discouraged by law

Encouraged by law to provide for better family solidarity

 

CO-OWNERSHIP DISTINGUISHED FROM EASEMENT

CO-OWNERSHIP

EASEMENT

There is in each co-owner aright of dominion over the whole property and over his undivided share

A limitation on the right of dominion

The right of ownership rests solely on each and every co-owner over a single object

The right of dominion is in favour of one or more persons and over two or more different things

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