Quick answer
Before paying a reservation fee or signing anything, obtain the exact Certificate of Registration (CR) and License to Sell (LS) for the project, then verify them with the Department of Human Settlements and Urban Development (DHSUD) Regional Office where the property is located.
Start with the DHSUD’s online List of Projects with License to Sell, but do not rely on a salesperson’s screenshot or the online listing alone. Confirm that the license is genuine, currently effective, and covers the exact project, phase, tower, lot, or unit being offered. Also check the DHSUD’s List of Projects with Cease and Desist Orders.
A development permit, building permit, business permit, SEC registration, or claim that the license is “under process” does not substitute for a License to Sell.
What a License to Sell is
Under Sections 4 and 5 of Presidential Decree No. 957, a subdivision or condominium project must first be registered, after which its owner or dealer must obtain a License to Sell before offering or selling lots or units to the public.
The law defines a “sale” broadly. It includes not only a completed deed of sale, but also a contract to sell, option, exchange, solicitation, advertisement, offer, or attempt to dispose of a lot or condominium unit for valuable consideration. A seller therefore cannot avoid the requirement by calling the transaction a “reservation,” “priority listing,” or “expression of interest.”
A License to Sell is:
- Issued for a particular project or licensed portion of it;
- Different from the project’s Certificate of Registration;
- Different from the developer’s corporate registration or local permits;
- Issued only after regulatory requirements are met, including an approved performance bond under Section 6 of P.D. 957; and
- Subject to suspension, revocation, cancellation, amendment, or a cease and desist order.
Older licenses may bear the name of the former Housing and Land Use Regulatory Board or HLURB. That alone does not make them invalid. DHSUD assumed the regulatory functions and relevant records of the HLURB under Republic Act No. 11201, so an old license should be authenticated through DHSUD.
How to verify the license step by step
1. Identify the exact property being offered
Before searching any database, obtain the following in writing:
- Complete project name;
- Marketing name and legal or registered project name, if different;
- Exact address, city or municipality, and province;
- Phase, block, tower, building, or cluster;
- Lot or unit number;
- Name of the registered project owner;
- Name of the developer;
- Name of the entity that will receive payment; and
- License to Sell number and date of issuance.
Do not search only by the developer’s brand. A large developer may have licensed projects and unlicensed phases at the same time. Likewise, a license for one tower, phase, or location does not automatically cover another.
2. Ask for both the CR and LS
Request a clear, complete copy—not a cropped photograph—of the:
- Certificate of Registration; and
- License to Sell.
Check whether the documents identify the same project, location, owner, and developer shown in the advertisement and proposed contract. Examine all pages, annexes, amendments, and annotations.
A salesperson’s ID, a development permit, or a photocopy of another project’s license is not sufficient.
3. Search the DHSUD project list
Open the DHSUD’s List of Projects with License to Sell and choose the region where the property is physically located. Search using several identifiers:
- Project name;
- License number;
- Developer or owner name; and
- City, municipality, or province.
Compare the result character by character with the documents supplied by the seller. Watch for differences involving corporate suffixes, project phases, tower numbers, locations, and license numbers.
Finding a similar project is not enough. The offered property must fall within the actual licensed coverage.
4. Check for regulatory orders
Search the DHSUD’s List of Projects with Cease and Desist Orders. Then ask the Regional Office whether the project or license is affected by any:
- Suspension;
- Revocation or cancellation;
- Cease and desist order;
- Amendment or annotation;
- Approved extension of the completion period; or
- Other order restricting sales.
An authentic license that was issued in the past may no longer establish that sales are presently authorized.
5. Confirm directly with the DHSUD Regional Office
DHSUD itself advises prospective buyers to validate the CR and LS with the issuing Regional Office. Use the official DHSUD Regional Offices directory rather than contact details provided solely by the salesperson.
Give the Regional Office:
- A copy of the CR and LS;
- License number and issuance date;
- Exact project and phase or tower;
- Property location;
- Owner and developer names; and
- Lot or unit being offered.
Ask for written confirmation of:
- Whether the CR and LS are authentic;
- The owner, developer, project, location, and phase they cover;
- The license’s current regulatory status;
- Whether any suspension, revocation, cancellation, cease and desist order, or amendment is on record;
- The approved target completion date and any authorized extension; and
- Whether the specific phase, tower, or development represented to you is within the licensed project.
For a major purchase, financing application, dispute, or suspected falsification, consider requesting a formal certification or certified copy using DHSUD’s Request for Certification form.
Keep the email, acknowledgment, reference number, certification, and attachments. A verbal assurance from a government employee or sales representative is harder to prove later.
6. Match the license to the transaction documents
Before signing, compare the verified DHSUD information with the reservation agreement, contract to sell, payment instructions, and official receipts.
The following should be consistent:
| Item | What to verify |
|---|---|
| Project | Exact registered name, not merely a similar marketing name |
| Coverage | Correct phase, tower, building, cluster, or subdivision section |
| Location | Same city or municipality and project site |
| Owner/developer | Same legal entities or a documented, authorized relationship |
| Seller | Authorized to sell for the licensed owner or developer |
| Payment recipient | The contracting entity or its formally authorized collection agent |
| Property | Lot or unit appears within the represented project and approved plan |
| Completion | Contract and advertising do not contradict the approved completion information |
| Promised facilities | Consistent with approved plans, brochures, and written warranties |
If the proposed contract names a different seller, owner, project, or location, stop and demand documentary proof of the relationship and authority.
7. Verify the people and company separately
A valid project license does not prove that every person claiming to represent the developer is authorized.
Check the broker through the PRC’s Online Verification of License. A salesperson should be properly accredited and working under a licensed real estate broker. DHSUD also maintains a list of registered real estate brokers and salespersons engaged in project selling.
For a corporate developer or seller, review its official SEC records through SEC eSEARCH or another official SEC service. Confirm the exact corporate name, registration number, status, address, and persons authorized to sign. SEC registration proves corporate existence; it does not replace a DHSUD License to Sell.
Call the developer through contact details independently obtained from its official website or office—not merely the number in a social-media advertisement—to confirm the salesperson’s authority and payment instructions.
What the license does—and does not—prove
An authentic and effective License to Sell is an important regulatory safeguard. It indicates that DHSUD authorized sales for the project or licensed portion after evaluating the required registration documents and performance bond.
It does not, by itself, prove that:
- The particular lot or unit remains available;
- The person dealing with you is an authorized representative;
- The title is presently free from every lien, adverse claim, or later transaction;
- Construction is on schedule;
- Every advertised amenity will be delivered exactly as described;
- The developer is currently financially healthy;
- Your contract is fair and complete; or
- The investment is profitable or risk-free.
Obtain a recent certified copy of the relevant title from the Registry of Deeds, review annotations and mortgages, inspect the site, compare the approved plan with the property being offered, and have material contracts reviewed before making a substantial payment.
Red flags that should stop the transaction
Pause the purchase if:
- The seller refuses to provide the CR or LS;
- The license number cannot be found or confirmed;
- The license is for another project, city, phase, or tower;
- The advertisement omits the license number or uses an unreadable copy;
- The document contains altered text, inconsistent fonts, missing pages, or mismatched names;
- The seller says the license is “for release,” “pending,” or unnecessary because construction has started;
- Only a development permit, building permit, mayor’s permit, or SEC certificate is shown;
- You are pressured to pay before DHSUD replies;
- Payment is requested through a personal account unrelated to the contracting entity;
- The official receipt will be issued by a different company without a clear written explanation;
- The seller discourages independent contact with DHSUD or the developer;
- The promised phase or tower does not appear in the licensed coverage;
- DHSUD records show a suspension, cancellation, or cease and desist order; or
- The contract attempts to waive protections under P.D. 957. Section 33 makes contractual waivers of compliance with the decree void.
The physical existence of a showroom, model unit, sales office, or partially completed building is not proof of authority to sell.
Limited statutory exceptions
Section 7 of P.D. 957 states that a License to Sell and performance bond are not required for:
- The sale of a subdivision lot resulting from partition among co-owners and co-heirs;
- The sale or transfer of a subdivision lot by its original purchaser, and subsequent sales of that same lot; and
- The 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 specifically worded. A developer should not casually characterize an ordinary project sale as a “private resale” or “mortgagee sale.” If an exception is claimed, ask for the title history, deed or partition documents, mortgage and foreclosure records where applicable, proof of the seller’s capacity, and written confirmation from DHSUD or independent counsel.
This discussion primarily concerns subdivision and condominium sales governed by P.D. 957. Memorial parks, columbaria, and other regulated developments may be subject to additional or different licensing rules.
If the project cannot be verified
Do not pay additional amounts or sign replacement documents merely to “hold” the property.
Send the seller a written request for the CR, LS, authority to sell, approved plan, and explanation of every discrepancy. State that you are withholding further action pending DHSUD confirmation. Avoid accusing individuals publicly before the facts are established.
Report a suspected unlicensed project to the DHSUD Regional Office where the project is located. DHSUD handles licensing and regulatory enforcement. If you need a refund, specific performance, damages, or resolution of a buyer-developer dispute, the adjudicatory forum may be the appropriate Regional Adjudication Branch of the Human Settlements Adjudication Commission (HSAC). Consult the HSAC directory and obtain legal advice on the proper parties, claims, evidence, venue, and deadlines.
Do not assume that the absence of a license automatically cancels your contract or guarantees a full refund. In Spouses Co Chien v. Sta. Lucia Realty and Development, Inc. and Moldex Realty, Inc. v. Flora, the Supreme Court held that selling without the required CR and LS violates P.D. 957, but the absence of those documents does not automatically make an otherwise valid contract void. A buyer’s remedy depends on the contract, payments, developer’s conduct, project status, applicable buyer-protection laws, and relief properly claimed.
Evidence to preserve
Keep original or backed-up copies of:
- Advertisements, brochures, price lists, and promises about amenities;
- Screenshots showing URLs, account names, and dates;
- Emails, text messages, chat histories, and call logs;
- CR, LS, development permits, plans, and claimed amendments;
- Reservation agreements, contracts, disclosure forms, and addenda;
- Official receipts, invoices, bank records, and payment instructions;
- Salesperson, broker, and company details;
- Proof of the representative’s authority;
- Site photographs and dated construction updates;
- Title copies and Registry of Deeds certifications;
- DHSUD searches, correspondence, certifications, and reference numbers;
- Notices of delay, cancellation, default, turnover, or additional charges; and
- Written demands and proof that they were received.
Preserve original files rather than edited screenshots whenever possible. Do not secretly record private conversations without obtaining legal advice, because Philippine law restricts unauthorized recording of private communications.
Common mistakes
Checking only the developer’s reputation
A known developer can operate many separate projects and phases. Licensing must be checked for the exact property being offered.
Treating a license number in an advertisement as verified
Numbers can be mistyped, copied from another project, altered, or associated with a restricted license. Confirm the record with DHSUD.
Confusing registration with authority to sell
A Certificate of Registration is not the License to Sell. Both should be requested and matched.
Assuming permits are interchangeable
A development permit authorizes development subject to its terms. It does not by itself authorize public sales. Building, occupancy, business, environmental, and local permits serve different purposes.
Accepting “license pending”
P.D. 957 requires the License to Sell before the covered offer or sale. Processing an application is not equivalent to issuance.
Ignoring the phase or tower
A license may cover only part of a larger branded development. Verify the precise licensed coverage.
Paying an individual
Even a genuine salesperson should not redirect payments to an unexplained personal account. Confirm collection authority directly with the contracting company.
Assuming a valid license resolves title issues
Licensing and title due diligence are related but separate. Obtain a current certified title and examine all annotations.
When legal help is urgent
Seek prompt advice from a Philippine lawyer if:
- You have already paid a substantial amount for an apparently unlicensed project;
- DHSUD reports that the license is suspended, revoked, cancelled, or unrelated to your property;
- You receive a cancellation, rescission, default, foreclosure, turnover, or demand notice;
- The same lot or unit appears to have been sold to another person;
- The title shows an unexpected mortgage, adverse claim, levy, or ownership mismatch;
- The developer is insolvent, has stopped construction, or cannot be contacted;
- You are being asked to sign a waiver, quitclaim, restructuring agreement, or substituted contract;
- A refund offer requires surrendering rights you do not fully understand;
- Documents appear forged or altered; or
- A filing, appeal, payment, or contractual deadline is approaching.
DHSUD may provide regulatory assistance, while HSAC adjudicates covered disputes. Suspected document falsification, estafa, identity theft, or other crimes may also require referral to appropriate law-enforcement or prosecutorial authorities. The correct route depends on the evidence and relief sought.
Frequently asked questions
Is a License to Sell issued to the developer generally?
No. It is tied to a specific registered project or licensed portion. The developer’s license for Project A does not authorize sales in Project B.
May a developer collect a reservation fee while the license is pending?
Calling a payment a reservation fee does not necessarily take it outside P.D. 957. The law broadly includes contracts, options, solicitations, offers, and attempts to sell. Do not pay solely on a promise that the license will be issued later.
Is the DHSUD online list enough?
It is a useful first check, but DHSUD’s Regional Office should validate the document, coverage, and current status—especially before a significant payment.
Does an old HLURB license remain acceptable?
It may. DHSUD succeeded to the relevant HLURB regulatory functions and records. Have the old license authenticated and its present status confirmed by DHSUD.
Does a valid License to Sell guarantee project completion?
No. The license and required performance bond provide regulatory safeguards, but they do not eliminate construction, financial, contractual, title, or fraud risks.
Does the lack of a license automatically void the sale?
No. Supreme Court rulings establish that absence of the required CR or LS does not automatically invalidate an otherwise valid contract. It may still constitute a regulatory or penal violation, and the buyer may have remedies depending on the facts.
Is a private resale always exempt?
No. The statutory exemptions are limited. For example, Section 7 expressly covers the resale of a subdivision lot by its original purchaser and subsequent sales of that lot. Verify the title history and the claimed exception rather than relying on the seller’s label.
Can a salesperson use another project’s license?
No. The license must cover the property actually being advertised or sold. A license belonging to another phase, tower, project, or location is not a substitute.
Official sources
- Presidential Decree No. 957—Subdivision and Condominium Buyers’ Protective Decree
- Republic Act No. 11201—Department of Human Settlements and Urban Development Act
- DHSUD List of Projects with License to Sell
- DHSUD List of Projects with Cease and Desist Orders
- DHSUD Regional Offices
- DHSUD Buyer’s Awareness, Rights, and General Remedies
- DHSUD Requirement of License to Sell FAQs
- PRC Online Verification of License
- HSAC Directory
This article provides general legal information, not legal advice for a particular transaction or dispute. Property coverage, licensing status, contractual remedies, jurisdiction, and deadlines can depend on documents and specific facts. Official sources and current procedures were checked as of 6 August 2026.