Quick answer

Before paying a reservation fee or signing anything, verify the project’s License to Sell directly with the Department of Human Settlements and Urban Development (DHSUD). A developer does not have one blanket license covering every property it sells. The license must match the specific project—and, where applicable, the subdivision phase, tower, or other approved coverage being offered to you.

Ask for a complete copy of the Certificate of Registration and License to Sell, cross-check the details against the DHSUD List of Projects with License to Sell, and then obtain confirmation from the DHSUD Regional Office where the project is located. Confirm that the license is authentic, covers the property being offered, and has not been suspended, revoked, cancelled, or allowed to lapse.

A Certificate of Registration, development permit, building permit, mayor’s permit, SEC registration, or pending application for a license is not a substitute for a License to Sell.

What the License to Sell covers

For residential subdivision and condominium projects offered to the public, Presidential Decree No. 957 generally requires the owner or dealer to register the project and obtain a License to Sell before selling it.

The law uses a broad definition of “sell.” It includes a contract to sell, an offer or attempt to sell, an option, solicitation, and advertising intended to dispose of a lot or unit for value. Whether a particular reservation arrangement is already a sale can still depend on its wording and surrounding facts, so buyers should not rely on labels such as “reservation only” or “pre-selling registration.”

The license belongs to the named project, not merely to the developer as a company. A license for one subdivision, condominium, or phase does not automatically authorize sales in another project or phase.

How to verify the license step by step

1. Obtain the exact project details

Ask the developer, broker, or salesperson for:

The full registered project name;
Exact location, including city or municipality and province;
Phase, block, lot, tower, building, and unit identifiers, if applicable;
Full legal names of the project owner, developer, and seller;
License to Sell number and issuance date;
Certificate of Registration number and issuance date;
Whether the document is a regular, provisional, or temporary License to Sell;
Approved target completion date and any approved extension;
Advertisement approval number; and
A complete, readable copy of the license, including its conditions, annexes, schedules, and covered lots or units.

Do not settle for a cropped photograph, a number typed into a brochure, or a salesperson’s statement that the document is “being processed.”

2. Search the DHSUD project list

Use the official DHSUD license list, which separates projects licensed from 2016 onward from older records.

Search using several identifiers:

Project name and possible spelling variations;
Developer or owner’s corporate name;
License number;
Province, city, or municipality; and
Phase or tower name.

Finding the developer’s name is not enough. The record must correspond to the particular project being offered.

An online search result is a useful first check, but it should not be the only check when substantial money is involved. A project’s status may also be affected by a later suspension, revocation, amendment, change of ownership, extension, or other order.

3. Confirm the status with the correct DHSUD Regional Office

Contact the DHSUD Regional Office that has jurisdiction over the project’s location. Ask for written confirmation of the following:

Please confirm whether License to Sell No. ___, reportedly issued to ___ for ___ located at ___, is authentic and presently effective; whether it covers Phase/Tower/Block/Lot/Unit ___; whether it is regular, provisional, or temporary; and whether it has been suspended, revoked, cancelled, amended, or allowed to lapse. Please also confirm the approved target completion date and any approved extension.

The project registers are legally open to public inspection subject to DHSUD’s reasonable rules. If the transaction is significant or the documents conflict, ask whether a certified copy or formal certification of status is available.

If a temporary or provisional license is presented, verify its specific conditions, period of effectivity, extension, and conversion to a regular license directly with DHSUD. Do not assume that an old temporary license remains effective.

4. Match every material detail

Detail	What should match
Project name	License, DHSUD record, advertisement, reservation form, and contract
Location	City or municipality, province, and project site
Owner or developer	Entity named in the license and the transaction documents
License number	DHSUD record and the complete license presented to you
Project coverage	Correct subdivision phase, tower, building, or approved inventory
Seller	Licensed owner, dealer, or properly authorized representative
Completion commitment	License, approved work program, contract, and approved extensions
Advertisement	Project name, location, License to Sell number, and advertisement approval information

A discrepancy is not always fraud—for example, a documented change of ownership or authorized joint venture may explain different names—but it must be resolved with official records before payment.

5. Inspect the advertisement and sales documents

DHSUD guidance states that project advertisements should identify the project and location and show the License to Sell number and advertisement approval number.

Treat these as warning signs:

“License to Sell pending” or “for follow-up”;
A license belonging to another project or phase;
A number that does not appear in DHSUD records;
A license issued to an unrelated company with no documented connection;
Different project names across the ad, license, and contract;
Refusal to provide the full license;
Pressure to pay immediately because the license “will follow”;
Payment instructions using an agent’s or employee’s personal account; or
Claims that a development permit or building permit already authorizes sales.

6. Verify matters the license does not settle

A License to Sell is an important regulatory safeguard, but it is not a government guarantee that the investment is risk-free or that the developer will perform every promise.

Separately verify:

The developer or seller’s authority to contract;
The latest certified true copy of the relevant land title;
Mortgages, liens, adverse claims, restrictions, and pending annotations;
Whether the person signing for the developer is authorized;
The broker’s professional license and the salesperson’s authority;
The approved plans, unit specifications, amenities, and completion schedule;
The identity of the account receiving your payment; and
The terms on cancellation, turnover, financing, charges, and title delivery.

DHSUD rules can permit licensing in certain cases involving annotated liens or encumbrances subject to safeguards. Therefore, the existence of a License to Sell should not replace an independent title examination. Certified true copies of OCTs, TCTs, and CCTs may be requested through the Land Registration Authority’s eSerbisyo portal.

What the license proves—and what it does not

Under P.D. No. 957, a License to Sell is issued after project registration and regulatory examination of the required statements and supporting documents. The law also generally requires an approved performance bond intended to help secure the project’s development and compliance obligations.

DHSUD explains that licensed projects have approved plans that comply with applicable minimum standards concerning matters such as lot or floor areas, open spaces, roads, sidewalks, drainage, and other facilities.

The license does not, by itself, prove that:

Every future phase or tower is covered;
The license remains unaffected by later regulatory action;
The particular seller or agent is authorized;
The specific title is free from all liens or disputes;
Construction is currently on schedule;
Every verbal promise is part of the approved project;
Financing has been approved;
The developer cannot later default; or
You will automatically receive a refund if a dispute arises.

Promises in brochures and other advertisements may form part of the developer’s enforceable sales warranties under P.D. No. 957. Preserve copies of the materials that influenced your decision.

General rule and statutory exceptions

The general rule is that a covered subdivision or condominium project must be registered and licensed before its lots or units are sold to the public.

Section 7 of P.D. No. 957 identifies transactions for which a License to Sell and performance bond are not required:

A subdivision lot sold because of a partition among co-owners or co-heirs;
A subdivision lot resold or transferred by its original purchaser, including subsequent resales; and
A subdivision lot or condominium unit sold by or for a mortgagee in the ordinary course of business to liquidate a bona fide debt.

These exceptions apply to the qualifying transaction; they are not a blanket excuse for a developer to market an unlicensed project as a collection of “resales.” Verify the seller’s title or contractual rights, the chain of transfers, and the factual basis for the claimed exception.

Different rules may apply to transactions outside the ordinary residential subdivision or condominium setting, including certain commercial developments, memorial parks, columbaria, raw land, or isolated private sales. Ask DHSUD to identify the applicable regulatory regime instead of accepting the seller’s interpretation.

If the project is not found or the license cannot be confirmed

Do not pay while the discrepancy remains unresolved. Take these steps:

Ask the seller for the complete license and written explanation.
Send a written validation request to the DHSUD Regional Office.
Ask DHSUD whether the project is unlicensed, listed under another approved name, covered by an older record, or subject to a suspension or other order.
Preserve the advertisement and the seller’s representations.
Require any explanation about a different owner, project name, phase, or license number to be supported by DHSUD-issued documents.
If the seller continues advertising or collecting payments without confirmed authority, report the matter to the DHSUD Regional Office.

Absence from an online list alone should not be treated as conclusive proof of illegality, particularly where names or old records may differ. Written confirmation from DHSUD is the safer basis for action.

If you have already paid

Act promptly, but do not assume that the absence of a license automatically cancels your contract.

The Supreme Court has ruled that violating the licensing requirement does not, by itself, automatically make an otherwise valid contract to sell void. DHSUD likewise states that the mere lack of a License to Sell is not, standing alone, an automatic ground for cancellation. Other violations—such as failure to develop, misrepresentation, breach of contract, or failure to meet approved obligations—may support separate remedies depending on the evidence.

Accordingly:

Do not unilaterally stop installments solely because an online search produced no result;
Request written confirmation from DHSUD;
Send the developer a written demand for an explanation and copies of the official records;
Have the contract and payment history reviewed before cancelling or withholding payment;
Report the regulatory violation to DHSUD; and
If you seek a refund, specific performance, damages, or another adjudicated remedy, consult the appropriate Human Settlements Adjudication Commission Regional Adjudication Branch.

DHSUD regulates projects and may investigate licensing violations. The Human Settlements Adjudication Commission (HSAC) is a separate quasi-judicial agency that hears covered buyer-developer disputes, including qualifying claims for refunds and enforcement of contractual or statutory obligations. Consult the HSAC directory and its current resources and procedural rules before filing. The 2025 Revised Rules of Procedure took effect on July 15, 2025, so older filing guides may no longer be complete.

There is no single safe deadline for every buyer’s claim. Prescription, contractual notice periods, payment deadlines, and procedural periods depend on the remedy and facts. Seek advice promptly rather than waiting for negotiations to fail.

Evidence to preserve

Keep original files whenever possible, not only screenshots forwarded by an agent:

Complete advertisements, brochures, price lists, videos, and social-media posts;
URLs, account names, and dated screenshots;
Copies of the Certificate of Registration and License to Sell;
DHSUD search results and written agency confirmations;
Reservation agreements, contracts to sell, deeds, disclosure forms, and payment schedules;
Official receipts, bank records, payment instructions, and account-holder details;
Emails, text messages, chat histories, and recorded representations lawfully obtained;
Approved plans, floor plans, specifications, and promised amenities;
Title copies and Registry of Deeds records;
Names, license details, identification, and authority documents of brokers and salespersons;
Dated photographs and videos of the project site; and
Demand letters, delivery receipts, acknowledgments, and responses.

Avoid editing the originals. Store backup copies in more than one secure location.

Common mistakes to avoid

Checking only whether the developer is a large or well-known company;
Treating SEC registration as permission to sell a particular project;
Verifying the project name but ignoring the phase or tower;
Accepting a Certificate of Registration without a License to Sell;
Treating a development permit or building permit as equivalent to a License to Sell;
Relying solely on a salesperson’s screenshot;
Assuming an old license remains unaffected by later orders;
Paying a reservation fee before verifying the license;
Sending money to a personal account;
Ignoring liens because the project has a license;
Relying on verbal promises not reflected in approved documents or advertising; and
Cancelling payments without first understanding the contractual and legal consequences.

When legal help is urgent

Consult a Philippine lawyer promptly if:

You have received a cancellation, rescission, forfeiture, or collection notice;
A contractual payment or response deadline is approaching;
DHSUD reports that the license is suspended, revoked, cancelled, or lapsed;
The developer refuses to disclose the title or licensing documents;
The property appears to have been sold twice;
A bank or another claimant asserts a mortgage or ownership right;
Documents or government records appear forged or altered;
Payments were diverted to personal or unrelated accounts;
The developer has stopped operating or construction has ceased;
You are being pressured to sign a waiver, quitclaim, substitution, or revised contract; or
A substantial payment may become difficult to recover.

Frequently asked questions

Is the developer’s SEC registration the same as a License to Sell?

No. SEC registration generally establishes or records the corporate entity. It does not authorize that company to sell lots or units in a particular development. The project must have the required DHSUD License to Sell.

Is a Certificate of Registration enough?

No. P.D. No. 957 expressly distinguishes project registration from authority to sell. The owner or dealer must obtain the License to Sell before selling the registered project.

Does a development permit or building permit authorize pre-selling?

No. Those permits serve different regulatory purposes. DHSUD specifically states that approval of development plans and issuance of a development permit do not, by themselves, authorize sales.

Does one license cover all projects of the developer?

No. Match the license to the named project and its approved coverage. Large developments may have separately regulated phases or components.

What if the project is advertised under a brand name different from its registered name?

Ask for written proof connecting the marketing name to the registered project, then confirm the connection with DHSUD. Do not rely on the salesperson’s explanation alone.

Is a private resale covered by the licensing requirement?

A resale or transfer by the original purchaser, and subsequent resales of that subdivision lot, are among the statutory exceptions. The buyer must still verify the seller’s ownership or contractual rights, title, taxes, liens, authority to transfer, and chain of documents.

Does an unlicensed sale automatically entitle the buyer to cancel and recover everything paid?

No. The absence of a license is a serious regulatory issue, but the Supreme Court has held that it does not automatically void an otherwise valid contract. Cancellation, refund, damages, or continued enforcement depends on the contract, the developer’s other violations, the buyer’s conduct, and the remedy properly pursued.

Is a licensed project automatically safe?

No. Licensing is an essential safeguard, not a substitute for checking the title, contract, seller’s authority, project status, financing, construction progress, and encumbrances.

Key authorities and official resources

This article provides general legal information, not advice for a particular transaction or dispute. The result may change based on the project documents, contract, title, payment history, and agency orders. Sources and procedures were checked as of August 5, 2026.