Selling Co-Owned Property: What Heirs Need to Know About Their Rights

TLDR: This case clarifies that when a person dies without a will, their legitimate children inherit the property equally. One heir cannot sell the entire property without the consent of all other co-owners. A sale is only valid to the extent of the selling heir’s share.

SPOUSES MARIANO (A.K.A. QUAKY) AND EMMA BOLAÑOS, PETITIONERS, VS. ROSCEF ZUÑIGA BERNARTE, CLARO ZUÑIGA, PERFECTO ZUÑIGA, AND CEFERINA ZUÑIGA-GARCIA, RESPONDENTS. G.R. No. 180997, November 17, 2010

Introduction

Imagine a family feud erupting over an ancestral home, with siblings battling over who has the right to sell and demolish. This is the reality for many families in the Philippines when it comes to co-owned property. The Supreme Court case of Spouses Bolaños v. Zuñiga Bernarte sheds light on the complexities of co-ownership, inheritance, and the rights of heirs in the Philippines. This case serves as a crucial reminder that selling property inherited from a deceased parent requires careful consideration of all heirs’ rights.

The central question in this case was whether one heir could validly sell an entire property that was inherited by multiple heirs, without the consent of all the other co-owners. The case highlights the importance of understanding the legal concept of co-ownership and its implications for property rights in the Philippines.

Legal Context: Co-ownership and Inheritance

Co-ownership, as defined in Article 484 of the Civil Code of the Philippines, exists when the ownership of an undivided thing or right belongs to different persons. This often occurs when property is inherited by multiple heirs. In such cases, each heir owns an ideal or undivided share of the entire property.

When a person dies without a will, as in this case, the laws of intestate succession govern how their estate is distributed. Article 980 of the Civil Code is particularly relevant:

“Art. 980. The children of the deceased shall always inherit from him in their own right, dividing the inheritance in equal shares.”

This means that all legitimate children inherit equally from their deceased parent. This principle is crucial for understanding the outcome of this case.

Key Legal Terms:

• Co-ownership: Ownership of a property by multiple individuals.
• Intestate Succession: Inheritance of property when a person dies without a will.
• Heir: A person who is entitled to inherit property.
• Aliquot Share: An individual’s proportionate share of a jointly owned asset.

Case Breakdown: The Family Feud Over Lot No. 1-P

The dispute began when Spouses Bolaños purchased a lot from Cresencia Zuñiga-Echague. Cresencia, in turn, had purchased the property from Flavia Zuñiga. However, Roscef Zuñiga Bernarte, Claro Zuñiga, Perfecto Zuñiga, and Ceferina Zuñiga-Garcia (collectively, Roscef, et al.) claimed that Flavia and Cresencia did not have the right to sell the entire property because it was co-owned by all the children of the deceased Roman Zuñiga, Sr.

The key events unfolded as follows:

1. Roman Zuñiga, Sr. owned a property.
2. Roman had children from two marriages.
3. Roman died without a will.
4. Flavia, one of Roman’s children, sold the property to Cresencia.
5. Cresencia sold the property to Spouses Bolaños.
6. Roscef, et al. (other children of Roman) filed a complaint, arguing the sale was invalid because they were co-owners.

The Regional Trial Court (RTC) ruled that the sale was only valid to the extent of Flavia and Cresencia’s combined shares. The Court of Appeals (CA) affirmed this decision. The Supreme Court upheld the CA’s ruling, emphasizing the principle of co-ownership and the rights of all heirs.

The Supreme Court quoted the RTC’s findings, stating:

“Roman Zuñiga, Sr. having passed away on 9 August 1976, Lot No. 1-P now forms part of his estate… In the absence of whatever evidence that he executed a will his legitimate children by his first and second marriages inherit such lot in equal share[s] as intestate heirs (Article 980, The Civil Code). It follows that Lot No. 1-P has to be divided among them into eleven equal shares.”

The Court also emphasized that:

“Until such time that Lot No. 1-P has been partitioned among Roman Zuñiga, Sr.’s eleven legitimate children, as co-owners being co-heirs their shares remain ideal… Not one of the eleven children can claim as his or hers a specifically identified portion of Lot No. 1-P.”

Practical Implications: Protecting Your Inheritance Rights

This case has significant implications for anyone dealing with inherited property in the Philippines. It underscores the importance of understanding co-ownership and the need to obtain the consent of all co-owners before selling a property.

Here are some key takeaways:

• Due Diligence is Crucial: Before purchasing property, especially if it’s inherited, conduct thorough due diligence to determine all the co-owners.
• Consent of All Co-owners: Ensure that all co-owners consent to the sale. If even one co-owner objects, the sale may be invalid except to the extent of the selling co-owner’s share.
• Partition Agreements: Consider entering into a partition agreement with all co-owners to clearly define each person’s share of the property.
• Legal Advice: Seek legal advice from a qualified attorney to understand your rights and obligations as a co-owner.

Key Lessons:

• Inherited property is often co-owned by all the deceased’s children.
• One co-owner cannot sell the entire property without the consent of all other co-owners.
• A sale without the consent of all co-owners is only valid to the extent of the selling co-owner’s share.

Frequently Asked Questions

Q: What happens if one heir sells the entire property without the consent of the other heirs?

A: The sale is only valid to the extent of the selling heir’s share. The other heirs retain their rights to their respective shares of the property.

Q: How can co-owners divide a property?

A: Co-owners can divide a property through a partition agreement, which must be agreed upon by all co-owners. If they cannot agree, they can file a court action for partition.

Q: What are the rights of a buyer who purchases property from only one co-owner?

A: The buyer only acquires the rights of the selling co-owner, which is typically a fractional share of the entire property. The buyer becomes a co-owner with the other heirs.

Q: What is intestate succession?

A: Intestate succession is the process of distributing a deceased person’s property when they die without a will. The laws of intestate succession dictate who inherits the property and in what proportions.

Q: What should I do if I am a co-owner of a property and want to sell my share?

A: You have the right to sell your share of the property. However, it is advisable to inform the other co-owners of your intention to sell and offer them the right of first refusal.

ASG Law specializes in property law and inheritance matters. Contact us or email hello@asglawpartners.com to schedule a consultation.