Quick answer

Verify the specific project, phase, tower, or subdivision section—not merely the developer’s company name—through the Department of Human Settlements and Urban Development (DHSUD). Before paying a reservation fee or signing anything:

Get a complete copy of the project’s Certificate of Registration and License to Sell.
Match its project name, developer or registered owner, location, phase or tower, License to Sell number, issue date, and covered lots or units against the offer.
Search the official DHSUD List of Projects with License to Sell.
Check the DHSUD list of projects with cease-and-desist orders.
Ask the DHSUD Regional Office that issued the license to confirm in writing that it is authentic, currently effective, and covers the exact property being sold.

An SEC registration, development permit, building permit, broker’s credentials, or Certificate of Registration is not a substitute for a project’s License to Sell.

Why the License to Sell matters

Under Section 5 of Presidential Decree No. 957, the owner or dealer of a registered subdivision or condominium project may not sell its lots or units without first obtaining a License to Sell. Although the law directs the developer to obtain the license within two weeks after project registration, that period is not permission to begin selling while the application is pending. Authority to sell begins only after the license is issued.

For this purpose, “sale” is broad. It includes an offer, solicitation, attempt to sell, option, reservation arrangement, contract to sell, exchange, or other disposition for valuable consideration. The Supreme Court has applied this definition to reservation agreements. There is no harmless “small reservation fee” threshold that allows a developer to sell while its license is still being processed. See G.R. No. 185491, July 11, 2012.

DHSUD now performs the regulatory functions formerly exercised by the Housing and Land Use Regulatory Board, or HLURB. This transfer followed Republic Act No. 11201. Older, genuine licenses may therefore bear the HLURB name; their present status should still be confirmed with DHSUD.

The license belongs to the project—not to the developer generally

A well-known developer may have dozens of licensed projects and one unlicensed new project. A license issued for Tower A does not automatically authorize the sale of Tower B. Likewise, a license for Phase 1, a particular parcel, or a stated number of units does not necessarily cover a later phase or expansion.

Treat statements such as “our company is DHSUD-accredited” or “our other projects already have licenses” as incomplete. Ask for the license covering the exact:

Project name used in the contract;
Phase, tower, cluster, or subdivision section;
Lot and block number, or condominium unit;
Barangay, city or municipality, and province;
Developer, owner, or dealer named as seller; and
Inventory currently being offered.

If the marketing name differs from the registered name, require a written explanation and any DHSUD-approved amendment or change-of-name document.

Step 1: Obtain the complete documents

Ask the seller for clear, complete copies of:

Certificate of Registration;
Regular, amended, temporary, or conditional License to Sell, whichever is being relied upon;
DHSUD-approved advertisement or advertisement approval;
Approved project completion date;
Approved development or condominium plan relevant to the property;
The draft reservation agreement and Contract to Sell; and
The developer’s written authority for the broker or salesperson handling the transaction.

Do not rely on a cropped photograph showing only a seal or license number. Obtain every page, including annexes, conditions, covered inventory, amendments, and extensions.

The Certificate of Registration and License to Sell perform different functions. Registration records the project; the License to Sell authorizes its sale. A development permit or approved plan likewise does not authorize selling by itself, as DHSUD explains in its official guidance.

Step 2: Search the official DHSUD list carefully

Open the official License to Sell list, which separates newer records from projects licensed in 2015 and earlier.

Search using several identifiers:

Exact License to Sell number;
Registered project name;
Marketing name and spelling variations;
Developer’s complete corporate name;
Previous developer or project name, if any; and
Project location.

Note the date or cutoff stated in the online list or downloadable file. A public list may not immediately reflect a recent issuance, amendment, suspension, revocation, or name change. Finding a project proves that a license bearing those details was recorded; it does not, by itself, establish that the license remains usable for the present offer.

Conversely, failure to find a project is a serious warning but not final proof that no license exists. Do not pay while the record remains unresolved. Ask the seller for the number and obtain direct DHSUD confirmation.

Step 3: Compare every material detail

Use the following checklist:

Detail	What must match
Project	Official name and any approved amended name
Seller	Developer, owner, or dealer named in the license and contract
Location	Barangay, city or municipality, and province
Coverage	Exact phase, tower, lots, units, or saleable area
License number	Complete number, including regional or temporary-license prefix
Issue date	Must precede the offer, reservation, or sale being made
Completion date	Compare with the promised turnover and development schedule
Conditions	Confirm that required conditions have been met
Status	No suspension, revocation, lapse, or cease-and-desist order
Advertisement	Project details and license number agree with the approved material

A license number copied from another project, phase, or developer does not authorize the transaction.

Step 4: Confirm the current status with DHSUD

Contact the DHSUD Regional Office covering the place where the project is located. Send a copy of the purported license and identify the exact unit or lot. Ask the office to confirm:

Whether the document and number are authentic;
Whether the regular, amended, temporary, or conditional license remains effective;
Whether it covers the stated phase, tower, lot, or unit;
Whether an amendment, extension, suspension, revocation, or cease-and-desist order exists;
The approved project completion date;
Whether the advertising material or advertisement approval is genuine; and
Whether any material condition limits the developer’s present authority to sell.

Request an email or written response and preserve it. If the issuing office cannot immediately confirm the record, do not treat the seller’s copy as conclusive. DHSUD’s Housing and Real Estate Development Regulation Bureau may also be reached through the contact information on its License to Sell FAQ.

Step 5: Check the advertisement

DHSUD’s buyer guidance instructs buyers to demand the project’s Certificate of Registration and License to Sell. Project advertisements should identify the project and location, License to Sell number, and advertisement approval number.

A missing number is a warning sign, but a printed number is not proof of validity. Compare it with the license and official record. Preserve screenshots of online listings, social-media posts, brochures, price lists, emails, chat messages, videos, and promises about amenities or completion. Under Section 19 of P.D. 957, representations in approved advertisements and sales materials may form part of the developer’s enforceable warranties.

Temporary or conditional licenses require extra care

If the seller presents a Temporary License to Sell or another specially conditioned authority, ask DHSUD to confirm its exact:

Date of effectivity and expiration;
Approved extension, if any;
Escrow or refund conditions;
Missing prerequisite permits or documents;
Covered inventory; and
Conversion to a regular License to Sell.

Do not assume that a temporary license is invalid merely because it is not a regular license. Equally, do not assume that it remains effective because the developer once received it. Its terms and current status control.

What a License to Sell does—and does not—prove

Before issuing a regular license under P.D. 957, the regulator examines the project’s registration documents and requires an approved performance bond intended to secure specified development obligations.

However, a License to Sell is not:

A government guarantee that the project will be completed on time;
Proof that construction currently matches the approved plan;
A guarantee that the particular contract is fair;
Proof that the land or unit is free from every mortgage, lien, adverse claim, or pending case;
Proof that the salesperson is properly authorized;
A guarantee of bank or Pag-IBIG financing;
An investment endorsement; or
A substitute for title, zoning, building-permit, tax, and contract due diligence.

Continue checking the land title, annotated mortgages or adverse claims, approved plans, actual site condition, seller’s authority, and contract terms. If the property is mortgaged, review whether the documents contain the required arrangements for releasing the purchased lot or unit upon full payment.

When a License to Sell may not be required

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

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 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 exceptions are fact-specific. Ask for documents establishing the partition, prior purchase, mortgage, foreclosure, or debt being relied upon. A developer cannot avoid the law simply by calling a project a “private sharing,” “co-ownership,” “farm lot,” “members-only investment,” or “resale” when the transaction is actually a subdivision or project sale.

If a seller claims an exemption not clearly covered by Section 7, obtain written DHSUD confirmation or legal advice before paying.

Red flags that should stop the transaction

Pause immediately if:

The license is “for release,” “pending,” or expected after reservations are collected;
The seller refuses to provide a complete copy;
The license belongs to a different phase, tower, location, or company;
The project cannot be found and DHSUD will not confirm it;
The document appears altered, cropped, blurred, or inconsistent;
A cease-and-desist order, suspension, revocation, or expired temporary authority appears;
The contract names a different payee from the licensed developer or owner;
Payment is requested through a salesperson’s personal account;
The seller says an SEC certificate, mayor’s permit, development permit, or building permit is “equivalent” to an LTS;
The advertisement lacks required project or license details;
Promised amenities or turnover dates do not match the approved documents; or
You are pressured to pay before independent verification.

Evidence to preserve

Keep original or backed-up copies of:

The purported license and Certificate of Registration;
DHSUD search results and the list’s stated cutoff date;
Written DHSUD confirmations;
Reservation agreement, Contract to Sell, and payment schedule;
Official receipts, bank records, deposit slips, and payment instructions;
Advertisements, brochures, price quotations, renderings, and site plans;
Emails, chat logs, text messages, and recorded representations lawfully obtained;
The salesperson’s name, registration details, and authority;
Photographs and videos of the project site; and
Written demands, courier receipts, email delivery records, and responses.

Record when each offer, representation, signature, and payment occurred. The timing may determine whether the license already existed and what remedies are available.

If you already paid and discover a problem

Do not assume that the absence of a license automatically cancels the contract or entitles you to an immediate refund. The Supreme Court has held that P.D. 957 penalizes selling without the required registration and license but does not automatically make an otherwise valid Contract to Sell void. See Co Chien v. Sta. Lucia Realty, G.R. No. 162090, January 31, 2007 and Moldex Realty v. Sabio, G.R. No. 176289, April 8, 2013.

Take these steps instead:

Obtain written DHSUD confirmation of the project’s status.
Preserve all contracts, advertisements, communications, and payment proof.
Ask the developer in writing for its legal and documentary basis for selling.
State what you want—such as verified compliance, suspension of further collection while the matter is clarified, performance of obligations, or an appropriate refund—but do not concede or waive rights.
Avoid unilaterally stopping installment payments or signing a cancellation, quitclaim, waiver, replacement contract, or refund computation without advice. The consequences depend on the contract, payment history, developer’s violations, and applicable buyer-protection laws.

DHSUD handles regulatory verification, monitoring, and possible administrative action. A buyer seeking a binding remedy in a developer dispute may need to file with the Human Settlements Adjudication Commission, whose adjudicatory authority is established by R.A. No. 11201. Consult the HSAC directory and its current procedural resources before filing.

When legal help is urgent

Speak promptly with a Philippine real-estate lawyer if:

A cancellation, forfeiture, turnover, or payment deadline is approaching;
The developer threatens to resell your unit;
A mortgage foreclosure or adverse title claim has surfaced;
You are being asked to sign a waiver or revised contract;
DHSUD reports that the license is fake, suspended, revoked, lapsed, or unrelated to your property;
Substantial payments have already been made;
Several buyers appear to have been sold the same property; or
Fraud or falsification is suspected.

Different claims can have different prescriptive periods and procedural requirements. Do not wait for negotiations to continue indefinitely when a deadline may be running.

Common mistakes

Checking only the developer’s reputation or SEC registration;
Treating one licensed project as proof that every project is licensed;
Searching only the marketing name;
Ignoring the phase, tower, or unit coverage;
Relying solely on an old online entry;
Failing to check cease-and-desist, suspension, or revocation status;
Paying because the license is “almost approved”;
Believing that a building or development permit authorizes sales;
Assuming a valid LTS guarantees completion or clean title; and
Cancelling or stopping payments without first assessing the legal consequences.

FAQ

Is a Certificate of Registration enough?

No. Project registration and authority to sell are separate. The developer must have the applicable License to Sell before making the covered offer or sale.

Does SEC or DTI registration prove that the project may be sold?

No. It may confirm that a business or company is registered, but it does not authorize the sale of a particular real-estate project.

Can a developer accept a reservation fee while its application is pending?

For a covered project, the broad statutory meaning of “sale” includes offers, solicitations, attempts to sell, options, and reservation-type arrangements. “Processing” is not a substitute for an issued license.

The project appears on the DHSUD list. Is that enough?

No. Match the exact scope and ask the issuing Regional Office whether the license remains effective and whether any amendment, suspension, revocation, or cease-and-desist order exists.

The project is missing from the online list. Is it automatically illegal?

Not necessarily; the published record may have a cutoff or the project may use another registered name. But do not proceed until DHSUD directly confirms a valid license or a documented exemption.

Does the license cover every phase or tower?

Not automatically. Read the license, annexes, and amendments. Confirm the specific phase, tower, lot, or unit with DHSUD.

Can an old HLURB license still be genuine?

Yes. HLURB issued licenses before its regulatory functions were transferred to DHSUD. DHSUD should confirm the old license’s present status and coverage.

Does selling without a license automatically void my contract?

No. Supreme Court decisions hold that the absence of a license does not, by itself, automatically void an otherwise valid contract. The violation may still support regulatory sanctions or other fact-dependent remedies.

Is a resale always exempt?

No. P.D. 957 expressly exempts particular transactions, including specified resales of subdivision lots. Verify the chain of ownership and the facts supporting the claimed exemption.

Does a valid LTS mean I can safely buy?

It is an essential regulatory check, not complete due diligence. Verify the title, mortgages, approved plans, seller’s authority, contract terms, site condition, and actual project progress as well.

This article provides general Philippine legal information, not advice for a particular transaction or dispute. Laws, agency records, license conditions, and procedures may change, and outcomes depend on the documents and facts. Official sources were checked as of 6 August 2026.