Legal Remedies if Co-owners Refuse to Sell Inherited Land

In the Philippines, inheriting property alongside siblings or relatives often results in a state of co-ownership. While this arrangement is common, it frequently leads to disputes when one or more heirs wish to sell the property to liquidate their share, while others adamantly refuse. Under the Civil Code of the Philippines, no co-owner is forced to remain in a co-ownership indefinitely.


1. The Right to Demand Partition

The fundamental rule under Article 494 of the Civil Code is that 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 their share is concerned.

  • Exceptions: A partition may only be delayed if there is an agreement to keep the thing undivided for a certain period (not exceeding 10 years), or if the donor or testator prohibited partition (also for a maximum of 10 years).

2. Modes of Partition

If the co-owners cannot agree on a sale, the legal solution is partition, which can be done in two ways:

A. Extrajudicial Partition

This is the fastest and least expensive method. It occurs when all heirs agree on how to divide the property or agree to sell it and split the proceeds. They execute a "Deed of Extrajudicial Settlement of Estate and Partition," publish it in a newspaper of general circulation, and file it with the Register of Deeds.

B. Judicial Partition

If even one co-owner refuses to cooperate or move forward with a sale/division, the remedy is to file a Complaint for Judicial Partition in court under Rule 69 of the Rules of Court. The court will then determine if the plaintiff has a right to partition and how the property should be divided.


3. When the Property Cannot Be Physically Divided

In many cases, such as a single house or a small lot, physical division (partition in kind) is impractical or would render the property useless.

Under Article 498 of the Civil Code, if the property is "essentially indivisible" and the co-owners cannot agree that it be allotted to one of them (who shall then indemnify the others), the property must be sold and its proceeds distributed.

Legal Process for Indivisible Land:

  1. The court determines physical division is not possible.
  2. The court orders a public sale of the property.
  3. The proceeds of the sale are distributed among the co-owners according to their respective interests after deducting the costs of the sale and litigation.

4. The Right of Legal Redemption

If one co-owner decides to sell their undivided share to a third party (someone outside the family or the co-ownership) before a partition is finalized, the other co-owners have the Right of Legal Redemption under Article 1620.

They may "redeem" or buy back that share from the third party at a reasonable price within 30 days from the time they were notified in writing by the vendor. This is a mechanism to keep the property within the original group of heirs as much as possible.


5. Summary of Steps to Resolve the Refusal

If you are facing a deadlock with co-heirs, the typical legal progression is as follows:

  1. Barangay Conciliation: Since most co-owners are family members, Philippine law usually requires the dispute to undergo mediation at the Lupon Tagapamayapa before a case can be filed in court.
  2. Formal Demand Letter: A lawyer may send a formal demand to the other co-owners to either buy out the share of the person wanting to leave, or to agree to a voluntary sale.
  3. Filing of Judicial Partition: If mediation fails, the party wanting out files a case in the Regional Trial Court (RTC).
  4. Court-Ordered Appraisal and Sale: If the court finds the refusal to sell or divide is hindering the rights of the co-owner, it will appoint commissioners to value the land and, if necessary, order its sale via public auction.

Conclusion

A co-owner's refusal to sell is not a legal "brick wall." While the process of Judicial Partition can be lengthy and involves legal fees and taxes (such as Estate Tax and Capital Gains Tax), the law is clear: the right to exit a co-ownership is absolute. The court will ultimately prioritize the individual's right to their share over the collective's desire to maintain the status quo.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.