Quick answer

Before paying a reservation fee or signing anything, verify that the specific subdivision, condominium project, tower, or phase being offered has a current License to Sell issued by the Department of Human Settlements and Urban Development (DHSUD).

Do not rely only on the developer’s reputation, business registration, development permit, model unit, or a salesperson’s assurance. Ask for the project’s Certificate of Registration and License to Sell, match every material detail against the offer, check the project on the DHSUD’s official lists, and confirm the license directly with the DHSUD Regional Office that issued it.

A License to Sell is project-specific. A developer may have a license for one project, tower, or phase but not for another.

Why the License to Sell matters

Under Sections 4 and 5 of Presidential Decree No. 957, a subdivision or condominium project must be registered, and its owner or dealer generally may not sell lots or units in the project without first obtaining a License to Sell.

The law defines “sell” broadly. It includes a contract to sell, an offer or attempt to sell, solicitation, an option, an exchange, and advertising or otherwise offering property for valuable consideration. A developer should therefore not treat a pending application, future license, or development permit as though it were already authority to market and sell the project.

DHSUD expressly states that an approved development plan and development permit do not by themselves authorize selling. The project must have the required License to Sell or another currently valid DHSUD authorization applicable to it.

A License to Sell indicates that DHSUD reviewed the project’s registration documents and authorized its sale subject to the law and the terms of the license. It does not eliminate the need to examine the title, contract, financing, construction status, promised amenities, and the developer’s actual performance.

How to verify the license step by step

1. Ask for a clear copy of the official documents

Request copies of:

The project’s Certificate of Registration;
The License to Sell, including all pages, annexes, conditions, and annotations;
Any Temporary License to Sell or Conditional License to Sell if that is what the seller claims to hold;
The approved subdivision or condominium plan covering the property;
Any amendment, alteration, extension, or supplemental approval affecting the project; and
The seller’s written authority to represent the project.

Do not accept only a cropped photograph, brochure, social-media graphic, or typed license number. The copy should show the issuing DHSUD Regional Office, document number, project name, owner or developer, location, scope, date of issuance, completion period, and any conditions or limitations.

2. Match the license to the exact property being offered

Compare the document with the reservation form, quotation, advertisement, and draft contract. Confirm that the following are identical or properly connected:

Project name;
Registered owner and developer;
Province, city or municipality, and project address;
Subdivision phase, block, tower, building, or other licensed component;
Lot or unit classification;
License number and issuing Regional Office; and
Authorized project scope and applicable completion period.

Marketing names can differ from registered project names. If they do, require a written explanation and documents establishing that the advertised property is within the licensed project.

Be especially careful with developments sold by phase. A license for Phase 1 does not necessarily authorize sales in Phase 2. Likewise, a license covering one condominium tower should not be assumed to cover another tower in the same complex.

3. Search the official DHSUD list

Check the DHSUD List of Projects with License to Sell. Search using more than one detail, such as:

The registered project name;
The developer’s legal name;
The city or municipality; and
The License to Sell number.

Save a dated screenshot or PDF of the result. An online match is useful but should not be the final step. Lists can be updated, project names can be similar, and a license may later become subject to an order or condition.

If the project does not appear, do not assume that it is unlicensed—or licensed. Ask DHSUD for direct confirmation before paying.

4. Check for regulatory orders

Search the DHSUD List of Projects with Cease and Desist Orders. Ask the issuing Regional Office whether the project or license is:

Active and effective;
Suspended, revoked, cancelled, expired, or automatically revoked;
Covered by a cease-and-desist order;
Subject to conditions that remain unfulfilled;
Being sold under a temporary or conditional authority; or
Affected by an approved amendment, change of name, change of developer, or alteration of plans.

Sections 8 and 9 of P.D. 957 allow suspension or revocation on specified grounds. A document showing that a license was issued at some point does not, by itself, establish that the authority remains effective today.

5. Confirm directly with the issuing DHSUD Regional Office

This is the strongest practical verification step. Contact the DHSUD Regional Office with jurisdiction over the project and provide:

Project name and exact location;
Developer and registered owner;
License number;
Phase, tower, block, lot, or unit being offered;
Copy of the license presented to you; and
Name of the broker, salesperson, or marketing company.

Ask for written confirmation that the offered property falls within the license and that the license is currently effective. Also ask whether there are suspension, revocation, cease-and-desist, alteration, or enforcement orders affecting the project.

DHSUD’s Regional Offices directory provides the appropriate office details. DHSUD also identifies hredrb@dhsud.gov.ph for Housing and Real Estate Development Regulation inquiries. Verify current contact details on the official website before sending personal documents.

6. Verify the person selling the property

A valid project license does not establish that every person offering units is authorized or properly licensed.

Ask for the broker’s Professional Regulation Commission identification and registration details. A real estate salesperson should be accredited under a licensed real estate broker and should not act independently. DHSUD advises buyers to deal only with legitimate developers and appropriately licensed or registered brokers and salespersons.

Confirm that:

The person’s name matches their government-issued identification;
Their professional status is current;
The supervising broker is identified where applicable;
The developer has authorized them to market the specific project; and
Payments will be made only through the developer’s officially documented channel.

Do not transfer money to an individual’s personal account merely because that person can show a project license.

Regular, temporary, and conditional authority

Ask DHSUD to identify the exact legal status of the document presented.

DHSUD has issued rules allowing certain projects to operate under a Temporary License to Sell or Conditional License to Sell, subject to stated requirements, annotations, and validity periods. Under DHSUD’s 2026 issuance on temporary licensing, a Temporary License to Sell is generally valid for one year while the developer completes specified deficient requirements. Conditional licenses may also carry compliance conditions whose breach can result in revocation.

A temporary or conditional license is not automatically fake or invalid. However, buyers should determine:

Its issue and expiry dates;
The lots, units, phases, or towers covered;
The requirements still outstanding;
Whether DHSUD granted any permissible extension;
Whether the developer complied with required undertakings; and
What happens to buyer payments if the authority lapses before a regular license is issued.

Obtain DHSUD’s written confirmation rather than relying on the developer’s interpretation of the conditions. The governing document is available through the official DHSUD Department Circulars page.

Transactions that may be exempt

Section 7 of P.D. 957 states that a License to Sell and performance bond are not required for:

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; or
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 exemptions are narrow and fact-dependent. A developer’s ordinary sale of newly offered lots or condominium units does not become exempt merely because the seller calls it a private transaction, preselling arrangement, membership, assignment, or reservation.

If an exemption is claimed, request the title, prior deed or contract, partition documents, mortgage records, and other evidence establishing the exact statutory ground. Have the documents independently reviewed before paying.

Red flags that should stop the transaction

Pause the purchase if the seller:

Says the license is “still processing” or “to follow”;
Presents only a development permit, building permit, mayor’s permit, or SEC registration;
Shows a license for another project, tower, or phase;
Refuses to provide a complete, readable copy;
Pressures you to pay before DHSUD can confirm the document;
Uses a project or company name that does not match the license;
Says a reservation fee is harmless because it is “not yet a sale”;
Cannot explain an expired, temporary, or conditional license;
Asks for payment to a personal or unrelated bank account;
Promises amenities or specifications missing from the approved documents;
Tells you not to contact DHSUD directly; or
Claims that a famous developer no longer needs project-specific licensing.

A reservation document’s legal effect depends on its actual terms and circumstances. Do not assume that calling a payment “refundable” or a document a “reservation” removes all risk.

Other checks to complete before paying

A verified License to Sell is only one part of property due diligence.

Check the title and encumbrances

Obtain a current certified true copy of the Transfer Certificate of Title or Original Certificate of Title for subdivision land, or the relevant condominium title and master deed information. Confirm the registered owner and review mortgages, adverse claims, notices of lis pendens, restrictions, and other annotations.

P.D. 957 regulates project mortgages. DHSUD approval and safeguards may be required, and buyers may have rights concerning notice and direct payment to the mortgagee. A project license should not be treated as proof that the particular lot or unit is presently free of every lien.

Review the contract before signing

Check the contract for:

Exact lot or unit description;
Total price and all additional charges;
Payment schedule and interest;
Completion and turnover dates;
Refund and cancellation terms;
Title-delivery obligations;
Approved specifications and amenities;
Consequences of delay;
Assignment restrictions; and
Dispute provisions.

Compare these terms with the License to Sell, approved plan, brochure, and salesperson’s written representations.

Under Section 19 of P.D. 957, advertisements must reflect the true facts and must not mislead. Represented or promised facilities, improvements, and infrastructure form part of the sales warranties enforceable against the owner or developer. Preserve every advertisement and promise that influenced your decision.

Inspect the site

Confirm that the site, access road, boundaries, tower, and development stage correspond to the licensed project. Ask about utilities, drainage, right of way, construction permits, and the actual timetable.

A license authorizes selling; it is not a guarantee that every promised feature has already been completed.

Evidence to preserve

Keep complete, dated copies of:

Advertisements, brochures, price lists, and social-media posts;
Screenshots of DHSUD search results;
The Certificate of Registration and License to Sell;
Temporary or conditional licenses and their annotations;
Approved plans and promised specifications;
Reservation forms, contracts, disclosure documents, and receipts;
Emails, chat messages, recordings lawfully made, and meeting notes;
Broker, salesperson, and company identification;
Bank instructions and proof of every payment;
Written verification from DHSUD; and
Photographs and videos of the project site.

Use official receipts and traceable payment methods. Record who received each payment, for what purpose, and under which document.

If you already paid and cannot verify the license

Do not sign additional documents or make further payments solely because the seller threatens immediate forfeiture. First:

Ask the developer in writing for the complete licensing documents and an explanation of any discrepancy.
Request written status confirmation from the DHSUD Regional Office.
Preserve the advertisement, contract, receipts, payment records, and communications.
Ask DHSUD about regulatory assistance or preliminary conciliation.
Obtain legal advice before cancelling, stopping installments, demanding a refund, or signing a waiver.

The absence of a License to Sell is a serious regulatory violation, but it does not automatically answer every contractual question. In Co Chien v. Sta. Lucia Realty and Development, Inc., the Supreme Court held that P.D. 957 penalizes selling without the required registration and license but does not expressly make an otherwise valid contract automatically void. The Court reaffirmed that principle in Moldex Realty, Inc. v. Flora.

Whether a buyer may obtain a refund, rescission, specific performance, damages, or another remedy depends on the contract, payments, representations, project status, developer’s violations, and relief properly requested.

Where complaints may be brought

DHSUD now performs the regulatory functions formerly exercised by the Housing and Land Use Regulatory Board. The Human Settlements Adjudication Commission (HSAC) performs the adjudicatory function.

Under Sections 12, 15, and 16 of Republic Act No. 11201, HSAC Regional Adjudicators have original and exclusive jurisdiction over specified subdivision, condominium, memorial-park, and similar real-estate disputes, including certain buyer claims for refunds, specific performance, and unsound real-estate business practices.

As a practical distinction:

Contact DHSUD to verify licensing status, report unauthorized selling, and seek regulatory guidance or appropriate conciliation.
Consult the appropriate HSAC Regional Adjudication Branch when seeking an adjudicated remedy such as a refund, specific performance, or relief within its statutory jurisdiction.
Seek independent legal advice if the dispute also involves fraud, forged documents, title conflicts, foreclosure, threatened eviction, substantial payments, or uncertainty over the correct forum.

Do not wait for the project to disappear or for collection and forfeiture threats to escalate before preserving evidence and obtaining advice.

Common mistakes

Treating the developer’s SEC registration as a License to Sell

SEC registration establishes the company’s juridical existence; it does not authorize the sale of lots or units in a particular development.

Checking only the developer’s name

The relevant authorization belongs to the specific project and licensed scope. Verify the location, phase, tower, and property being offered.

Assuming a development or building permit is enough

Those permits serve different purposes. DHSUD confirms that a development permit does not substitute for a License to Sell.

Relying on an undated online screenshot

Confirm the current status with the issuing Regional Office, particularly if the license is old, temporary, conditional, amended, suspended, or disputed.

Paying first because the reservation is supposedly refundable

Refundability depends on the document, surrounding representations, and applicable law. Verification should come before payment.

Assuming a verified license guarantees the investment

A License to Sell is important regulatory protection, not insurance against delay, title problems, financing risk, misleading promises, or developer insolvency.

Frequently asked questions

Can a developer advertise before receiving a License to Sell?

As a general rule, P.D. 957’s broad definition of “sell” includes solicitation, offers, attempts to sell, and advertising. A developer should not market a covered project for sale without the required authority. Ask DHSUD about any claimed exception or temporary authorization.

Is a reservation fee allowed while the license application is pending?

Do not assume so. The legal effect depends on what was offered, what the reservation document obligates the parties to do, and the surrounding facts. Because “sell” is broadly defined, obtain written DHSUD confirmation before paying.

Does one license cover an entire development?

Not necessarily. Licensing may be limited to a particular project, phase, tower, building, or set of lots or units. Read the actual license and confirm its scope with DHSUD.

What if the online DHSUD list does not show the project?

Treat the result as unresolved. Ask the developer for the complete document and request direct confirmation from the DHSUD Regional Office. Do not pay until the discrepancy is satisfactorily explained.

Is an expired license number enough if the project was licensed before?

No. Ask DHSUD whether the license remains effective, was extended, was replaced by a regular license, or became suspended, revoked, cancelled, or otherwise ineffective.

Is a Temporary or Conditional License to Sell valid?

It can be valid within its stated scope and period, subject to its conditions and current DHSUD rules. Verify the document, expiry date, outstanding conditions, and present status directly with the issuing Regional Office.

Does the lack of a license automatically cancel the buyer’s contract?

Not automatically. Supreme Court decisions hold that P.D. 957 does not expressly make an otherwise valid contract void solely because the developer lacked the required license. Available remedies depend on the complete facts and documents.

Should I stop paying installments immediately if a problem appears?

Not without assessing the legal consequences. Send a documented inquiry, verify the status with DHSUD, preserve evidence, and obtain advice before stopping payments or cancelling. A mistaken unilateral action may create a separate default dispute.

Official sources

Disclaimer

This article provides general Philippine legal information, not legal advice for a particular transaction or dispute. Licensing status, administrative orders, and buyer remedies depend on current agency records and the specific documents and facts. Official sources were checked as of 31 August 2026.