A practical legal article for subdivision and condominium developers
1) Why DHSUD matters for real estate projects
In the Philippines, most subdivision and condominium projects intended for sale to the public cannot be lawfully marketed—much less sold—unless the project is properly registered with the Department of Human Settlements and Urban Development (DHSUD) and the developer has obtained the appropriate authority to sell (commonly known as a License to Sell or LTS, depending on the project type/classification).
DHSUD is the national government agency that absorbed the former HLURB’s key regulatory functions on housing and real estate development. In practice, developers interact with DHSUD primarily for:
- Project Registration (recording/approving the project for sale to the public, based on statutory standards); and
- License to Sell (LTS) (the authority to market and sell the lots/units to buyers).
Bottom line: If you sell, offer for sale, advertise, or take “reservations” in a covered project without the required DHSUD approvals, you expose the project and responsible officers to administrative sanctions and buyer claims—and you risk the enforceability of your sales/marketing activity.
2) Core legal framework (Philippine context)
While requirements vary by project type and classification, DHSUD regulation for project registration and selling authority commonly traces to these laws and implementing rules:
P.D. 957 (Subdivision and Condominium Buyers’ Protective Decree)
- Primary law governing the sale of subdivision lots and condominium units, including registration and licensing.
B.P. Blg. 220 (Socialized Housing standards)
- Applies to economic and socialized housing projects and prescribes different planning and development standards in many cases.
R.A. 4726 (Condominium Act), as amended
- Governs condominium concepts like condominium corporations, master deeds, common areas, and related documentation.
Local Government Code / local ordinances and national environmental laws
- Local approvals (zoning, development permits, building permits) and environmental compliance often function as prerequisites or parallel compliance.
DHSUD implements these through circulars, rules, checklists, and internal processing protocols that can evolve. So the “law” is stable, but the filing mechanics (portals, appointment systems, and document formats) may change.
3) What projects typically need DHSUD registration and LTS
A. Covered projects (commonly)
- Subdivision projects (open market, economic, socialized) where lots are offered for sale.
- Condominium projects where units are offered for sale.
- Certain phased developments, expansions, or substantial plan changes that effectively create a new or materially revised selling inventory.
B. Transactions that often trigger compliance concerns
- Advertising a project “for sale”
- Accepting “reservations,” “expressions of interest,” or “down payments”
- Signing contracts to sell or deeds of sale
- Offering pre-selling inventory
Even if a developer calls payments “refundable reservations,” regulators may treat these as part of selling activity if the substance shows marketing/sale to the public.
4) Before DHSUD: the prerequisites developers should line up
Think of DHSUD registration as the capstone of a compliance stack. The most common cause of delays is filing with missing upstream approvals.
A. Corporate/authority readiness (developer-side)
Prepare your developer identity and authority:
- SEC registration (corporation/partnership), or DTI registration (sole prop), as applicable
- Corporate secretary’s certificates / board resolutions authorizing the project and signatories
- Audited financial statements (and/or other proof of financial capacity, depending on classification)
- Tax registrations (BIR) and basic permits (may be requested depending on internal checklists)
B. Land due diligence (project-side)
DHSUD submissions generally expect the project site to be legally clean and clearly controlled:
- Owner’s duplicate title (or evidence of title status)
- If not owner-developer: instruments showing authority to develop/sell (e.g., deed of sale, joint venture agreement, contract to sell, long-term lease + authority, development agreement, SPA/authorization)
- Updated tax declaration / real property tax status
- Technical description, lot data, and surveys consistent with title
C. Local Government Unit approvals (usually essential)
Depending on project type and local requirements:
- Zoning/locational clearance (or zoning certification)
- Development permit (for subdivisions) or planning clearance aligned with local planning requirements
- Building permits (especially relevant for vertical condominium development), or proof of application/approval status depending on the project’s stage and the filing type
- Barangay and local endorsements if required by the LGU
D. Environmental compliance (often a gating item)
Depending on size/location:
- ECC (Environmental Compliance Certificate) or CNC (Certificate of Non-Coverage), as applicable
- Supporting environmental documentation where required
5) Understanding “Project Registration” vs “License to Sell (LTS)”
Although developers often talk about these as one package, conceptually they are different:
Project Registration
- Establishes the project in the regulatory system as a registrable development for sale, based on compliance with planning, documentary, and financial standards.
- Locks in the project’s identity (name, location, scope, number of lots/units, phases, plans).
License to Sell (LTS)
- The authority to market and sell the registered inventory to the public.
- Typically requires proof that the developer can deliver the project as promised (including financial capacity and compliance with development obligations).
Many developers file these in sequence or as closely linked applications, depending on the classification and DHSUD process applicable to them.
6) Step-by-step: applying for Real Estate Project Registration (Philippines)
Below is the “real world” sequence that usually works best.
Step 1: Classify your project correctly
Your requirements change depending on classification:
- Subdivision vs Condominium
- Open market vs Economic/Socialized
- Single-phase vs Multi-phase
- With/without amenities; with/without road networks; vertical vs horizontal
Correct classification matters because it drives which law/standards apply (e.g., P.D. 957 standards vs B.P. 220 standards) and the documentary checklist.
Step 2: Prepare technical plans and professional sign-offs
Common technical submissions include:
- Vicinity/location map
- Site development plan
- Subdivision plan (for subdivisions)
- Building plans/architectural and engineering plans (for condominiums)
- Grading and drainage plans, road networks, utilities (as applicable)
- Cost estimates / bill of materials (especially where financial capacity and completion obligations are evaluated)
Plans are typically expected to be signed and sealed by the appropriate licensed professionals (e.g., architect, civil engineer, geodetic engineer), consistent with Philippine practice.
Step 3: Assemble the documentary package
While exact checklists vary by DHSUD office and project type, the package often includes:
A. Developer/Applicant documents
- SEC/DTI documents and articles/bylaws (as applicable)
- Board resolution / secretary’s certificate authorizing the application and signatories
- Authorized representative documents (SPA/authority letter + IDs)
- Audited financial statements / proof of financial capacity (varies by classification)
B. Land documents
- Title and certified true copies when required
- Chain of authority to develop and sell (if developer is not the titled owner)
- Tax declaration and tax clearances if requested
- Survey plans/technical descriptions aligned with title
C. Government permits/clearances
- Zoning/locational clearance
- Development permit (subdivision) and/or building permits (condo), depending on the stage and the filing type
- ECC/CNC
- Other local clearances required for the area/project
D. Project documents
Project brief and description
Inventory schedule (number of lots/units, phases, saleable areas)
Drafts of buyer-facing documents (depending on the stage), such as:
- Contract to Sell templates
- Deed of Restrictions / project rules (especially for subdivisions)
- For condominiums: master deed / declaration of restrictions and condominium corporation-related documentation (as applicable)
Step 4: File with the correct DHSUD office and pay filing fees
DHSUD filing is typically done through the office that has jurisdiction over the project location (national/regional/field office depending on current DHSUD organization).
Fees usually depend on:
- Project type (subdivision/condo)
- Number of lots/units
- Project cost/valuation brackets (in some systems)
- Phasing and amendments
Because fee schedules can be revised, developers should treat the cashier assessment as the controlling computation.
Step 5: Respond to evaluation findings (deficiencies)
A very common phase is the issuance of an evaluation report or deficiency list. Best practices:
- Reply point-by-point using the evaluator’s numbering
- Submit clean replacement pages (not just addenda) when the issue is clarity/consistency
- Ensure all plan sheets and narrative descriptions match (name, land area, boundaries, number of units, phase breakdown, etc.)
Step 6: Receive Project Registration approval (and proceed to LTS, if not simultaneous)
Once approved, maintain the approval documents carefully. They become the anchor for:
- LTS application
- Advertising clearance/controls
- Amendments (revision of plans, expansion, phase changes)
- Buyer complaint defense (because your representations should match your approvals)
7) How to apply for a License to Sell (LTS) after registration
While DHSUD may vary the sequencing by classification, LTS commonly requires:
- Finalized project registration basis (plans, inventory, permits)
- Proof of development ability and financial capacity
- Compliance with advertising/marketing rules
- Standard buyer contract forms consistent with regulatory expectations
- Performance undertakings and other risk-control instruments where required
Important compliance note: Many enforcement actions arise from “soft selling” before an LTS—social media ads, agent recruitment, reservation collection, and showroom marketing.
8) Scheduling an appointment with DHSUD (practical guide)
DHSUD offices increasingly use appointment systems (often online) to manage intake, evaluation, and releasing. While the exact platform and steps can differ by office and can change over time, the appointment workflow is typically the same.
A. When an appointment is usually needed
- New project registration filing (initial intake)
- LTS filing or significant follow-up submissions
- Releasing of approved documents
- Conferences/clarificatory meetings with evaluators (some offices schedule these)
B. Typical appointment steps
Identify the service category Examples: project registration, LTS, amendment, compliance, receiving/releasing.
Prepare a complete pre-check package before you book Many offices will refuse incomplete walk-ins even with appointments.
Book a slot under the correct office (jurisdiction of the project site)
Encode accurate project details Project name, location, developer name, contact details, authorized representative.
Upload documents if required Some appointment systems require pre-upload; others are “booking only.”
Receive confirmation Keep the confirmation reference, email/SMS, and any QR/appointment number.
Appear on time with originals and photocopies Bring valid IDs; bring authorization documents if filing through a representative.
C. Filing through representatives (agents, staff, liaison)
Bring:
- Authorization letter or SPA (as appropriate)
- Company ID or valid government ID
- Secretary’s certificate/board resolution authorizing signatories (for corporate applicants)
- Contact details of the accountable officer in case the office requires verification
D. Rescheduling/cancellation
Most systems impose cutoffs (e.g., no same-day reschedule). If you miss a slot, you may be pushed to the back of the queue.
E. Practical appointment-day checklist
- Two sets of indexed, tabbed documents
- Soft copy backup (USB/cloud)
- Proof of payment or readiness to pay
- Printed appointment confirmation
- A one-page project summary sheet (project name, location, land area, inventory, phase count, key permits)
9) Amendments, expansions, and phased development
After registration/LTS, changes often require DHSUD action:
- Expansion (additional land/inventory)
- Material plan revisions (road layout, lot yield, building configuration)
- Phasing adjustments
- Change in project name
- Change in developer entity (assignment/transfer)
Treat amendments as regulated events—unfiled changes can create mismatches between what was sold and what was approved, increasing buyer dispute exposure.
10) Common reasons applications get delayed (and how to avoid them)
Title/authority gaps Developer not the titled owner, and authority documents are incomplete or inconsistent.
Plan inconsistencies Lot/unit counts, land areas, and phase breakdowns differ across documents.
LGU permit mismatch Zoning/development permits don’t match the submitted plan set.
Environmental clearance mismatch ECC/CNC is missing, outdated, or not aligned with the correct scope.
Corporate signatory issues Wrong signatories, missing board authority, expired IDs, or unsigned pages.
Premature marketing Evidence of advertising/reservation-taking can trigger enforcement scrutiny and complicate processing.
11) Penalties and buyer remedies (why compliance is not optional)
Non-compliance can lead to:
- Cease-and-desist orders on selling/marketing
- Fines and administrative sanctions
- Suspension or cancellation of licenses/registrations
- Buyer complaints for refunds, damages, and enforcement of statutory protections
- Personal accountability risks for responsible officers and signatories in administrative proceedings
Because Philippine housing and subdivision regulation is buyer-protective, developers should treat compliance as both a legal requirement and a risk-management system.
12) Practical “do-this-first” roadmap for developers
If you want the shortest path from concept to compliant selling:
- Lock land control (clean title + clear authority to develop/sell)
- Secure LGU zoning + development permit pathway
- Obtain ECC/CNC early (or determine coverage early)
- Finalize technical plans with consistent data across all sheets
- Assemble corporate authority documents and signatories
- Prepare buyer-facing templates aligned with regulatory expectations
- File project registration → pursue LTS before any marketing push
- Only advertise what is approved—and keep a compliance file per phase
13) Quick FAQ
Can we accept “reservations” before LTS? That’s risky. Regulators often treat reservation-taking and public offering as selling activity. If you must do market testing, structure it carefully and avoid anything that looks like selling inventory to the public.
Do we need separate approvals for each phase? Often yes, depending on how the project is approved and licensed. Phasing is usually regulated; each phase should align with DHSUD approvals and inventory.
Do condos have special document requirements? Yes—condominium documentation (master deed, restrictions, condo corp arrangements, common areas) is typically central to the submission set.
What if we change plans midstream? Treat it as a regulated amendment. Selling what you did not get approved can trigger buyer claims and administrative action.
Closing note
This article gives a developer-focused, Philippine legal compliance overview of DHSUD appointment scheduling and the project registration/LTS pathway. Because DHSUD procedures and office-specific filing mechanics can evolve, the safest operational approach is to build your application around the stable legal requirements (land control, permits, plans, capacity) and then align the final packaging to the current DHSUD checklist used by the office with jurisdiction over your project site.