Documente Academic
Documente Profesional
Documente Cultură
In recent years, its thriving economy and increasing middle class catapulted the Philippines into
one of Southeast Asia’s real estate hotspots. The advent of the property development industry is thereby
expected as the demand for multiple residential and commercial units rises. While this industry
immediately became a profitable and attractive venture by itself, property developers must be aware of
its equally high demand for capitalization, both time- and money-wise.
Before offering any of their real estate projects to the public, property developers are required to
acquire multiple permits and documents – one of which is the License to Sell.
Section 5 of Presidential Decree (PD) 957, also known as the Subdivision and Condominium
Buyer’s Protective Decree, recognizes the importance of acquiring a License to Sell before any commercial
transaction between property buyers and developers.
Primarily, it serves two main purposes - serving as a developer’s proof of legitimacy and financial
stability to complete the project as well as quality assurance of the property’s building plans and
specifications.
All regulations related to housing and land developments in the Philippines are governed by the
Housing and Land Use Regulatory Board (HLURB). Therefore, the same agency implements the issuance
of the License to Sell.
By default, all subdivision projects are mandated to apply for both a Certificate of Registration
and License to Sell. Such projects include but are not limited to: residential, commercial, farm lot, and
industrial subdivisions; all condominium projects: including residential and commercial condominiums;
and other similar projects, including cemeteries, memorial parks, and columbaria.
* DAR Conversion Order shall no longer be required as a condition for issuance of Certificate of
Registration and License to Sell in cases where the property involved is locate in an area already
classified as residential, commercial, industrial, or other similar development purposes as
provided in an updated CLUP approved under E.O. No. 672, Series of 1993.
B. Additional Requirements
1. For Condominium Projects
Owners and developers of condominium projects are required to apply for
Development Permit, Certificate of Registration, and License to Sell with the HLURB before
actual development and selling of units therein. Below are additional documents
condominium developers must prepare:
According to the Planning, Registration, and Licensing Division of the HLURB, all applications for
License to Sell must undergo three stages – which altogether totals into 21 working days. All steps for
each stage are enumerated below:
Post Application: What are your responsibilities and obligations as property developers?
The issuance of a property’s License to Sell does not automatically halt the roles and
responsibilities of property developers. Hence, HLURB advises 13 pointers on observing the agency’s
implementing rules and regulations. These include the following:
Complete the project following the approved development plan therefore not later than (Indicate
target date of completion) and advise buyers in writing of such a time frame for development.
Maintain the common facilities until their turnover is authorized under PD 1216.
Register the instrument relative to any sale with the Register of Deeds, whether or not the price is
fully paid, within 180 days from execution.
Deliver the title free from liens and encumbrance to fully paid buyers or if mortgaged redeem and
deliver the same within six months from full payment.
Secure clearance before any mortgage, alteration of plans, advertisement or change of ownership.
Pay the real estate tax/assessment on the lot/unit until the year the title is transferred to or actual
possession/ occupation is taken by the buyer.
Refrain from forfeiting payments made by the buyers who suspend amortization after due notice to
owner or developer on the ground of incomplete development or non-development.
Submit report showing its extent of project development and changes in corporate officer within sixty
days after each semester.
Observe the prescribed maximum selling price for BP 220 projects (Economic and Socialized Housing).
Display the registration certificate and this license in a conspicuous place in all offices of the owner
and developer.
Initiate the organization of home/unit owners.
Refrain from levying any fee for an alleged community benefit upon the buyers; and
Ensure the development of the Socialized Housing Project presented as compliance to Section 18, RA
7279.
As stated in Rule IV, Section 11 of PD 957, no owner or dealer shall sell any disposable subdivision
lot or condominium unit in the registered project without a License to Sell issued by the Board within two
(2) weeks from the registration of each project.
While the absence of a License to Sell does not forbid developers from selling their properties, it
can ultimately hinder them from actively marketing their projects to the public. In such cases, buyers shall
present a document called “Offer to Buy” which allows them to buy unlicensed properties while staying
fully aware of their possible consequences. Nonetheless, achieving a seamless real estate transaction
must be a collective effort among the buyer, developer, and ultimately, the local government.
For more information on the registration and licensing of subdivision and condominium
developments, developers and buyers can go to the nearest regional office of the HLURB which governs
over the place where the development is located. They may also seek the Rules and Standard
Development Group of the same agency with their contact details stated below: