FACTS:

The case involves a dispute over a residential lot located in Tuguegarao, Cagayan. The lot was registered under the name of Francisco Gosiengfiao and was mortgaged to the Rural Bank of Tuguegarao. After Francisco's death, his heirs, including the plaintiffs Grace, Emma, Ester, Francisco Jr., Norma, Lina (represented by her daughter Pinky Rose), and Jacinto, became co-owners of the property. However, the mortgage on the lot remained unpaid, leading to its foreclosure and subsequent sale to the mortgagee bank as the highest bidder. Third-party defendant Amparo Gosiengfiao-Ibarra then redeemed the property by paying the outstanding amount. Subsequently, Antonia Gosiengfiao, together with her minor children and two other co-owners, executed a deed of assignment of the right of redemption in favor of Amparo. Amparo later sold the property to defendant Leonardo Mariano, who established residence on the lot. The plaintiffs, upon learning of the sale, filed a complaint for recovery of possession and legal redemption against Leonardo and his wife Avelina Mariano. The trial court dismissed the complaint, stating that the plaintiffs lost their rights to the property by failing to redeem it. On appeal, the Court of Appeals reversed the trial court's decision, declaring the respondents as co-owners of the property.

ISSUES:

1. Whether the redemption of the property by a co-owner terminates the existing state of co-ownership.

RULING:

1. The Court of Appeals ruled that the redemption of the property by a co-owner does not vest in him sole ownership over the property and does not terminate the existing state of co-ownership. The redemption inures to the benefit of all co-owners.

PRINCIPLES:

• Redemption by a co-owner within the period prescribed by law inures to the benefit of all the other co-owners and does not terminate the existing state of co-ownership. (Supported by a long line of case law)