Buying a pre-selling condominium means paying for a unit that may exist only on plans, brochures, and a construction schedule. A polished showroom, well-known brand, or persuasive agent does not prove that the particular project is legally authorized for sale. Before paying a reservation fee, verify three separate things: the developer’s legal identity, the project’s government approvals, and the authority of the person receiving your money.

The most important document is the project’s License to Sell issued by the Department of Human Settlements and Urban Development (DHSUD). But proper due diligence does not stop there. You should also examine the developer’s SEC records, the land title, mortgages and other annotations, construction permits, sales documents, broker credentials, and the developer’s actual history of completing and turning over projects.

What Makes a Pre-Selling Condo Project Legitimate?

A legitimate transaction has three layers.

1. The company legally exists

The developer, project owner, or seller must be a legally registered corporation, partnership, cooperative, or sole proprietorship. Its registration details must match the legal name appearing in the reservation agreement, Contract to Sell, receipts, and License to Sell.

SEC registration alone does not mean that the company has permission to sell a particular condominium project. It only confirms the company’s legal existence and corporate records.

2. The specific project is authorized for sale

Under Presidential Decree No. 957, the Subdivision and Condominium Buyers’ Protective Decree, a condominium project must generally be registered and issued a License to Sell before units are offered or sold to the public. The law defines “sale” broadly to include offers, solicitations, options, contracts to sell, advertisements, and attempts to dispose of units for value. (Supreme Court E-Library)

A Certificate of Registration and a License to Sell are different documents. Project registration comes first. The developer still cannot lawfully sell units in the registered project until the License to Sell has been issued. A License to Sell ordinarily requires an approved project plan and an adequate performance bond intended to secure project development and compliance with applicable rules. (Supreme Court E-Library)

3. The transaction itself is authorized and properly documented

Even when the company and project are legitimate, fraud can occur at the transaction level. A dishonest agent may collect money personally, sell a unit that is no longer available, use an outdated price sheet, or present documents belonging to a different tower or project.

The payee, unit designation, project phase, contract signatory, bank account, and official receipt must all be traceable to the authorized developer or seller.

How to Verify a Real Estate Developer Before Buying

1. Get the exact legal details before conducting any search

Ask the agent for the following in writing:

Complete legal name of the project owner
Complete legal name of the developer
Complete legal name of the entity that will sign the contract
Project name, address, tower, phase, and building
DHSUD Certificate of Registration number
DHSUD License to Sell number
SEC registration number
Title number of the land
Name and PRC license number of the supervising broker
Name and accreditation details of the salesperson
Target completion and turnover dates

Do not search using only the marketing brand. A project advertised as “The Residences at Central Park,” for example, may be legally owned by a corporation with an entirely different name.

Take screenshots or save copies of the advertisement, price quotation, sample computation, floor plan, amenity list, and turnover representations. Under Section 19 of PD 957, representations in brochures, advertisements, and other sales materials may form part of the warranties enforceable against the owner or developer. (Supreme Court E-Library)

2. Verify the DHSUD License to Sell

Check the DHSUD list of projects with Licenses to Sell or contact the DHSUD regional office having jurisdiction over the project location. DHSUD confirms that condominium projects must generally be registered and licensed before units are sold. (Human Settlements and Urban Development)

Match all of these details:

Item to verify	Why it matters
Project name	Similar names may be used for different developments
Exact location	A license for one site does not authorize another site
Tower, building, or phase	A license may cover only part of a multi-tower development
Project owner and developer	These should correspond with the contract and title documents
License number and issuance date	These help DHSUD confirm the record
Authorized unit types	Parking, commercial, residential, or condotel components may differ
Status of the license	A license may be active, suspended, revoked, temporary, or subject to conditions
Approved completion period	Compare this with the turnover date being promised

Ask for a clear copy of the actual License to Sell, not just a sales presentation containing a license number. Verify it independently with DHSUD.

Be cautious when the agent says:

“The license is being processed.”
“The developer already has a building permit.”
“The mother company has many licensed projects.”
“Reservation is allowed even without a License to Sell.”
“The license of the first tower covers the entire development.”
“DHSUD registration is enough.”

A building permit, mayor’s permit, SEC certificate, accreditation, or License to Sell issued for another project is not a substitute for the correct License to Sell.

A License to Sell is an important regulatory safeguard, but it is not a government guarantee that the project will be completed or that the developer cannot later encounter financial problems. It shows that the project satisfied applicable regulatory requirements when the license was issued.

3. Verify the developer and seller through the SEC

Use the SEC eSEARCH system to obtain or inspect corporate documents. The SEC describes eSEARCH as its principal e-commerce channel for downloading documents submitted to the Commission. (eSEARCH)

Useful records include:

Certificate of Incorporation
Articles of Incorporation and amendments
By-laws
Latest available General Information Sheet
Changes in corporate name
Principal office address
Names of directors and officers
Corporate status records
Documents showing mergers or changes in ownership

Check whether the company’s primary or secondary purposes include real estate development, property ownership, construction, marketing, or related activities.

Pay close attention to differences among the following entities:

The company that owns the land
The company named as project owner
The company developing the building
The marketing company
The company issuing receipts
The company signing the Contract to Sell

Using affiliated companies is not automatically improper. Large property groups commonly use a separate corporation for each project. However, the relationship must be documented.

When a marketing company or affiliate will sign or receive payments, ask for its written authority, such as a marketing agreement, board resolution, secretary’s certificate, or special power of attorney. The reservation agreement should identify the principal for whom the company is acting.

Corporate registration should not be confused with financial strength. Review the developer’s completed projects, delays, title-transfer record, pending disputes, and reliance on pre-selling collections. A newly incorporated project company may be legitimate but have limited assets of its own.

4. Examine the land title independently

For a pre-selling project, individual Condominium Certificates of Title ordinarily do not yet exist. Start with the Transfer Certificate of Title covering the project land, often called the mother title.

Request the title number and the Registry of Deeds where it is registered. Obtain a government-issued Certified True Copy through the Land Registration Authority eSerbisyo Portal or directly from a computerized Registry of Deeds.

The portal allows requests for certified copies of Original Certificates of Title, Transfer Certificates of Title, and Condominium Certificates of Title. Its published turnaround time is generally three to five working days for delivery within Metro Manila and five to seven working days elsewhere in the Philippines, with additional time for manually issued titles. (LRA eSerbisyo Portal)

The portal currently lists a total fee of ₱644.97 for a two-page title, increasing according to the number of pages. Fees can change, so rely on the amount assessed by the portal when making the request. (LRA eSerbisyo Portal)

Check the Certified True Copy for:

Name of the registered landowner
Title number and Registry of Deeds
Property location and land area
Technical description
Mortgages
Adverse claims
Notices of levy
Lis pendens, meaning notice of a pending court case involving the property
Restrictions on use or transfer
Easements and rights of way
Court orders
Existing leases or encumbrances
Annotations involving the condominium project or master deed

If the registered owner is different from the developer, ask for the joint venture agreement, development agreement, authority to develop, and written consent of the landowner.

A mortgage is not automatically evidence of fraud. Developers commonly borrow for construction. However, Section 18 of PD 957 requires prior regulatory approval before a developer mortgages a unit or lot in a covered project. The loan must be connected with project development, and affected buyers must be notified as required by law. (Supreme Court E-Library)

The Supreme Court has repeatedly emphasized the protective purpose of this rule and has treated mortgages made contrary to Section 18 as void against protected buyers in appropriate cases. (Supreme Court E-Library)

Ask the developer for:

DHSUD approval of the mortgage
The mortgagee bank’s release mechanism
Confirmation that your unit can be released from the mortgage after full payment
The process for issuing the individual Condominium Certificate of Title

5. Check the condominium and construction documents

Ask to inspect copies of:

Approved condominium plan
Master Deed with Declaration of Restrictions
Development permit or equivalent approval
Locational clearance or zoning approval
Building permit
Environmental approvals, when applicable
Fire-safety approvals required at the relevant construction stage
Approved floor plans
Current construction schedule
Amendments approved by DHSUD or the local government

A Certificate of Occupancy is normally issued only when the building is ready for lawful occupancy, so its absence during genuine pre-selling is expected. The important question is whether the developer has the approvals required for the current stage and is complying with the approved plans.

Under Section 20 of PD 957, the developer must complete the facilities, improvements, and forms of development represented in approved plans and sales materials within the period fixed by the regulatory authority. (Supreme Court E-Library)

Inspect the site personally when possible. Compare actual construction with the claimed progress. Ask nearby property owners, contractors, or earlier buyers about stoppages, unpaid work, flooding, access problems, or repeated redesigns.

6. Verify the broker and salesperson

Real estate brokers are regulated by the Professional Regulation Commission under Republic Act No. 9646, the Real Estate Service Act of the Philippines.

Use the PRC online license-verification service to search by the broker’s name or license number. PRC warns that online records may occasionally have posting delays, so unclear results should be confirmed directly with the Commission. (Professional Regulation Commission)

A salesperson does not operate independently. Under Section 31 of RA 9646:

The salesperson must be accredited.
The salesperson must work under the direct supervision and accountability of a licensed broker.
The salesperson cannot independently sign a written real estate agreement unless the supervising broker is also a signatory.
The salesperson should not negotiate a transaction for a broker without the required accreditation. (Supreme Court E-Library)

Ask for:

Broker’s PRC identification card
Broker’s current license details
Salesperson’s accreditation
Written authority to sell units in the particular project
Company-issued identification
Official company email address

A social-media profile, calling card, association membership, or “property consultant” title does not replace the required credentials.

7. Review the reservation agreement and Contract to Sell

Do not rely on the sample contract displayed at the showroom. Obtain the actual documents that will govern your unit and payment plan.

Review these provisions carefully:

Exact unit, tower, floor, orientation, and floor area
Parking slot and whether it has a separate title or contract
Total contract price
VAT treatment
Reservation fee and whether it is credited to the price
Down payment and amortization schedule
Financing assumptions
Turnover date
Extension or grace-period clauses
Force-majeure provisions
Conditions for acceptance of the unit
Defect-correction procedure
Association dues and commencement date
Transfer, assignment, and resale restrictions
Administrative, documentation, and transfer charges
Cancellation and refund provisions
Governing dispute-resolution procedure
Address where legal notices must be sent

Compare the contract with the advertisement and oral promises. Insist that material promises be written into the contract or an authorized addendum.

Section 33 of PD 957 declares void any contractual provision through which a buyer waives compliance with the decree or its implementing rules. (Supreme Court E-Library)

Also ask whether the Contract to Sell will be registered with the Registry of Deeds. Section 17 of PD 957 requires sellers to register contracts to sell, deeds of sale, and similar instruments involving covered units. (Supreme Court E-Library)

8. Investigate the developer’s track record

A legally registered developer can still have serious performance problems.

Check previous projects for:

Actual turnover dates compared with advertised dates
Frequency and length of delays
Quality of delivered units
Availability of utilities at turnover
Issuance of individual titles
Unpaid real property taxes
Unreleased mortgages
Complaints about refunds
Changes to promised amenities
Management of the condominium corporation
Special assessments imposed soon after turnover

Search using the developer’s complete legal name, not only its brand name. Review Supreme Court and Court of Appeals cases, HSAC proceedings that are publicly accessible, SEC notices, DHSUD advisories, and reports concerning previous projects.

Online reviews can reveal patterns, but they are not conclusive proof. Give greater weight to official documents, final decisions, dated photographs, contracts, receipts, demand letters, and consistent reports from multiple verified buyers.

9. Pay only through traceable, authorized channels

The reservation fee is often paid while the buyer is excited and under pressure to “hold” the unit. This is exactly when verification should be completed.

Follow these safeguards:

Pay only to the legal entity identified in the official payment instructions.
Use the developer’s verified corporate bank account or authorized payment portal.
Never transfer funds to the personal bank, e-wallet, or cryptocurrency account of an agent.
Obtain a provisional receipt or official company acknowledgment immediately.
Confirm how the payment will appear on the statement of account.
Check that the unit number and buyer’s name are correct.
Keep proof of payment, emails, chat messages, quotations, and signed documents.

Do not sign blank forms, undated documents, incomplete checks, or acknowledgments stating that you received documents you were never given.

Documents to Request Before Paying a Reservation Fee

Document	Obtain or verify through	What it should establish
License to Sell	DHSUD regional office or official list	The specific project, tower, or phase may legally be sold
Certificate of Registration	DHSUD	The project has been registered
SEC corporate documents	SEC eSEARCH	Legal identity, officers, purposes, and corporate history
Certified True Copy of mother title	LRA eSerbisyo or Registry of Deeds	Landowner, mortgages, claims, and restrictions
Approved condominium plan	Developer and DHSUD records	Authorized layout and project configuration
Master Deed and restrictions	Registry of Deeds or developer	Unit rights, common areas, and condominium rules
Building permit	City or municipal Office of the Building Official	Authority to construct the approved building
Mortgage approval and release terms	DHSUD, developer, and mortgagee bank	Whether the project mortgage is authorized and releasable
Broker’s license	PRC verification system	Broker’s professional registration
Salesperson accreditation	PRC and supervising broker	Salesperson’s authority and supervision
Contract to Sell	Developer	Price, unit details, turnover obligations, and remedies
Sample title-transfer computation	Developer	Expected taxes, registration costs, and contractual charges

A buyer who performs all online checks and already has complete document numbers may finish preliminary screening in one day. A proper title search normally requires several working days. Allow roughly one to two weeks for document collection, government confirmation, and contract review instead of paying immediately because a discount is about to expire.

Major Red Flags in a Pre-Selling Condo Sale

Walk away or pause the transaction when you encounter any of the following:

The agent refuses to provide the License to Sell number.
The license belongs to a different tower, phase, address, or corporation.
The License to Sell is still “for application.”
The company named on the receipt differs from the seller in the contract without explanation.
Payment is requested through an individual’s bank or e-wallet account.
The developer will not disclose the mother-title number.
The landowner is unrelated to the developer and no development agreement is shown.
The title contains a mortgage, adverse claim, or court notice that the seller will not explain.
The contract allows indefinite turnover delays.
Material promises appear only in chat messages or verbal presentations.
The agent is unable to identify the supervising licensed broker.
The buyer is pressured to sign incomplete documents.
The developer refuses to provide copies before payment.
The unit is described as residential in marketing materials but as a hotel, condotel, leaseback product, or commercial investment in the contract.
Guaranteed rental income is promised without a clear, enforceable agreement and financially capable guarantor.
The advertised floor area does not state whether balconies, walls, or common areas are included.
The salesperson says government verification is unnecessary because the brand is famous.

Special Checks for Foreign Buyers and Overseas Filipinos

Foreign ownership limits

Foreign nationals may generally acquire condominium units under the Condominium Act, Republic Act No. 4726, provided the applicable limitation on foreign ownership of the condominium project or condominium corporation is not exceeded.

Section 5 prevents transfers that would cause alien ownership in the condominium corporation to exceed the legal limit. In practical terms, developers commonly monitor the project’s foreign allocation to keep foreign participation within the permitted 40% ceiling. (Lawphil)

A foreign buyer should obtain written confirmation that:

The project is legally constituted as a condominium.
The proposed transfer is within the remaining foreign-ownership allocation.
The unit will eventually receive a Condominium Certificate of Title.
The contract does not improperly give the buyer direct ownership of Philippine land.
Membership or shares in the condominium corporation will accompany the unit as required.

A long-term lease, hotel participation agreement, or right-to-use contract is not the same as condominium ownership. The legal nature of the product should be clear before payment.

Buyers signing documents abroad

An overseas buyer may appoint a trusted Philippine representative through a Special Power of Attorney. The document should specifically authorize the acts the representative may perform, such as reserving a unit, signing the Contract to Sell, receiving notices, inspecting the property, or processing title documents.

An SPA executed abroad may generally be notarized before a Philippine Embassy or Consulate or apostilled by the competent authority in a country participating in the Apostille Convention, subject to the requirements applicable in the country of execution. (Philippine Embassy in New Delhi)

Do not give a representative unlimited authority to sell, mortgage, assign, or receive refunds unless those powers are genuinely intended.

What to Do If You Already Paid and Discover a Problem

First, preserve all evidence:

Reservation agreement
Contract to Sell
Official receipts
Bank records
Advertisements
Screenshots
Emails and messages
License-to-Sell documents
Construction updates
Demand letters
Title records

Send a formal written request to the developer identifying the problem and asking for supporting documents or corrective action. Deliver it through a method that creates proof of receipt.

For suspected unlicensed selling, false regulatory representations, or violations involving project registration, report the matter to the appropriate DHSUD regional office.

For claims involving refunds, unsound real estate business practices, delayed development, contractual obligations, or specific performance, jurisdiction generally belongs to the Regional Adjudication Branch of the Human Settlements Adjudication Commission, or HSAC. Republic Act No. 11201 transferred the former HLURB’s adjudicatory functions to HSAC while regulatory functions went to DHSUD. (Supreme Court E-Library)

HSAC Regional Adjudicators have original and exclusive jurisdiction over claims by condominium buyers against project owners, developers, dealers, brokers, and salespersons, including refund claims and disputes concerning contractual or statutory obligations. (Supreme Court E-Library)

If the developer fails to develop the project according to the approved plans and required timetable, Section 23 of PD 957 allows the buyer, after due notice, to stop further installment payments and seek reimbursement of amounts paid, including amortization interest but excluding delinquency interest, with legal interest. (Supreme Court E-Library)

This remedy should not be confused with a buyer simply becoming unable or unwilling to continue paying. When cancellation results from the buyer’s own default rather than the developer’s failure, rights are generally governed by Republic Act No. 6552, the Maceda Law. (Human Settlements and Urban Development)

The absence of a License to Sell does not automatically make every contract void. In Spouses Co Chien v. Sta. Lucia Realty and Development, Inc., the Supreme Court explained that PD 957 penalizes selling without the required registration and license but does not, by that fact alone, automatically nullify an otherwise valid contract. The absence of a license may still be highly relevant when combined with fraud, misrepresentation, nondevelopment, or other violations. (Supreme Court E-Library)

For that reason, do not assume that you can safely abandon payments solely because an online search produced no result. Obtain written DHSUD confirmation, give proper notice, and base the next step on the actual license status, contract, construction record, and legal ground for cancellation.

Frequently Asked Questions

How do I check if a condo developer is registered with DHSUD?

Search the DHSUD list of projects with Licenses to Sell and contact the DHSUD regional office covering the project location. Provide the exact project name, tower or phase, address, developer, and claimed License to Sell number.

Is an SEC-registered developer automatically legitimate?

No. SEC registration confirms that the company legally exists. It does not prove that the company owns the land, has financial capacity, possesses a valid License to Sell, or is authorized to sell the particular unit.

Can a developer accept reservations while its License to Sell is pending?

Treat this as a major risk. PD 957 broadly regulates offers, solicitations, contracts, and attempts to sell. Do not rely on a statement that the license will be issued later. Require DHSUD confirmation before paying.

Can one License to Sell cover several towers?

It depends on the scope stated in the license and approved project records. Never assume that a license for Tower 1 covers Tower 2, another phase, parking inventory, or a separately branded building.

Is a building permit the same as a License to Sell?

No. A building permit authorizes construction under building regulations. A DHSUD License to Sell authorizes the sale of units in the covered project. A legitimate pre-selling project ordinarily needs both types of approval at the appropriate stages.

Is it safe to buy a mortgaged pre-selling condo?

A mortgage is not automatically improper, but it must be examined carefully. Verify DHSUD approval, the use of the loan for project development, buyer-notification compliance, and the mortgagee’s process for releasing your unit after full payment.

How can I verify the property agent?

Ask for the agent’s company ID, salesperson accreditation, supervising broker, and project authority. Verify the broker through the PRC online system. A salesperson should be under the direct supervision of a licensed broker.

Can a foreigner buy a pre-selling condo in the Philippines?

Generally, yes, provided the project is legally constituted as a condominium and the transfer will not cause foreign participation to exceed the applicable ownership limit. Obtain written confirmation of the remaining foreign allocation.

Can I get a refund if the project has no License to Sell?

The lack of a license is a serious violation but does not automatically determine the exact refund remedy in every case. Refund entitlement may depend on misrepresentation, project delay, nondevelopment, contract terms, and the relief sought before HSAC.

Should I pay a reservation fee before reviewing the Contract to Sell?

Avoid doing so. Obtain the proposed Contract to Sell, License to Sell, price computation, refund rules, title details, and payment instructions first. A “refundable” reservation fee may still become difficult to recover when the conditions are unclear or disputed.

Key Takeaways

Verify the specific project, tower, and phase, not merely the developer’s brand.
Confirm the License to Sell directly through DHSUD before paying.
Check SEC records, but remember that SEC registration is not project approval.
Obtain a Certified True Copy of the mother title and examine every annotation.
Verify mortgages, development authority, construction permits, and approved plans.
Check the broker’s PRC license and the salesperson’s accreditation and supervision.
Compare advertisements with the actual Contract to Sell.
Pay only through the developer’s authorized and traceable channels.
Foreign buyers must verify the condominium’s remaining foreign-ownership allocation.
Keep all documents and written communications in case a DHSUD report or HSAC claim becomes necessary.