How to Apply for a License to Sell (Real Estate)
Under Presidential Decree No. 957 (the Subdivision and Condominium Buyers' Protective Decree), no owner or developer shall sell or offer to sell any subdivision lot or condominium unit to the public without first obtaining a License to Sell (LS) from the Department of Human Settlements and Urban Development (DHSUD). The License to Sell is a government-issued document certifying that a subdivision or condominium project has been registered, its development plan has been approved, and the developer has complied with all legal and regulatory requirements necessary to offer real property units for sale to the buying public. This tutorial will walk you through the complete process of applying for a License to Sell with DHSUD, from project registration to the issuance of your LS.
The License to Sell requirement exists to protect homebuyers and lot buyers from unscrupulous developers who may sell properties that are unregistered, located on disputed land, or not developed in accordance with approved plans. By requiring developers to secure an LS before selling, DHSUD ensures that every real estate project offered to the public has undergone proper review, that necessary permits and clearances have been obtained, and that the developer has posted the required performance bond or escrow deposit to guarantee the completion of the project.
Who Needs a License to Sell?
The following entities are required to obtain a License to Sell from DHSUD before selling or offering to sell real property to the public:
- Subdivision developers — companies or individuals developing and selling subdivision lots, including residential, commercial, and industrial subdivisions
- Condominium developers — entities developing and selling condominium units, whether residential, office, or commercial condominiums
- House and lot developers — developers selling house and lot packages within subdivision projects, including economic and socialized housing projects under BP 220
- Real estate dealers selling lots — persons or entities engaged in the business of buying, selling, exchanging, leasing, or otherwise dealing in real estate on a regular basis, who are selling subdivision lots or condominium units
- Joint venture partners — landowners who enter into joint venture agreements with developers for the development and sale of subdivision lots or condominium units
- Government agencies engaged in housing projects — in certain cases, government housing agencies developing and selling lots or housing units may also need DHSUD clearance
Note: The LS requirement applies to the project, not just the developer. A developer with multiple projects must obtain a separate License to Sell for each project (or each phase of a project, if the project is developed in phases).
Warning: Selling Without a License to Sell is a Criminal Offense
Under Section 5 of PD 957, it is unlawful for any subdivision owner, developer, operator, or dealer to sell any subdivision lot or condominium unit without first obtaining a License to Sell from DHSUD (formerly HLURB). Any person who violates this provision shall be subject to:
- Fine of not more than Twenty Thousand Pesos (P20,000.00) under PD 957, and/or
- Imprisonment of not more than ten (10) years, and/or
- Administrative sanctions including revocation of the developer's Certificate of Registration, suspension of business operations, and blacklisting from future DHSUD transactions
In addition, buyers who purchase from developers without a valid LS may file complaints with DHSUD and demand a full refund of all payments made, plus damages. The contract to sell or deed of sale may also be declared void. Developers are strongly advised to secure the License to Sell before any marketing, advertising, or sales activity commences.
Legal Basis for the License to Sell
The License to Sell requirement is anchored on several key Philippine laws and regulations governing the real estate industry:
- Presidential Decree No. 957 (PD 957) — The Subdivision and Condominium Buyers' Protective Decree. This is the primary law requiring developers to register their projects and obtain a License to Sell before offering subdivision lots or condominium units for sale. Sections 4 and 5 specifically mandate the registration and licensing requirements.
- Republic Act No. 4726 (RA 4726) — The Condominium Act of the Philippines. Establishes the legal framework for condominium development, ownership, and management. Condominium projects must comply with both RA 4726 and PD 957.
- Batas Pambansa Bilang 220 (BP 220) — Provides for an alternative set of standards for economic and socialized housing projects. Developers of socialized housing still need an LS but may benefit from relaxed development standards.
- Republic Act No. 11201 (RA 11201) — The DHSUD Act of 2019. Created the Department of Human Settlements and Urban Development and transferred regulatory functions (including LS issuance) from the former Housing and Land Use Regulatory Board (HLURB) to DHSUD.
- DHSUD Administrative Orders and Memorandum Circulars — Various DHSUD issuances that prescribe the specific requirements, procedures, forms, and fees for License to Sell applications.
Step-by-Step Process: Applying for a License to Sell
The License to Sell application process involves multiple steps. Each step must be completed in order before proceeding to the next. Below is the complete step-by-step guide:
Register the Project with DHSUD
Before you can apply for a License to Sell, the subdivision or condominium project itself must first be registered with DHSUD. Project registration involves obtaining a Certificate of Registration (CR) for the project. This is different from the developer's own Certificate of Registration — the project CR confirms that DHSUD has reviewed and approved the project's development plan, location, and basic compliance with applicable laws and standards.
- Submit the project registration application form to DHSUD
- Attach the approved subdivision or condominium plan
- Include proof of land ownership (Transfer Certificate of Title or Original Certificate of Title)
- Provide the development permit issued by the Local Government Unit (LGU)
- Pay the project registration fee
Once the project is registered, DHSUD will issue the project's Certificate of Registration. This CR is a prerequisite for the License to Sell application.
Secure All Required Clearances and Permits
Before filing the LS application, the developer must secure all necessary government clearances and permits for the project. These clearances ensure that the project site is suitable for development, that environmental standards are met, and that the project conforms to local land use and zoning regulations.
- Development Permit from the LGU (Local Government Unit) where the project is located
- Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR), if required based on the project size and type
- Locational Clearance from the LGU zoning office, confirming the project conforms to the Comprehensive Land Use Plan (CLUP) and zoning ordinance
- Fire Safety Inspection Certificate from the Bureau of Fire Protection (BFP), for condominium and multi-story projects
- Building Permit from the Office of the Building Official (OBO), for condominium buildings and model houses
- Water and sewage clearances from the local water district or relevant utility
- Barangay clearance from the barangay where the project is located
The specific clearances required may vary depending on the type, size, and location of the project. Check with the DHSUD regional office for the complete list applicable to your project.
Prepare the License to Sell Application Documents
Gather and prepare all the documents required for the License to Sell application. Completeness of requirements is critical — incomplete submissions will be returned to the applicant, causing delays. See the detailed requirements table below for the full list of documents.
- Accomplished LS application form (DHSUD-prescribed form)
- Certificate of Registration of the project (obtained in Step 1)
- Approved subdivision plan or condominium plan
- Land title(s) covering the project area (TCT/OCT)
- Tax clearance from the Bureau of Internal Revenue (BIR)
- Performance bond or escrow deposit documents
- Approved model Contract to Sell
- Price list and terms of payment
- Audited financial statements of the developer
- Location and vicinity maps
- All clearances and permits obtained in Step 2
Ensure all documents are in original or certified true copies, as required by DHSUD. Some documents may need to be notarized.
File Application at DHSUD (Central or Regional Office)
Submit the complete LS application package to the appropriate DHSUD office. Applications may be filed at either the DHSUD Central Office in Quezon City or at the DHSUD Regional Office that has jurisdiction over the area where the project is located.
- Proceed to the DHSUD Receiving/Records Section and submit your application package
- The receiving clerk will check the completeness of your documents
- If complete, the application will be officially received and assigned a case/docket number
- If incomplete, the application will be returned with a checklist of missing requirements
- Keep the receiving copy or acknowledgment receipt for tracking purposes
Some DHSUD regional offices also accept online or electronic filing. Check with your regional office for the availability of e-filing services.
Pay Application/Filing Fees
After the application is officially received, the applicant will be assessed the corresponding application and filing fees. These fees vary depending on the project type, the number of lots or units, and the total project cost.
- Obtain the Order of Payment or Assessment from the DHSUD processing division
- Pay the assessed fees at the DHSUD Cashier or through authorized payment channels
- Keep the official receipt as proof of payment
- Fees generally include: filing fee, processing fee, and inspection fee
- For subdivision projects, fees may be computed based on the number of saleable lots and total lot area
- For condominium projects, fees may be based on the number of units and total floor area
Fee schedules are published by DHSUD and may be updated periodically. Ask the DHSUD office for the current fee schedule before filing.
DHSUD Evaluation and Site Inspection
After filing and payment, DHSUD will evaluate the application documents and conduct a site inspection of the project. This is a critical step where DHSUD verifies that the project, as described in the application, matches the actual conditions on the ground.
- DHSUD evaluators will review all submitted documents for completeness and compliance
- A site inspection team will visit the project location to verify:
- Actual development status of the project
- Conformity with the approved subdivision or condominium plan
- Road networks, drainage, and utility installations
- Open space and amenity area compliance
- Environmental and geologic suitability of the site
- The developer or an authorized representative should be available during the site inspection
- DHSUD will prepare an inspection report with findings and recommendations
Processing time for evaluation and inspection is typically 30-60 working days, depending on the complexity of the project and the workload of the DHSUD office.
Comply with Additional Requirements (If Any)
During the evaluation and site inspection, DHSUD may identify deficiencies or additional requirements that must be addressed before the License to Sell can be issued. The developer will be notified in writing of any such requirements.
- Common additional requirements include: updated financial statements, additional clearances, amended plans, or corrections to submitted documents
- If the site inspection reveals discrepancies between the approved plan and the actual development, the developer may be required to submit an amended plan or rectify the discrepancies
- The developer is given a reasonable period to comply with the additional requirements
- Failure to comply within the given period may result in the denial or archiving of the LS application
Respond promptly to any DHSUD notices or orders for additional compliance. Delays in submission of additional requirements will extend the overall processing time.
Post Performance Bond or Escrow Deposit
Before the License to Sell is issued, the developer is required to post a performance bond or escrow deposit. This financial guarantee is mandated by PD 957 to ensure that the developer will complete the development of the project in accordance with the approved plans and within the prescribed time frame.
- The performance bond is typically a surety bond issued by a DHSUD-accredited bonding company, or a cash deposit held in escrow
- The bond amount is computed based on a percentage of the estimated total development cost of the project (usually 10-20% of the remaining development cost)
- The escrow deposit is placed in a bank account designated by DHSUD, and withdrawals require DHSUD approval based on the progress of development
- The bond or escrow secures the completion of roads, drainage, water supply, electricity, open spaces, and other infrastructure and amenities
- The performance bond is released upon completion of the project development as certified by DHSUD
The specific bond amount and terms will be determined by DHSUD based on the project evaluation. Consult with the DHSUD processing officer for the exact amount and acceptable forms of the performance bond.
Receive the License to Sell
Once DHSUD has evaluated the application, completed the site inspection, confirmed compliance with all requirements, and verified the posting of the performance bond or escrow deposit, DHSUD will approve and issue the License to Sell for the project.
- The LS will be released to the developer or authorized representative upon presentation of the claim stub and valid ID
- The LS document will specify: the project name and location, the number of lots/units covered, the validity period, the approved price range, and any conditions attached to the license
- The developer must display the License to Sell prominently in the project's sales office and include the LS number in all advertisements and marketing materials
- A copy of the LS must also be furnished to all buyers upon execution of the Contract to Sell
- The developer may now legally sell or offer to sell the covered lots or units to the buying public
The License to Sell is project-specific and phase-specific. If the project is being developed in multiple phases, a separate LS application must be filed for each phase.
Requirements for License to Sell Application
Below is the complete list of documentary requirements for a License to Sell application with DHSUD. Requirements may vary slightly depending on the project type (subdivision vs. condominium) and the DHSUD office handling the application. Always confirm with the DHSUD regional office for the most current and specific requirements for your project.
| No. | Requirement | Details / Notes |
|---|---|---|
| 1 | Accomplished Application Form | DHSUD-prescribed LS application form, duly accomplished and signed by the authorized representative of the developer/owner. Must be notarized. |
| 2 | Certificate of Registration of the Project | Certified true copy of the Certificate of Registration (CR) issued by DHSUD for the specific project/phase. Must be current and valid. |
| 3 | Approved Subdivision/Condominium Plan | Copy of the approved subdivision plan (for subdivision projects) or condominium plan (for condo projects), as approved by DHSUD or the LGU. Must include lot/unit layout, road network, open spaces, and amenities. |
| 4 | Development Permit from LGU | Development permit or locational clearance issued by the LGU having jurisdiction over the project site. Confirms compliance with zoning and land use regulations. |
| 5 | Title(s) Covering the Project Area (TCT/OCT) | Certified true copy of the Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT) covering the land area of the project. Must be in the name of the developer/owner or supported by a deed of sale, joint venture agreement, or authority to develop. |
| 6 | Tax Clearance from BIR | Tax clearance certificate issued by the Bureau of Internal Revenue (BIR) for the developer/owner entity. Confirms that the developer has no outstanding tax obligations. Must be current and valid. |
| 7 | Performance Bond or Escrow Deposit | Surety bond from a DHSUD-accredited bonding company, or proof of escrow deposit in a DHSUD-designated bank account. Amount is based on the estimated remaining development cost of the project (typically 10-20%). |
| 8 | Approved Model Contract to Sell | Draft of the standard Contract to Sell to be used for the project, for DHSUD review and approval. Must comply with PD 957 requirements and DHSUD guidelines on contract provisions, including buyer protections. |
| 9 | Price List and Terms of Payment | Detailed price list of all lots/units for sale, including lot/unit areas, prices per square meter, total selling prices, and the terms of payment (downpayment, monthly amortization, interest rates, installment period). Must be signed by the authorized representative. |
| 10 | Location/Vicinity Map | Map showing the exact location of the project, including major roads, landmarks, and nearby facilities. Should clearly identify the project site in relation to the surrounding area. |
| 11 | Audited Financial Statements of Developer | Latest audited financial statements (AFS) of the developer/owner, prepared and signed by an independent Certified Public Accountant (CPA). Must show the financial capacity of the developer to complete the project. |
| 12 | Other Clearances (Fire, Environmental, etc.) | Other applicable clearances such as: Fire Safety Inspection Certificate (BFP), Environmental Compliance Certificate (DENR-EMB), Building Permit (OBO), water/sewage clearance, barangay clearance, and any other permits required by the LGU or national agencies. |
Important: All documents must be submitted in original or certified true copies, unless otherwise specified by DHSUD. Some documents must be notarized. Requirements may be updated by DHSUD through administrative orders or memorandum circulars — always check with the DHSUD office for the latest requirements before filing your application.
Additional Requirements by Project Type
Subdivision Projects
- Approved subdivision plan signed by a licensed geodetic engineer
- Road lot computation and technical description
- Open space allocation (at least 30% of gross area for open space, including parks, playgrounds, and community facilities)
- Certification of road network completion or development timeline
- Drainage and flood control plan, especially for projects in flood-prone areas
- Water supply commitment from a local water district or certificate of deep well permit
- Power supply commitment from the local electric cooperative or distribution utility
Condominium Projects
- Approved condominium plan signed by a licensed architect and structural engineer
- Master Deed and Declaration of Restrictions
- Condominium corporation by-laws (enabling act)
- Structural analysis and design certification
- Fire Safety Inspection Certificate from the Bureau of Fire Protection
- Building permit from the Office of the Building Official
- Common area computation showing compliance with condominium law requirements
- Elevator and mechanical permit (for high-rise buildings)
Sample License to Sell Application Flow
Below is a simplified example of a License to Sell application flow for a residential subdivision project, showing the typical sequence of steps and timeline:
Example: LS Application for "Sunrise Heights Subdivision"
=====================================================
LICENSE TO SELL APPLICATION FLOW
Project: Sunrise Heights Subdivision, Phase 1
Developer: ABC Realty Development Corp.
Location: Brgy. San Jose, City of San Pedro, Laguna
Total Lots: 150 residential lots
Total Area: 5.2 hectares
=====================================================
STEP 1: PROJECT REGISTRATION
- Filed project registration with DHSUD Region IV-A
- Submitted: Approved subdivision plan, TCT Nos.
T-12345 and T-12346, Development Permit from
City of San Pedro
- CR Issued: CR No. R4A-2024-001234
- Date: January 15, 2024
STEP 2: CLEARANCES AND PERMITS SECURED
- Development Permit: DP No. 2023-0456 (City of
San Pedro)
- Locational Clearance: LC No. 2023-789 (City
Planning Office)
- Environmental Compliance Certificate: ECC-R4A-
2023-0123 (DENR-EMB Region IV-A)
- Barangay Clearance: BC No. 2023-112 (Brgy. San
Jose)
- Water Supply Commitment: Laguna Water District
- Power Supply Commitment: MERALCO
STEP 3: DOCUMENTS PREPARED
- Accomplished LS Application Form (notarized)
- CR No. R4A-2024-001234
- Approved Subdivision Plan (150 lots + road lots
+ open spaces)
- TCT Nos. T-12345 and T-12346 (certified true
copies)
- BIR Tax Clearance (valid until Dec 2024)
- Model Contract to Sell (DHSUD-compliant)
- Price List: PHP 1.2M - PHP 2.5M per lot
- Terms: 20% DP, balance payable in 5-10 years
- Location/Vicinity Map
- Audited Financial Statements (FY 2023)
- All clearances from Step 2
STEP 4: APPLICATION FILED
- Filed at DHSUD Regional Office IV-A
- Docket No.: LS-R4A-2024-00567
- Date Filed: February 5, 2024
- Application received (complete)
STEP 5: FEES PAID
- Filing Fee: PHP 5,000.00
- Processing Fee: PHP 15,000.00
- Inspection Fee: PHP 10,000.00
- Total Paid: PHP 30,000.00
- OR No.: 2024-789012 (February 5, 2024)
STEP 6: EVALUATION & SITE INSPECTION
- Document evaluation: February 6-20, 2024
- Site inspection scheduled: February 28, 2024
- Site inspection conducted: February 28, 2024
- Inspection report: Road network 60% complete,
drainage 50% complete, water system installed
- Recommendation: Approve with conditions
STEP 7: ADDITIONAL COMPLIANCE
- DHSUD required updated drainage completion
timeline
- Developer submitted amended development timeline
- Compliance submitted: March 10, 2024
STEP 8: PERFORMANCE BOND
- Estimated remaining development cost: PHP 25M
- Performance bond required: PHP 5M (20%)
- Surety bond posted: Bond No. SB-2024-456
(Stronghold Insurance Co.)
- Bond submitted to DHSUD: March 15, 2024
STEP 9: LICENSE TO SELL ISSUED
- LS No.: R4A-2024-00567
- Date Issued: March 25, 2024
- Valid for: 5 years (until March 25, 2029)
- Covers: 150 residential lots, Phase 1
- Condition: Developer must complete all
infrastructure within 3 years
=====================================================
Total Processing Time: Approximately 49 days
(from filing to issuance)
=====================================================Fees and Costs
The fees for a License to Sell application vary depending on the project type, number of lots/units, total project area, and total project cost. Below is a general guide to the fees involved:
| Fee Type | Estimated Amount | Notes |
|---|---|---|
| Filing Fee | PHP 1,000 - PHP 10,000 | Based on project type and number of lots/units |
| Processing Fee | PHP 5,000 - PHP 50,000 | Computed based on total project cost or number of saleable lots/units |
| Inspection Fee | PHP 5,000 - PHP 20,000 | Covers site inspection; may include transportation for out-of-town projects |
| Performance Bond | 10-20% of development cost | Surety bond premium or cash escrow; refundable upon project completion |
| Other Fees | Varies | Notarization, certification fees, environmental compliance, LGU permits, etc. |
Note: The fees listed above are estimates and may vary depending on the DHSUD office, the project size, and any applicable DHSUD administrative orders. Always request the current fee schedule from the DHSUD office before filing your application.
Frequently Asked Questions (FAQ)
How much does a License to Sell cost?
The total cost of obtaining a License to Sell depends on several factors, including the project type (subdivision or condominium), the number of saleable lots or units, the total project area, and the total estimated development cost. The direct fees payable to DHSUD (filing fee, processing fee, and inspection fee) typically range from PHP 10,000 to PHP 80,000 or more for large projects.
In addition to DHSUD fees, the developer must also factor in the cost of the performance bond (surety bond premium, which is typically 1-3% of the bond amount per year) or cash escrow deposit (10-20% of the remaining development cost). Other indirect costs include notarization fees, clearance fees from LGUs and other agencies, and professional fees for audited financial statements and engineering plans.
For a mid-sized subdivision project (100-200 lots), the total out-of-pocket cost for the LS application (excluding the performance bond itself) is typically in the range of PHP 50,000 to PHP 200,000. Always request the current DHSUD fee schedule for an accurate computation.
How long is the License to Sell valid?
The validity of the License to Sell varies and is specified in the LS document itself. Typically, an LS is valid for a period of five (5) years from the date of issuance, or until all lots/units covered by the LS have been sold, whichever comes first.
However, the validity period may be shorter if DHSUD imposes specific conditions, such as a requirement to complete the development within a prescribed period. If the LS expires before all lots/units are sold, the developer must apply for a renewal or extension before continuing to sell. Selling after the LS has expired is treated the same as selling without an LS — it is a violation of PD 957.
Developers should monitor the validity period of their LS and file for renewal well in advance of the expiration date to avoid any interruption in sales activities.
Can I sell while my License to Sell application is pending?
No. Under PD 957, it is strictly prohibited to sell or offer to sell any subdivision lot or condominium unit without a valid License to Sell. The mere filing of an LS application does not authorize the developer to commence selling. The developer must wait until the LS is actually issued by DHSUD before engaging in any sales activity.
This prohibition extends to all forms of selling, including accepting reservations with payment, collecting downpayments, executing contracts to sell, or advertising the project as "for sale." Developers who sell during the pendency of their LS application risk criminal prosecution, administrative sanctions, and civil liability to buyers.
However, developers may conduct preliminary marketing activities such as project presentations and informational materials, provided no binding commitments or payments are solicited or accepted from prospective buyers.
What happens if I sell without a License to Sell?
Selling subdivision lots or condominium units without a valid License to Sell is a criminal offense under PD 957. The consequences include:
- Criminal penalties: Fine of up to PHP 20,000 and/or imprisonment of up to 10 years for each offense
- Administrative sanctions: Revocation of the developer's Certificate of Registration, cease and desist orders, suspension of operations, and blacklisting from future DHSUD transactions
- Civil liability: Buyers may demand a full refund of all payments made, plus interest and damages. The contract to sell or deed of sale may be declared void or voidable at the option of the buyer
- Reputational damage: DHSUD may publish the names of erring developers, causing significant harm to the developer's business reputation
Buyers are advised to always verify the developer's License to Sell with DHSUD before making any payment or signing any contract. The LS number should be displayed in the project's sales office and included in all advertisements.
Do I need a separate License to Sell for each phase?
Yes. If a subdivision or condominium project is developed in multiple phases, the developer must obtain a separate License to Sell for each phase. Each phase is treated as a distinct project for LS purposes, with its own set of requirements, including a separate performance bond.
For example, if "Sunrise Heights Subdivision" is being developed in three phases (Phase 1: 150 lots, Phase 2: 120 lots, Phase 3: 100 lots), the developer must file three separate LS applications and obtain three separate Licenses to Sell. The developer cannot sell lots in Phase 2 using the LS issued for Phase 1.
This requirement ensures that DHSUD can monitor the development progress of each phase independently and that the performance bond for each phase accurately reflects the remaining development cost for that specific phase.
Can the License to Sell be revoked?
Yes. DHSUD has the authority to suspend or revoke a License to Sell under the following circumstances:
- The developer fails to develop the project in accordance with the approved plan within the prescribed period
- The developer engages in fraudulent practices or misrepresentation in selling lots/units
- The developer violates the terms and conditions of the License to Sell
- There is a valid and final order from DHSUD or the courts requiring the suspension or revocation of the LS
- The developer fails to maintain the required performance bond or escrow deposit
- The developer sells lots/units at prices exceeding the approved price list without DHSUD approval
- Multiple unresolved complaints from buyers are filed against the developer
If the LS is revoked, the developer must immediately cease all sales activities. Buyers of lots/units sold under the revoked LS may exercise their rights under PD 957, including demanding a refund or specific performance.
What is the performance bond requirement?
The performance bond is a financial guarantee required by PD 957 and enforced by DHSUD to ensure that the developer will complete the development of the project's infrastructure and amenities as shown in the approved plan. The key details of the performance bond requirement are:
- Amount: Typically 10-20% of the estimated remaining development cost of the project. The exact percentage is determined by DHSUD based on the project's development status at the time of LS application
- Form: May be posted as a surety bond from a DHSUD-accredited insurance/bonding company, or as a cash escrow deposit in a bank designated by DHSUD
- Coverage: The bond covers the completion of roads, drainage, water supply system, electrical system, open spaces, parks, playgrounds, and other infrastructure and amenities
- Duration: The bond remains in effect until the project development is completed as certified by DHSUD
- Release: The developer may apply for the release or reduction of the bond as development milestones are achieved, subject to DHSUD inspection and approval
- Forfeiture: If the developer fails to complete the project, DHSUD may forfeit the bond and use the proceeds to fund the completion of the development
How do I renew or amend my License to Sell?
Renewal: If the License to Sell is about to expire and there are still unsold lots/units covered by the LS, the developer must file a renewal application with DHSUD before the expiration date. The renewal process is similar to the original application but may require updated documents such as:
- Updated audited financial statements
- Updated development status report
- Renewed or updated performance bond/escrow deposit
- Updated price list (if prices have changed)
- Updated tax clearance from BIR
- Report on lots/units sold under the previous LS
Amendment: If there are changes to the project that affect the terms of the LS (such as changes to the approved plan, changes in the developer's corporate structure, changes in pricing, or addition/removal of lots/units), the developer must apply for an amendment to the LS. The amendment application must include:
- Letter-request describing the proposed amendment
- Supporting documents for the amendment (e.g., amended plan, board resolution, updated price list)
- Payment of amendment fee as assessed by DHSUD
Both renewal and amendment applications are filed at the same DHSUD office that issued the original LS.
Typical Processing Timeline
The following is an estimated timeline for the License to Sell application process. Actual processing times may vary depending on the DHSUD office, the completeness of requirements, and the complexity of the project.
| Stage | Estimated Duration | Notes |
|---|---|---|
| Project Registration (CR issuance) | 15-30 working days | Prerequisite to LS application; must be completed first |
| Securing Clearances and Permits | 30-90 days | Depends on LGU and other agencies; can be done in parallel with project registration |
| Document Preparation | 5-15 working days | Gathering, preparing, and notarizing all required documents |
| Filing and Fee Payment | 1 day | Submission of application and payment of assessed fees |
| DHSUD Evaluation | 15-30 working days | Document review and compliance check by DHSUD evaluators |
| Site Inspection | 5-15 working days | Scheduling and conduct of site inspection; preparation of inspection report |
| Additional Compliance (if needed) | 5-30 working days | Depends on the nature and number of additional requirements |
| Performance Bond Posting | 5-10 working days | Securing and submitting the surety bond or escrow deposit |
| LS Issuance | 5-10 working days | Approval, signing, and release of the License to Sell |
| Total Estimated Time | 30-60 working days | From LS application filing to issuance (excludes project registration and clearance acquisition) |
Tips for Faster Processing
- Complete your requirements before filing. The single biggest cause of delays is incomplete documentation. Double-check all requirements against the DHSUD checklist before submitting your application.
- Secure clearances in parallel with project registration. While waiting for the project CR, work on obtaining all the required LGU and national agency clearances. This can save weeks of processing time.
- Engage a DHSUD-accredited bonding company early. Start the process of securing your performance bond before filing the LS application, so it is ready when DHSUD requests it.
- Ensure your financial statements are current. Outdated financial statements are a common reason for returned applications. Have your AFS prepared and audited promptly after your fiscal year-end.
- Coordinate with the DHSUD office before filing. Visit or contact the DHSUD regional office to confirm the current requirements, fee schedule, and any recent changes to procedures.
- Be available for the site inspection. Ensure that the developer or an authorized representative is available at the project site when DHSUD schedules the inspection. Delays in the site inspection directly delay the LS issuance.
- Respond promptly to compliance notices. If DHSUD issues a notice for additional requirements, comply as quickly as possible. Delayed compliance can result in the archiving of your application.
- Consider using DHSUD e-services (if available). Some DHSUD offices offer electronic filing and tracking. E-filing can expedite the process and provide real-time status updates.
For Buyers: How to Verify a License to Sell
If you are a homebuyer or lot buyer, always verify that the developer has a valid License to Sell before making any payment or signing any contract. Here is how you can verify:
Ask the Developer for the LS Number
Request the License to Sell number from the developer. The LS number should be displayed in the project sales office, included in advertisements, and stated in the Contract to Sell. If the developer cannot provide an LS number, this is a red flag.
Verify with DHSUD
Contact the DHSUD regional office or central office to verify the validity of the License to Sell. You can visit in person, call the DHSUD hotline, or check the DHSUD website/e-services portal (if available). Provide the LS number and project name for verification.
Check the LS Details
When verifying, confirm the following: the LS is still valid (not expired or revoked), the project name and location match, the lot/unit you are buying is covered by the LS, and the selling price is within the approved price range. If anything does not match, do not proceed with the purchase until the discrepancy is resolved.
Buyer Protection Tip: Under PD 957, you have the right to demand proof of the License to Sell from any developer before entering into a contract. If a developer refuses to show the LS or claims it is "being processed," exercise extreme caution and consider looking for another project with a valid LS. Purchasing from an unlicensed developer exposes you to the risk of fraud, delayed or unfinished development, and difficulty in obtaining title to your property.
Important Reminders
- A License to Sell is mandatory before any sale or offer to sell subdivision lots or condominium units to the public. Selling without an LS is a criminal offense under PD 957.
- The LS is project-specific and phase-specific. Each project and each phase requires its own separate License to Sell application.
- The performance bond or escrow deposit is a critical requirement that guarantees the completion of the project's infrastructure and amenities. Without it, the LS will not be issued.
- Processing time for LS applications is typically 30-60 working days from the date of filing, assuming all requirements are complete. Delays are usually caused by incomplete documentation.
- Always confirm the latest requirements and fee schedule with the DHSUD regional office before filing. Requirements may be updated through administrative orders or memorandum circulars.
- The License to Sell number must be displayed prominently in the project sales office and included in all advertisements, marketing materials, and contracts to sell.
- Buyers should always verify the LS with DHSUD before making any payment or signing any contract. This is your primary protection against unscrupulous developers.
- Keep all documents, receipts, and correspondence related to your LS application. These serve as proof of compliance in case of disputes or audits.
- DHSUD offices are open Monday to Friday, 8:00 AM to 5:00 PM, except holidays. Some services may be available online through the DHSUD e-services portal.
- For questions, clarifications, or assistance with your LS application, contact the DHSUD regional office with jurisdiction over the project location, or visit the official DHSUD website at https://dhsud.gov.ph.
Need Help?
DHSUD Central Office
- Address: DHSUD Building, Kalayaan Avenue corner Mayaman Street, Diliman, Quezon City
- Phone: (02) 8424-4080
- Website: https://dhsud.gov.ph
- Office Hours: Monday to Friday, 8:00 AM to 5:00 PM
DHSUD Regional Offices
DHSUD has regional offices in all administrative regions of the Philippines. For License to Sell applications, file at the regional office with jurisdiction over the project location.
- Regional Office Directory: DHSUD Regional Offices
- E-Services: DHSUD E-Services Portal
Disclaimer
This tutorial is provided for general informational purposes only and does not constitute legal advice. The information contained herein is based on publicly available DHSUD regulations and guidelines. Requirements, fees, and procedures may change without prior notice. For the most current and accurate information, please consult directly with the DHSUD office or seek the advice of a qualified legal professional specializing in Philippine real estate law.
Disclaimer
This guide is provided for general informational purposes only. The requirements, steps, fees, and procedures mentioned here may vary depending on the DHSUD you visit. We recommend visiting your nearest DHSUD first to confirm the specific requirements and process before preparing your documents.