Sep 10, 2026 · by BalayHub Admin · 6 min read

Verify DHSUD License to Sell Before You Pay: 2026 Guide

How to verify a DHSUD License to Sell in ten minutes: PD 957 Sections 4, 5 and 39, the tower by tower check, the documents to demand, and the red flags.

Verify DHSUD License to Sell Before You Pay: 2026 Guide

Every pre selling condo and every subdivision lot in the Philippines can only be sold once the developer holds a License to Sell for that specific project, and the surest way to lose a reservation fee is to skip the check. To verify DHSUD license to sell status takes about ten minutes and costs nothing, and it tells you whether the tower you are reserving in exists on paper, whether the company collecting your money is the one licensed to sell it, and whether the project has a registration you can complain against later. Here is the procedure, the documents to ask for, and the red flags that mean walk away.

Why the license matters more than the brochure

The rule comes from Presidential Decree 957, the Subdivision and Condominium Buyers' Protective Decree. Section 4 requires the owner of a project to register it and obtain a Certificate of Registration; Section 5 then states that even a registered owner or dealer is not authorized to sell any subdivision lot or condominium unit unless he has first obtained a License to Sell. Section 11 adds that no dealer, broker or salesman may sell lots or units without registering with the housing authority. The full text is on Lawphil; the authority today is the Department of Human Settlements and Urban Development, DHSUD.

The license is what turns a marketing pitch into a regulated sale. It is issued per project, and in practice per phase or per tower, after DHSUD has reviewed the land title, the development permit, the plans and the developer's capacity. It comes with obligations that protect you: Section 20 requires the developer to complete the facilities and improvements within one year of the license, Section 23 says your installments cannot be forfeited if you stop paying because the developer failed to develop, and Section 25 requires delivery of the title on full payment. None of those rights attach to a project sold without a license. Section 39 makes selling without one a criminal matter, with fines and imprisonment of up to ten years.

The ten minute check, step by step

Start by collecting the exact facts from the seller: the project name as registered, the tower or phase, the address, and the developer's full corporate name as it appears on the reservation form and the payment instructions. Marketing names and corporate names differ more often than you would expect, and the license is issued to the corporation.

Then open the DHSUD list of projects with License to Sell and look up the project. Match three things: the project name and location, the developer's corporate name, and the scope of the license, meaning which tower or phase it covers. A license for Tower 1 does not cover Tower 2 of the same project, and a license for Phase 1 of a subdivision does not cover the lots in Phase 3 that the agent is offering at a launch discount. If the list shows the license as expired, suspended or revoked, or does not show the project at all, stop.

Next, ask the developer for copies of the Certificate of Registration and the License to Sell for your tower, and compare the numbers with what DHSUD shows. A legitimate sales office produces these on request without drama. Refusal, or a promise to send them "after the reservation", is the answer.

Finally, match the money to the license. Payments should go to the licensed corporation, by official receipt in its name, or to a collection arrangement the developer discloses in writing. A reservation fee routed to a personal account, to a marketing outfit or to a company with a different name than the licensee is the single most common pattern in the complaints we read.

The rest of the file, if the price is large

For a purchase in the millions, the license check is the first layer, not the last. Ask the Registry of Deeds for a certified copy of the mother title of the land and check it for mortgages and other annotations; our guide on verifying a land title shows how. Confirm the developer's corporate registration with the SEC, which also tells you who is authorized to sign. Ask the city for the development permit and, for a ready for occupancy unit, the certificate of occupancy. And check that the agent selling to you is a licensed real estate practitioner with written authority from the developer for that project, because the commission structure in pre selling attracts freelancers with a business card and nothing else.

Read the contract with the same care. The reservation agreement and the Contract to Sell should name the licensed corporation, describe the unit by tower, floor and unit number, and state the turnover date; our explainer on the Contract to Sell versus the Deed of Absolute Sale walks through what each document commits you to, and the Maceda Law guide covers what you get back if you stop paying later.

Red flags that mean walk away

The seller cannot produce a License to Sell for the specific tower or phase. The project is "pre launch" and reservations are being taken "before the license comes out", which is exactly the sale PD 957 prohibits. The license exists but names a different developer than the one on your reservation form. The payment instructions point anywhere other than the licensed corporation. The agent pressures you to reserve today because the "license price" ends tomorrow. Any one of these is enough; two together are a scam in progress.

Pre selling itself is not the problem. Most of the towers in our building directory and most of the condos for sale on the site were sold pre selling under a valid license, and the discount for buying early is real; the point is that the discount only exists inside the licensed project. Our guide to the first visit to a pre selling condo covers the questions to ask on site, and the round up of new condo developments launching in 2026 shows how much choice there is, which is one more reason never to buy the one project that cannot show its papers.

If you already paid and something is wrong

If the license was missing or the developer is not delivering, you have a regulator to go to. DHSUD handles buyer complaints against developers, and its adjudication rules now include a 30 day resolution track that we described in our piece on filing a DHSUD complaint against a developer. Gather the reservation agreement, every receipt, the marketing materials and the messages with the agent, and file early; the decree's non forfeiture rule in Section 23 is on your side when the development stalls, but only if the project was registered in the first place.

This article is general information, not legal advice. Check the current DHSUD list and requirements directly, and consult a lawyer before signing a contract for a pre selling unit.

Frequently asked questions

How do I check if a developer has a License to Sell?

Open the DHSUD list of projects with License to Sell, search the project by name or developer, and match three things with the seller's paperwork: the project name and location, the developer's exact corporate name, and the tower or phase the license covers. Then ask the sales office for copies of the Certificate of Registration and the License to Sell and compare the numbers. It takes about ten minutes.

Is it legal to reserve a pre selling unit before the License to Sell is issued?

No. Section 5 of PD 957 prohibits selling any subdivision lot or condominium unit, and that includes taking reservations and installments, unless the developer has first obtained a License to Sell for that project. A launch that collects money before the license comes out is exactly the sale the decree forbids, and Section 39 makes it punishable by fines and up to ten years of imprisonment.

Does one License to Sell cover the whole project?

Usually not. Licenses are issued per project and in practice per phase or per tower, because DHSUD reviews each one's plans, permits and title. A valid license for Tower 1 says nothing about Tower 2, and a license for Phase 1 of a subdivision does not cover lots in a later phase. Always match the license to the specific tower, floor and unit on your reservation form.

What if I already paid a developer that had no License to Sell?

Gather the reservation agreement, receipts, marketing materials and your messages with the agent, and file a complaint with DHSUD, which adjudicates buyer complaints against developers and now has a 30 day resolution track for some cases. Section 23 of PD 957 protects your installments when a developer fails to develop, but the protection is far stronger when the project was registered and licensed, so act early.

What are the red flags of an unlicensed sale?

The seller cannot produce a license for your specific tower or phase; reservations are taken before the license is issued; the license names a different developer from the one on your form; payments are routed to a personal account or a marketing company instead of the licensed corporation; and pressure to reserve today. Any one of these is reason enough to stop.

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