Remedies for the Unauthorized Sale of Co-Owned Property in the Philippines
(A comprehensive doctrinal and jurisprudential review)
Key takeaway: When one co-owner sells the whole property—or more than his or her ideal (pro-indiviso) share—without the written authority of the other co-owners, the sale is valid only as to the seller’s undivided share and void with respect to the shares of the non-consenting co-owners (Art. 493, Civil Code). The non-consenting co-owners are not left helpless; Philippine law and case-law give them a toolkit of overlapping remedies in civil, registration, and even criminal law.
1. Legal Foundations
| Source | Provision / Principle |
|---|---|
| Civil Code | Art. 485-494 (co-ownership) – esp. Art. 493 on disposition of an ideal or undivided share; Art. 1620 on legal redemption among co-owners; Art. 1318 et seq. on contract perfection; Art. 1390-1399 (voidable contracts) and Art. 1397(2)—action to annul contracts entered into in representation without authority; Art. 1311(2) and Art. 1398 on ratification. |
| Property Registration Decree (PD 1529) | Titling effects, indefeasibility of Torrens titles, §53 (reconveyance for fraud). |
| Revised Penal Code | Art. 315(2)(a) and Art. 316(2) – estafa by unauthorized disposition of real property of another. |
| Rules of Court | Actions accion reivindicatoria, accion nulidad, accion publiciana, accion reinvindicatoria; remedies of quieting of title, reconveyance, cancellation of TCT. |
| Leading Cases | Spouses Abalos v. Heirs of Gomez (G.R. 158989, June 16 2006); Acap v. CA (G.R. 117473, Jan 23 1995); Caro v. Spouses Yee (G.R. 190506, Aug 1 2012); F.F. Cruz & Co. v. Brillantes (G.R. 93453, Feb 27 1992); Mathay v. CA (G.R. 129099, Mar 16 1998); Natalia Realty v. Valencia (G.R. 206020, June 27 2018); Nool v. Heirs of Malang (G.R. 164588, Apr 4 2007), among many others. |
2. Nature of the Unauthorized Sale
- Partial Nullity (pro tanto) – Under Art. 493, a co-owner “may alienate, assign or mortgage his ideal share, but the effect of the alienation or mortgage shall be limited to the portion which may be allotted to him in the division upon termination of the co-ownership.”
- No Transfer of Specific Portion – Until partition, what is conveyed is NOT a determinate metes-and-bounds lot but only whatever undivided portion the seller ultimately receives.
- Void vs. Voidable? - Philippine jurisprudence consistently treats the contract as valid only to the seller’s share and void as to the rest; being partly void, the action to declare nullity is imprescriptible (Art. 1390 & Art. 1397; Abalos, Caro).
3. Menu of Remedies for the Innocent Co-Owner
| Remedy | Statute/Jurisprudence | Prescriptive Period | Practical Effect |
|---|---|---|---|
| A. Declare Partial Nullity or Annulment of the deed as to their shares (accion nulidad) | Art. 1397; Abalos; Caro | Imprescriptible if void; 4 yrs if merely voidable | Court judgment voids title pro-rata, ordering cancellation of buyer’s TCT and re-issuance reflecting correct ownership. |
| B. Reconveyance / Cancellation of Title | §53 PD 1529; Art. 1456 (trust); F.F. Cruz | (a) Fraud: 4 yrs from discovery, but not >10 yrs; (b) Void title: imprescriptible | Buyer’s TCT is cancelled; title reconveyed to co-owners or in trust. |
| C. Accion Reivindicatoria / Recovery of Possession | Art. 428; Rules of Court Rule 62 | 30 yrs (real actions) unless registrable land | Restores physical possession to co-owners (plus fruits and damages). |
| D. Legal Redemption (Art. 1620) | Art. 1620; Acap, Natalia | 30 days from WRITTEN notice of sale (strict) | Co-owner can compel buyer to resell the undivided share to them at same price, forestalling outsider entry. |
| E. Partition with Collation | Art. 494; Rules of Court Rule 69 | Imprescriptible while co-ownership subsists | Court or notary partitions property; buyer gets only seller’s share. |
| F. Damages (Art. 1170 & 1177) | Civil Code & Nool | 4 yrs (quasi-delict) / 10 yrs (written contracts) | Monetary compensation for loss of use, fruits, and litigation costs. |
| G. Criminal Action – Estafa or Falsification | RPC Arts. 315(2)(a), 316(2), 171-172 | Depends on amount; general 15 yrs from discovery* | Possible imprisonment and restitution; helps pressure settlement. |
| H. Extrajudicial Remedies – annotation of Adverse Claim (§70 PD 1529), Notice of Lis Pendens, entry in RD’s Day Book | Land Registration Act | N/A (ministerial) | Puts whole world on notice, protects against further transfers. |
*Prescription for estafa runs from discovery because the offender conceals the fraud (Art. 91 RPC; People v. Dizon, G.R. 201931, Feb 1 2016).
4. Good-Faith Purchaser for Value & Torrens System Nuances
- Indirect Protection Only – Even under Torrens, a buyer in good faith acquires only the seller’s title; they cannot acquire what the latter never owned (Mathay).
- Indefeasibility Not Absolute – A TCT that springs from a void deed is itself void and may be struck down in a direct action; indefeasibility attaches only to valid transfers.
- Double Sale Scenarios (Art. 1544). If the rogue co-owner first sells his undivided share to A, then later to B who registers, B wins only to the extent of that undivided share; the whole property cannot be lost.
5. Choosing the Best Remedy – Practical Guide
| Scenario | Fastest / Most Efficient | Why |
|---|---|---|
| Buyer willing to settle | Negotiated repurchase + Deed of Retro-Sale | Avoids litigation, lower taxes. |
| Buyer refuses but sale is recent and in writing | Legal Redemption (Art. 1620) | 30-day window is strict—use immediately. |
| Buyer already has TCT; co-owner wants property back | Action for Nullity + Reconveyance | Imprescriptible and directly attacks title. |
| Co-owners ready to go separate ways | Judicial Partition | Ends co-ownership and isolates buyer’s share. |
| Loss of possession & fruits | Accion Reivindicatoria + Damages | Recovers both possession and mesne profits. |
| Fraud or forged signature | Criminal Estafa/Falsification + Civil action for damages | Deterrent and leverage in plea-bargain restitution. |
6. Litigation Notes & Evidentiary Tips
- Written Notice for Redemption – Secure RD-certified copy of deed to prove date; send notarized notice with registry return.
- Indispensable Parties – Always join the rogue seller, the buyer, and any subsequent transferees.
- Prescription Defense – Emphasize that void acts do not prescribe (Abalos).
- Damages Proof – Keep receipts of rentals lost, tax declarations, demand letters.
- Annotation Strategy – File an Adverse Claim (valid 30 days, but renewable) or a Lis Pendens when action is filed to freeze further dealings.
7. Preventive Measures for Co-Owners
- Execute a Co-Ownership Agreement limiting acts of disposition to unanimous consent.
- Segregate Ideal Shares into titled condominium or partition early.
- Provide RD with Specimen Signatures and a copy of the agreement to flag suspicious deeds.
- Maintain open communication—many disputes stem from silence and surprise sales.
8. Conclusion
The Civil Code treats co-ownership as a “transitory and anomalous” relation; disputes are inevitable when one co-owner unilaterally sells. Philippine law equips the aggrieved co-owners with a full arsenal—from swift legal redemption and nullity suits to criminal prosecution—tempered by strict deadlines, registration rules, and good-faith doctrines. Choosing the optimal remedy requires a fact-sensitive strategy balancing speed, cost, and finality. Whenever large or registered real property is involved, professional legal counsel and immediate action are indispensable.
Disclaimer: This article is for scholarly discussion and general guidance only and does not constitute legal advice. Consult a licensed Philippine lawyer for advice on specific facts.