Buying Property With a Partner: Co-Ownership Rules in the Philippines

Buying property with someone you are not married to — a partner, a sibling, a friend, or a business associate — makes both of you co-owners under the Civil Code, and co-ownership has its own default rules on shares, decisions, and how to get out, separate from anything spouses get under the Family Code. Unless your deed of sale says otherwise, the law presumes you each own an equal, undivided share of the whole property — not a specific room or floor — and every major decision from selling to renovating is governed by Articles 484 to 501 of the Civil Code of the Philippines (Republic Act No. 386, LawPhil). Couples who live together without marrying fall under a different, more specific set of rules in the Family Code, and the Supreme Court clarified in 2026 that those rules are not limited to opposite-sex couples. Knowing which regime applies before you sign anything determines what happens to your money if the relationship or the arrangement ends.

Decision Snapshot

• What it is: Co-ownership exists whenever two or more people who are not married to each other jointly own one undivided property; each holds an ideal (percentage) share, not a physical portion (Civil Code, Art. 484).
• Which law applies: Ordinary co-ownership (Civil Code Arts. 484–501) governs siblings, friends, and business partners; a different Family Code regime (Arts. 147–148) governs couples who live together as partners without marrying.
• The default share rule: Shares are presumed equal unless the title, the deed of sale, or another written agreement states otherwise (Civil Code, Art. 485).
• The key freedom — and its limit: Each co-owner can sell or mortgage their own share without asking the others, but altering or disposing of the whole property needs everyone’s consent, and administrative decisions need a majority (Civil Code, Arts. 491–493).
• An important caveat: If a co-owner sells their share to an outsider, the remaining co-owners generally have 30 days from written notice to buy that share back at the same price (legal redemption, Civil Code Art. 1620 and 1623) — and in February 2026 the Supreme Court confirmed that cohabiting partners of any gender can be recognized as co-owners under Article 148 given proof of actual contribution (Josef v. Ursua, G.R. No. 267469, Feb. 5, 2026, Supreme Court of the Philippines).
• Next step: Put the share split and an exit plan in writing before you pay anything beyond a reservation fee — the Civil Code’s default rules will otherwise fill every gap you didn’t address, and not always the way you’d expect.

What Co-Ownership Actually Means

Article 484 of the Civil Code defines co-ownership simply: “there is co-ownership whenever the ownership of an undivided thing or right belongs to different persons” (Civil Code, Art. 484, LawPhil). The key word is undivided. If you and a friend each put in half the price of a ₱4,000,000 condo unit, you do not each own “half the unit” in a physical sense — you each own an undivided 50% interest in the entire unit. Practically, that means:

• The Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) is issued in both names, typically annotated as co-owners in specified shares (e.g., “50% each” or “pro-indiviso”).
• Neither co-owner can point to a specific wall, floor, or room and call it exclusively theirs, unless a separate physical subdivision of the land is later carried out and new, individual titles are issued.
• Both names appear on the tax declaration, and both are jointly and severally exposed to obligations tied to the property, such as unpaid real property tax, subject to their right to seek reimbursement from each other for their proportional share.

Article 485 presumes equal shares “unless the contrary is proved,” and benefits and charges follow the same proportion (Civil Code, Art. 485, LawPhil). If you contributed 70% of the purchase price and your co-buyer 30%, that split has to be documented — in the deed of sale, a separate written agreement, or ideally both — or a court and the Registry of Deeds will default to treating you as equal owners regardless of what you actually paid.

Which Law Applies: Co-Ownership vs the Family Code

“Buying with a partner” can mean very different things legally, depending on whether you are married, living together without marrying, or simply co-investing with someone you have no romantic relationship with at all. Each situation is governed by a different set of default rules:

The distinction between Articles 147 and 148 of the Family Code matters because Article 148 is stricter: it does not presume joint ownership just because a couple lived together and paid some bills. It requires actual proof that each partner contributed money, property, or industry to the specific asset (Family Code, Executive Order No. 209, Arts. 147–148, LawPhil). In Josef v. Ursua, decided February 5, 2026, the Supreme Court’s Second Division, in a decision penned by Associate Justice Jhosep Y. Lopez, held that Article 148 applies to same-sex live-in partners because Philippine law does not allow them to marry each other, and it accepted a signed acknowledgment in which one partner admitted the other had paid roughly half the property’s cost as sufficient proof of actual contribution to establish co-ownership (G.R. No. 267469, Supreme Court of the Philippines). Senior Associate Justice Marvic Leonen reportedly went further in a separate opinion, noting Article 148 applies to “all forms of cohabitation” regardless of gender. The practical lesson carries over to any unmarried couple, same-sex or not: a signed, dated acknowledgment of each partner’s actual contribution is far stronger evidence than receipts or bank records alone, and it is worth creating even when the relationship is going well.

If you and your co-buyer have no romantic relationship at all — two siblings splitting an inheritance-adjacent purchase, three friends buying a rental unit together, or business partners acquiring an office condo — none of the Family Code cohabitation provisions apply. You are simply co-owners under the plain Civil Code rules described below, and that is usually the more straightforward (if less emotionally complicated) case to plan for.

The Rights Each Co-Owner Has

The Civil Code gives every co-owner a bundle of individual rights that exist independently of what the other co-owners want:

• Right to use the property according to its intended purpose, without injuring the interests of the co-ownership or preventing the other co-owners from using it too (Art. 486).
• Right to a share of any income the property generates (rent, for example), proportional to each co-owner’s interest.
• Right to bring an action in ejectment against a trespasser or an occupant with no right to be there — any one co-owner can do this alone, on behalf of all (Art. 487).
• Right to sell, assign, or mortgage their own undivided share without needing the other co-owners’ consent, since Article 493 gives each co-owner “full ownership of his part” (Civil Code, Art. 493, LawPhil). The buyer of that share simply steps into the seller’s shoes as a new co-owner — the sale does not affect the shares of the other co-owners, and no one can be compelled to consent to a sale of the whole property. The Supreme Court reaffirmed this in Arambulo v. Nolasco: a co-owner’s refusal to sell is simply an exercise of an individual ownership right, not a veto that requires “common interest” justification, and disagreement over selling is resolved through partition, not by forcing a vote (Arambulo v. Nolasco, G.R. No. 189420, Dec. 16, 2005, Supreme Court E-Library).
• Right of legal redemption if a co-owner sells their share to someone outside the co-ownership: the remaining co-owners can step in and buy that share on the same terms, but only if they act within 30 days of written notice from the selling co-owner (Civil Code, Arts. 1620 and 1623). This right does not apply if the buyer is already a co-owner.
• Right to demand partition at any time, ending the co-ownership altogether (covered in detail below).

The Decisions That Need Everyone’s Consent — and the Ones That Don’t

Not every decision about a co-owned property can be made unilaterally, and not every decision needs unanimous agreement either. The Civil Code splits acts affecting the property into three tiers:

A co-owner who wants to add a second floor, knock down a wall, or convert a residential unit into a commercial space needs every other co-owner’s written consent, even if the change would clearly increase the property’s value (Civil Code, Art. 491). Necessary repairs to preserve the property are treated differently: any one co-owner may make them and demand reimbursement from the others, but must notify the rest first if practicable (Art. 489).

Sharing the Costs: Real Property Tax and Other Expenses

Article 488 requires every co-owner to contribute to the expenses of preservation of the property and to taxes, in proportion to their share, and it allows a co-owner to be excused from contributing only by renouncing their share (a right the other co-owners are not obliged to accept if it would be prejudicial) (Civil Code, Art. 488, LawPhil). In practice, this means:

1. Real property tax notices from the Assessor’s and Treasurer’s Offices are typically addressed to all names on the tax declaration, and the local government unit can generally pursue any one co-owner for the full amount owed on the property, leaving that co-owner to seek reimbursement from the others (see our guide to Real Property Tax in the Philippines for rates, deadlines, and computation).
2. Association dues on a co-owned condo unit work the same way — the condominium corporation looks to the unit as a whole, not to a specific co-owner’s percentage.
3. Selling a co-owner’s individual share still triggers the standard transfer taxes on that portion of the transaction — capital gains tax or creditable withholding tax, documentary stamp tax, and local transfer tax — computed the same way as any other property sale.

Keeping a simple running ledger of who has paid what toward taxes, dues, repairs, and improvements is not legally required, but it is the single most useful document co-owners can maintain, since Article 500 requires “a mutual accounting for benefits received and reimbursements for expenses made” once the co-ownership is eventually partitioned (Civil Code, Art. 500, LawPhil).

Ending the Co-Ownership: Partition

No one can be forced to remain a co-owner indefinitely. Article 494 gives every co-owner the right to “demand at any time the partition of the thing owned in common,” with one exception: co-owners may validly agree in writing to keep the property undivided for a period not exceeding ten years, renewable (Civil Code, Art. 494, LawPhil). Partition can happen in a few ways:

1. By agreement. The co-owners voluntarily divide the property (if physically divisible) or agree that one buys out the other(s), or that the property is sold to a third party and proceeds are split according to each share.
2. Physical division, where the property can be split without becoming unserviceable for its intended use (for example, a large lot can sometimes be subdivided into separate titled parcels; a single condo unit generally cannot).
3. Forced sale, where the property is essentially indivisible (like a single house-and-lot or condo unit) and the co-owners cannot agree on who keeps it: Article 498 requires that it “be sold and its proceeds distributed” among the co-owners according to their shares (Civil Code, Art. 498, LawPhil).
4. Judicial partition, filed in court, when the co-owners cannot agree on any of the above — this is generally slower and more expensive than a negotiated exit, and is treated by courts as a last resort.

Article 496 confirms partition may be made “by agreement between the parties or by judicial proceedings” (Civil Code, Art. 496, LawPhil), and Article 501 makes each co-owner liable, after partition, for defects of title and quality in the portion assigned to another — similar to a seller’s warranty. Once partition happens, each former co-owner typically needs a new, individual tax declaration and, where the property was physically subdivided, a new individual title.

What Happens if a Co-Owner Dies

A co-owner’s undivided share does not disappear or automatically pass to the surviving co-owner(s) — it becomes part of the deceased co-owner’s estate and passes to their heirs, who then step into the co-ownership themselves (see our guide on Inheritance of Property in the Philippines). This is one of the most underestimated risks of informal co-ownership: two friends who buy a unit 50/50 can end up, years later, co-owning with the deceased friend’s spouse, children, or siblings — people who were never part of the original arrangement and may have very different priorities about selling, renting, or living in the unit. Estate tax also becomes due on the deceased co-owner’s share before their heirs can register their interest, which can complicate and delay a clean transfer (see our companion guide on Estate Tax When Property Is Inherited).

Structuring the Purchase to Avoid Disputes

The Civil Code’s default rules exist to fill gaps, not to replace good planning. Buyers who want more certainty than the bare statutory defaults typically address the following in writing, ideally before or at the time of purchase:

• State the actual share split in the deed of sale if it isn’t a 50/50 (or equal) contribution, since the Registry of Deeds and any future court will otherwise apply the Article 485 presumption of equality.
• Keep dated proof of each person’s actual contribution — bank transfers, official receipts, or, as Josef v. Ursua illustrates, a simple signed acknowledgment. This matters most for unmarried partners relying on Family Code Article 148, where proof of actual contribution is the whole basis of the claim, but it is good practice for any co-ownership.
• Draft a co-ownership or memorandum of agreement covering how expenses are split and reimbursed, how decisions on repairs or improvements are made, and what happens if one party wants to sell, stops paying their share, or wants to move in exclusively while the others don’t.
• Consider a right-of-first-refusal clause among the co-owners themselves, so a co-owner wanting to exit offers their share to the others first, on agreed terms, before testing the open market — this can be more predictable than relying solely on the 30-day statutory redemption window under Article 1620.
• Clarify financing arrangements separately. If you are applying for a bank or Pag-IBIG loan together as co-borrowers, each lender sets its own credit, income, and relationship documentation requirements for joint borrowers, which is a separate underwriting question from who owns what share of the title — confirm current requirements directly with the lender.
• Revisit the arrangement at major life events — marriage, having children, a falling-out, or a co-owner’s declining health — since none of these automatically update who owns what, but they often change what people actually want from the arrangement.

Worked Example: Three Friends, One Condo Unit

The scenario below is hypothetical and illustrative only — not a real transaction, and not legal or tax advice.

• Setup: Three friends buy a ₱6,000,000 condo unit together as an investment, contributing ₱3,000,000, ₱2,000,000, and ₱1,000,000 respectively (a 50%-33.3%-16.7% split). Their deed of sale names all three and explicitly states these percentage shares, avoiding the Article 485 presumption of equal shares.
• Year two — a dispute: One friend (the 16.7% co-owner) wants to renovate the unit’s layout to convert it into two rentable micro-units. The other two disagree. Because this is an alteration under Article 491, it cannot proceed without all three co-owners’ consent — a minority co-owner cannot be outvoted on an alteration the way they could be on a routine administrative matter under Article 492.
• Year three — an exit: The same friend wants out entirely and finds an outside buyer willing to pay ₱1,200,000 for their 16.7% share. Under Article 1620, the friend must give the other two co-owners written notice of the sale; they then have 30 days to redeem (buy) that share themselves on the same terms before the sale to the outsider can proceed unimpeded.
• Result: One of the remaining co-owners exercises the redemption right and buys the 16.7% share for ₱1,200,000, becoming a 66.7% majority owner, while the third co-owner remains at 16.7%. No court case was needed because the statutory redemption mechanism, combined with the friends’ own written share agreement, gave everyone a clear, pre-defined process to follow.

What to Verify Before You Rely on This

• Confirm which legal regime actually applies to your situation — marital property rules, Family Code Article 147 or 148, or plain Civil Code co-ownership — since the evidentiary burden and default share rules differ significantly.
• Get the share percentages written into the deed of sale itself, not just a side agreement, so the title and tax declaration reflect the real split from day one.
• Keep dated, signed proof of each co-owner’s financial contribution, especially for unmarried partners relying on Article 148.
• Have a lawyer draft a co-ownership agreement addressing expenses, use, decision-making, and exit mechanics before money changes hands, not after a dispute starts.
• Confirm current lender requirements directly if you plan to finance the purchase jointly, since bank and Pag-IBIG co-borrower rules can change and vary by lender.
• Re-check the title’s annotations periodically, since a co-owner can mortgage or sell their own share at any time without the other co-owners’ consent, and that change will appear on the title before anyone necessarily tells you about it informally.

Frequently Asked Questions

Do co-owners automatically own equal shares in the Philippines?

Yes, by default. Civil Code Article 485 presumes equal shares “unless the contrary is proved.” If your actual contributions were unequal, that split needs to be documented in the deed of sale or another written agreement, or the law and the Registry of Deeds will treat you as equal owners.

Can one co-owner sell the entire property without the others’ consent?

No. A co-owner can freely sell only their own undivided share (Civil Code, Art. 493). Selling the whole property requires the consent of all co-owners; if they can’t agree, the remedy is judicial partition, which can result in a court-ordered sale under Article 498, not a unilateral sale by one co-owner.

What is the difference between Family Code Article 147 and Article 148?

Article 147 applies to couples who are both legally free to marry each other and live together exclusively; it presumes jointly acquired property and even wages are owned equally. Article 148 applies when at least one partner has a legal impediment to marry the other (including same-sex partners, who cannot marry under Philippine law) and requires actual proof of each partner’s financial or other contribution before property is considered co-owned.

Does the 2026 Supreme Court ruling mean same-sex couples now have the same property rights as married couples?

No. Josef v. Ursua (G.R. No. 267469) confirmed that same-sex cohabiting partners can be recognized as co-owners under Family Code Article 148 if they prove actual contribution to the property — it did not create marital property rights or an automatic equal-sharing presumption. Proof of contribution remains essential.

Can co-owners force a co-owner who won’t pay their share of expenses to sell?

Not directly. A non-paying co-owner can be pursued for reimbursement (or have their refusal treated as a renunciation of their share for that specific expense, per Article 488), but the other co-owners cannot unilaterally force a sale of that co-owner’s interest. Any co-owner, however, can demand partition at any time under Article 494, which can ultimately lead to a court-ordered sale if the co-owners cannot agree on how to divide or buy each other out.

What happens to a co-owned property if one owner dies?

The deceased co-owner’s share becomes part of their estate and passes to their heirs, who become new co-owners alongside the surviving original co-owner(s). Estate tax must generally be settled on that share before the heirs can register their interest.

Can a co-owner rent out the whole property without asking the others?

Leasing the property is generally treated as an act of administration under Article 492, which requires approval by co-owners representing a majority interest, not unanimous consent. A single minority co-owner cannot unilaterally lease out the property against the objection of a majority.

Is a verbal agreement on shares enough, or does it need to be in writing?

The Civil Code does not require a written co-ownership agreement to exist at all, but if you want your actual (unequal) contributions recognized rather than the default equal-share presumption, or if you want to rely on Family Code Article 148 as an unmarried partner, you need provable, ideally written and signed, evidence — a verbal understanding is very difficult to enforce later.

What to Do Next

Before you sign a deed of sale with anyone you are not married to, work out which legal regime actually applies to your situation, and put the share split and each person’s contribution in writing inside, or alongside, the deed itself. If you are unmarried partners, keep dated proof of what each of you actually paid, since that proof is now doing more legal work than ever after Josef v. Ursua. If you are co-buying with a friend, sibling, or business partner, have a lawyer draft a short co-ownership agreement covering expenses, decision-making, and an exit plan — it is far cheaper to write before a dispute than to litigate through partition after one.

Figures and procedures in this article reflect published legal sources as of September 22, 2026. Co-ownership rules (Civil Code, Republic Act No. 386) and cohabitation property rules (Family Code, Executive Order No. 209, as interpreted in G.R. No. 267469) can be further clarified by future Supreme Court decisions, and tax rates and lender requirements referenced here can change by legislation, regulation, or institutional policy. Always confirm current rules with a licensed Philippine lawyer before relying on this guide for an actual transaction or agreement.