Co-ownership refers to the joint ownership of an undivided property or right by different individuals. In the Philippines, co-ownership is governed by the Civil Code, specifically Book II, Title III, "Co-Ownership" (Articles 484-501). Here is a concise summary of the key points to consider before entering into a co-ownership arrangement:

1. Proportional Shares: Each co-owner's share in the benefits and charges of the property is proportional to their respective interests, unless otherwise specified in a contract (Article 485). The default assumption is that co-owners have equal shares unless proven otherwise.

2. Usage and Alterations: Co-owners have the right to use the property in accordance with its intended purpose, without infringing on the rights of other co-owners (Article 486). Any alterations to the property require the consent of all co-owners, except when the withholding of consent prejudices the common interest, in which case the courts may provide relief (Article 491).

3. Expenses and Taxes: Co-owners are obliged to contribute to the expenses for the preservation of the property and taxes in proportion to their share (Article 488). However, a co-owner may exempt themselves from this obligation by renouncing their share, as long as it does not harm the co-ownership arrangement.

4. Division and Termination: Co-owners have the right to demand the partition of the property, except when prohibited by law or agreement (Article 494). If physical division is impractical, alternative methods of termination may be pursued (Article 495). Partition can be achieved through mutual agreement or judicial proceedings (Article 496).

5. Obligations and Liability: Co-owners are accountable for benefits received, reimbursement of expenses made, and liable for damages caused by negligence or fraud (Article 500). Even after the partition, co-owners remain responsible for defects of title and quality of the portions assigned to other co-owners (Article 501).

Before engaging in co-ownership, it is recommended to consult a real estate broker or consultant who can provide guidance and advice tailored to your specific situation. Their expertise can help ensure a smooth and informed co-ownership experience.

Remember, co-ownership can be a complex undertaking, and understanding your rights, limitations, and obligations is essential for a successful and harmonious arrangement.

By: Carlo Jay (CJ) Manalo
Bachelor of Science in Real Estate Management
Pamantasan ng Lungsod ng Maynila
Legal Aspects of Real Estate | Real Estate Consulting

Source: Republic Act 386 of 1949 - Civil Code of the Philippines