Four siblings co-own a two-hectare, commercially viable property located next to a major road. The siblings have equal shares but none of them have exerted any effort to partition the property. A large retail conglomerate then offered to purchase the entire property. Three of the siblings were willing to sell, but one refused, wanting to hold on to the land in memory of their departed parents. The three willing siblings proceeded to sell their respective shares in the property to the large retail conglomerate. After the sale, the conglomerate filed a case in court to partition the property. Should the court allow the partition? Explain briefly.
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Yes, the court should allow the partition. Under Article 494 in relation to Article 493 of the Civil Code, no co-owner shall be obliged to remain in the co-ownership, and each co-owner may demand at any time the partition of the
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Quick check
Under Article 494 of the Civil Code, what is the general rule regarding co-ownership?
Article 494 provides that no co-owner shall be obliged to remain in co-ownership and each co-owner may demand partition at any time.
Under Article 493 of the Civil Code, what authority does a co-owner have over their undivided ideal share?
Article 493 grants each co-owner full ownership of their ideal share and the right to freely alienate it.
What is the legal status of a third-party buyer who purchases the undivided shares of three co-owners?
A buyer of undivided shares steps into the shoes of the selling co-owners and becomes a co-owner.
What remedy is available to a transferee who acquires undivided co-ownership shares in real property?
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Why was the court required to allow the retail conglomerate's petition for judicial partition?
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Learn more about these topics
1. Right to Partition
Under Article 494 of the Civil Code, no co-owner shall be obliged to remain in the co-ownership, and each co-owner may demand at any time the partition of the thing owned in common insofar as his share is concerned. The right to demand partition is an essential attribute of co-ownership and imprescriptible as long as the co-ownership is expressly or impliedly recognized. A co-owner cannot be compelled to maintain the community of property against his will, regardless of the sentimental value or historical significance attached to the land by the remaining dissenting co-owners.
2. Share Alienation Rights
Under Article 493 of the Civil Code, each co-owner has full ownership of his part and of the fruits and benefits pertaining thereto. A co-owner may freely alienate, assign, or mortgage his undivided share, even without the consent or knowledge of the other co-owners. However, the effect of such alienation or mortgage is limited strictly to the portion which may be allotted to the co-owner in the division upon the termination of the co-ownership. The non-consenting co-owner cannot prevent or invalidate the transfer of undivided ideal shares executed by the willing co-owners.
3. Transferee Rights Substitution
When a third party purchases the undivided shares of willing co-owners, the buyer steps into the shoes of the vendors and becomes a new co-owner of the property in common. As a substitute co-owner holding ideal interest, the transferee acquires all legal rights appertaining to co-ownership under the law, including the statutory right to institute an action for judicial partition under Rule 69 of the Rules of Court. The refusal of an original co-owner to sell or partition cannot divest the transferee of its statutory right to seek partition in court.