Nilo A. Mercado v. The Court of Appeals

Summary

Siblings Aurea and Nilo Mercado disputed co-ownership of real property. Aurea provided P20,000.00 to Nilo for purchasing property near UP before leaving for the US in 1964. Nilo bought the property in 1967 but registered it solely in his name. In 1973, he executed an affidavit acknowledging co-ownership with Aurea. When the property was mortgaged to SSS, foreclosed, and redeemed by Nilo without Aurea's knowledge, Nilo claimed this extinguished the co-ownership. The Supreme Court affirmed the Court of Appeals ruling that Aurea remained a co-owner, emphasizing that under Article 493 of the Civil Code, one co-owner cannot alienate another's share without consent. The case established important precedent that mortgage and foreclosure by one co-owner without the other's consent does not extinguish co-ownership rights.