Quick answer

Before paying a reservation fee or signing anything, verify the specific project, phase, block, lot, tower, or unit against the Department of Human Settlements and Urban Development (DHSUD) records. A developer’s corporate registration, business permit, development permit, or reputation is not a substitute for a project-specific License to Sell.

Take these steps:

Ask for a clear copy of the project’s Certificate of Registration and License to Sell, including the license number and date issued.
Search the official DHSUD List of Projects with License to Sell.
Match every material detail: project name, owner or developer, exact location, project type, covered phase or portion, license number, issue date, and stated completion date.
Check the DHSUD List of Projects with Cease-and-Desist Orders.
Confirm the license’s present status directly with the DHSUD Regional Office that issued it, especially if the project is absent from the online list, has changed names, is being sold by a joint-venture partner, or presents a temporary or provisional authority.
Do not pay merely because an agent says the application is “pending,” “for release,” or “under process.” A pending application is not an issued license.

An online match is an important first check, but direct confirmation from the issuing Regional Office is the safer final step.

Why the License to Sell matters

Under Sections 4 and 5 of Presidential Decree No. 957, a covered subdivision or condominium project must be registered, and its owner or dealer must obtain a License to Sell before selling lots or units to the public.

The license is more than a general company credential. It concerns a particular real-estate project or authorized portion of that project. Under Section 6, a regular license ordinarily requires an approved performance bond intended to help guarantee project development and compliance with applicable laws and rules.

DHSUD currently performs the relevant regulatory functions transferred from the former Housing and Land Use Regulatory Board under Republic Act No. 11201.

A License to Sell does not guarantee that:

construction will never be delayed;
the developer will remain financially sound;
the property is free from every title, mortgage, zoning, or boundary issue;
the agent is properly authorized;
every statement in an advertisement is accurate; or
the particular lot or unit offered to you falls within the licensed portion.

Treat the license as essential regulatory verification—not as a substitute for full due diligence.

Which projects generally need a license?

As a general rule, subdivision projects offered to the public, with or without houses, and condominium projects must first be registered and licensed by DHSUD. Advertising or accepting payments can raise regulatory concerns even when the developer describes the transaction as an “early reservation,” “priority listing,” or “pre-selling arrangement.”

Section 7 of P.D. 957 expressly exempts the following transactions from the License to Sell and performance-bond requirements:

a sale of a subdivision lot resulting from partition among co-owners or co-heirs;
a sale or transfer of a subdivision lot by its original purchaser, and a subsequent sale of that same lot; and
a sale of a subdivision lot or condominium unit by or for a mortgagee, in the ordinary course of business, when necessary to liquidate a bona fide debt.

These are transaction-specific exceptions. Do not assume that an entire project is exempt because a seller uses terms such as “private sale,” “exclusive offering,” “investment club,” or “co-ownership.” If an exemption is claimed, request its legal and documentary basis and have DHSUD or an independent lawyer confirm that it applies to the actual transaction.

Step 1: Obtain the actual license—not just a number

Ask the developer or broker for readable copies of:

the Certificate of Registration;
the regular License to Sell, or any Temporary License to Sell;
the approved subdivision or condominium plan showing the covered phase;
the project’s approved advertisements or current sales materials;
the seller’s authority to market the project; and
the proposed reservation agreement, contract to sell, payment schedule, and disclosure of charges.

Record the exact name of the company receiving the money. It should be consistent with the owner, developer, authorized marketing entity, or duly disclosed payee shown in the documents.

A screenshot, tarpaulin, social-media post, or license number printed on a brochure is not conclusive proof. Ask for the complete document so you can see its scope, conditions, issuing office, and dates.

Step 2: Search the official DHSUD project list

Use the DHSUD List of Projects with License to Sell. Search using several fields because spelling and formatting may differ:

exact project name;
former or alternate project name;
owner or developer;
province, city, municipality, or barangay; and
License to Sell number.

The DHSUD list may show information such as the license number, issue date, project name, owner or developer, region, location, project type, and completion date.

Save a dated PDF or screenshot of the result. Online records can later change, and the saved copy may help establish what information was publicly available when you evaluated or bought the property.

Step 3: Match the license to the property being offered

A genuine license belonging to another project—or another phase of the same development—does not authorize the sale of your property.

Compare the license and DHSUD entry against:

Detail	What must be checked
Project name	Exact project identified in the reservation or contract
Owner or developer	Legal entity responsible for the licensed project
Location	Province, city or municipality, barangay, and site address
Project coverage	Phase, tower, building, block, or portion covered
Property offered	Whether your particular lot or unit is within that coverage
License number	Exact number, including regional or temporary-license notation
Issue date	Whether the authority had been issued when the property was offered
Completion date	DHSUD-approved or stated project completion date
Conditions	Any limitation, temporary status, expiry, or required compliance

Be cautious when the advertisement uses a marketing name different from the registered project name. Ask for written proof connecting both names.

For phased developments, insist on documentation showing that the specific phase containing your lot or unit is licensed. A license for Phase 1 does not automatically cover Phase 2, a later tower, or an expansion area.

Step 4: Check for suspension, revocation, or a cease-and-desist order

Issuance is not the end of the inquiry. Sections 8 and 9 of P.D. 957 allow a license to be suspended or revoked on specified grounds.

Review the DHSUD List of Projects with Cease-and-Desist Orders. Then ask the issuing Regional Office whether:

the license remains effective;
its coverage has been modified;
a suspension, revocation, or cease-and-desist order exists;
the project or developer has unresolved regulatory orders affecting sales; or
the project name, owner, developer, or joint-venture structure has changed.

A project’s appearance on the issued-license list does not, by itself, prove that no later order affects it. This is why direct status confirmation matters.

Step 5: Verify directly with the issuing DHSUD Regional Office

DHSUD itself advises prospective buyers to validate the Certificate of Registration and License to Sell with the issuing Regional Office. Use the official DHSUD Regional Offices directory rather than a phone number supplied only by the agent.

Send a written request containing:

the project’s complete name and location;
developer or owner name;
License to Sell number and date;
phase, tower, block, lot, or unit being offered;
copies of the license and advertisement; and
the seller or broker’s name.

Ask the office to confirm, in writing if possible:

whether the document was genuinely issued;
what project portion it covers;
whether it is regular, temporary, provisional, suspended, revoked, expired, or otherwise restricted;
the approved completion date;
whether a later order affects the authority to advertise or sell; and
whether the advertised project name differs from the registered name.

Keep the email, acknowledgment, reference number, and response.

Temporary Licenses to Sell require extra checking

DHSUD rules recognize a Temporary License to Sell (TLS) in qualifying circumstances while specified prerequisites for a regular license remain pending. DHSUD issued revised TLS guidelines effective in August 2026 through Department Circular No. 2026-012.

If a developer presents a TLS:

confirm the TLS number with the issuing Regional Office;
check its issuance and expiry dates;
identify the precise missing or deferred requirements;
read every stated condition;
confirm whether it has been extended, replaced by a regular license, allowed to lapse, suspended, or cancelled;
ask how buyers’ payments are protected under the applicable TLS conditions; and
require the TLS status to be accurately disclosed in the reservation agreement and advertisements.

Do not let anyone describe a temporary authority as an unrestricted regular license. Because TLS rules and individual license conditions matter, obtain current confirmation from DHSUD immediately before paying.

Documents that do not replace a License to Sell

The following may be relevant, but none alone establishes authority to sell a covered project:

Securities and Exchange Commission registration;
mayor’s or business permit;
barangay clearance;
development permit;
approved development, subdivision, or condominium plan;
building permit;
environmental clearance;
tax declaration;
land title;
Department of Trade and Industry registration;
Pag-IBIG accreditation or financing availability;
Philippine Retirement Authority or tourism-related accreditation;
a broker’s Professional Regulation Commission license; or
proof that the developer has licenses for other projects.

DHSUD expressly explains that an approved development plan and permit to develop do not, by themselves, authorize the owner or developer to sell, exchange, or otherwise dispose of lots or units.

Verify the seller as well as the project

A genuine project license does not prove that the person dealing with you is authorized.

Ask for:

the broker’s full name and PRC license details;
the salesperson’s accreditation and supervising broker;
written authority from the developer or licensed broker;
official company contact details independently obtained from the company;
a specimen official receipt; and
written confirmation of the proper account or payee.

Cross-check real-estate professionals through the official PRC online verification services. Under P.D. 957, dealers, brokers, and salespersons involved in covered project sales are also subject to project-related registration requirements. Professional licensure and DHSUD project authority serve different purposes; ideally, both should be in order.

Never transfer money to a personal account merely because an agent says it is faster or necessary to “hold” the unit. Confirm payment instructions directly with the developer through independently sourced contact details.

Continue with title and contract due diligence

Even after confirming the License to Sell, examine the underlying property and transaction.

Request and review:

a recent certified true copy of the Transfer Certificate of Title or Condominium Certificate of Title from the Registry of Deeds;
annotations for mortgages, liens, adverse claims, notices of lis pendens, or restrictions;
the approved plan and the exact location of the property;
the condominium master deed and declaration of restrictions, when applicable;
authority documents if the seller is not the registered owner;
the contract’s completion and turnover provisions;
the total price and all mandatory charges;
refund, cancellation, default, and assignment clauses;
promised facilities and specifications; and
any mortgage-release arrangement affecting the lot or unit.

Section 18 of P.D. 957 restricts a developer’s mortgage of a project lot or unit without prior regulatory approval and provides protections concerning the use of loan proceeds and notice to buyers. A title annotation should therefore be examined carefully, not dismissed as normal financing.

Red flags that justify stopping the transaction

Pause before paying if:

the developer refuses to provide the license;
only an application, acknowledgment stub, or “license forthcoming” letter is shown;
the project cannot be found in DHSUD records and the Regional Office has not confirmed it;
the license refers to a different company, location, phase, tower, or project;
details appear altered, cropped, blurred, or inconsistent;
the offered unit is in a future phase not mentioned in the license;
the project appears on a cease-and-desist list;
the TLS has expired or its present status cannot be confirmed;
advertisements conceal the temporary nature of the authority;
payment is demanded before document verification;
money must be sent to an individual or unrelated company;
the promised turnover date differs from DHSUD or contract records;
the agent discourages contact with DHSUD; or
the seller claims that a development permit, SEC registration, or broker’s license is “the same thing” as a License to Sell.

Pressure created by a supposed one-day discount is not a reason to skip legal verification.

Evidence to preserve

Keep copies of:

advertisements, webpages, messages, emails, and livestream recordings;
the CR, LS, TLS, plans, brochures, price quotation, and computation sheet;
the agent’s identification, PRC information, accreditation, and authority;
reservation agreements, contracts, disclosures, and amendments;
official receipts, bank confirmations, and payment instructions;
DHSUD search results and cease-and-desist-list checks;
your written verification request and DHSUD’s response;
photographs and videos of the site;
statements about completion, turnover, amenities, refunds, or guaranteed returns; and
a dated chronology of meetings, calls, promises, and payments.

Preserve original electronic files where possible. Screenshots should show the account name, URL, date, and complete context.

If you already paid and discover there was no license

Stop making assumptions, but do not ignore the problem.

Obtain written confirmation from the appropriate DHSUD Regional Office regarding the project’s licensing history and present status.
Secure copies of all contracts, receipts, advertisements, and communications.
Send the developer a written request for an explanation and the legal basis for accepting payment.
Avoid signing a waiver, replacement agreement, quitclaim, or backdated document without independent advice.
Report the apparent unlicensed selling to the DHSUD Regional Office.
If you seek a refund, specific performance, or another buyer remedy, consider filing before the appropriate Regional Adjudication Branch of the Human Settlements Adjudication Commission (HSAC). Section 16 of R.A. 11201 gives HSAC Regional Adjudicators jurisdiction over specified subdivision and condominium buyer disputes, including refund and specific-performance claims.
Obtain advice from a Philippine lawyer when substantial money, a threatened cancellation, a mortgage, multiple buyers, or possible fraud is involved.

Do not assume that the absence of a License to Sell automatically voids your contract. The Supreme Court has held that P.D. 957 does not make an otherwise valid contract automatically void solely because the developer lacked the required registration or license. The violation may still support regulatory sanctions and may be highly relevant to the buyer’s available remedies, but the proper result depends on the contract, facts, relief requested, and applicable law. See Co Chien v. Sta. Lucia Realty and Development, Inc. and Moldex Realty, Inc. v. Sabio.

Common mistakes

Checking only the developer’s name

Licenses are project-specific. A legitimate developer may have both licensed and unlicensed projects or phases.

Treating an online listing as the final answer

The list confirms issuance information, but a later suspension, revocation, limitation, or cease-and-desist order may matter. Confirm current status with the Regional Office.

Ignoring phase or tower coverage

Large projects are frequently marketed in stages. Match the offered property to the licensed portion.

Confusing a development permit with authority to sell

A development permit allows approved development activity; it does not replace the License to Sell.

Paying first and verifying later

Reservation documents may contain forfeiture, cancellation, or administrative-charge provisions. Verify before creating a dispute over money.

Relying entirely on the agent

Independently contact DHSUD, PRC, the developer, and—where necessary—the Registry of Deeds.

Assuming the license guarantees every promise

Amenities, finishes, views, completion dates, and payment terms must also be supported by approved plans, advertisements, and the signed contract.

When legal help is urgent

Seek prompt advice if:

you are being required to sign or pay immediately despite unresolved license questions;
the developer threatens forfeiture or cancellation;
the license appears forged or belongs to another project;
the project or your unit is mortgaged or facing foreclosure;
the same unit may have been sold to another buyer;
construction has stopped or the developer cannot be contacted;
a TLS has lapsed without a confirmed regular license;
the seller refuses a requested refund;
you are asked to sign a waiver or quitclaim;
DHSUD has issued a cease-and-desist, suspension, or revocation order; or
a complaint, appeal, demand, or contractual deadline may be running.

A lawyer should examine the actual documents before advising you to stop payments, cancel a contract, demand rescission, or file a case.

Frequently asked questions

Can a developer advertise while its License to Sell application is pending?

A pending application is not an issued license. Covered projects generally must be registered and licensed before they are advertised or sold, subject to any duly issued temporary or other authority allowed under current DHSUD rules. Verify the actual written authority and its conditions.

Is a reservation fee considered a sale?

The legal effect depends on the document and surrounding facts. Calling a payment a “reservation fee” does not necessarily remove the transaction from regulatory scrutiny. Do not pay while the seller lacks confirmed authority to offer the property.

Does an SEC-registered developer automatically have a License to Sell?

No. SEC registration concerns the company’s juridical existence. The DHSUD License to Sell concerns the particular real-estate project or covered portion.

Is a broker’s PRC license enough?

No. A PRC license concerns the professional. The project must separately have the required DHSUD authority, and the person marketing it must be properly authorized.

What if the online list does not show the project?

Do not immediately conclude either that the license is fake or that the site is current and complete. Ask the issuing Regional Office for written confirmation. Do not pay until the discrepancy is resolved.

Does one license cover every phase and tower?

Not necessarily. Read its coverage and confirm the particular phase, tower, block, lot, or unit with DHSUD.

Can a License to Sell be suspended or revoked?

Yes. P.D. 957 authorizes suspension or revocation on specified grounds. Check both the issued-license list and current enforcement status.

Does a License to Sell prove clean title?

No. Obtain a recent certified true copy of the title from the Registry of Deeds and investigate all annotations, ownership issues, and encumbrances separately.

Is an unlicensed contract automatically void?

Not solely because of the missing license. Supreme Court decisions explain that P.D. 957 does not automatically nullify an otherwise valid contract on that ground alone. Buyer remedies remain fact- and document-dependent.

Official sources

Disclaimer

This article provides general Philippine legal information, not legal advice, and cannot determine the validity of a particular license, contract, exemption, or buyer remedy without examining the documents and facts. Procedures and agency records can change. Official sources were checked as of September 1, 2026; confirm the project’s current status directly with the appropriate DHSUD Regional Office before paying or signing.