A holding programmer is required to go unlike permits and documents before they tin offer any of their existent estate project to the public. One important let that needs to exist secured is a License to Sell. This is a home buyer's balls that he or she will become their dream habitation.

However, almost people neglect to double bank check this information or are unfamiliar on how to verify this.

Here's what you need to know nigh the License to Sell in the Philippines, and why y'all should brand sure your developer has it:

1. What is a License to Sell?

A License to Sell (LTS) is a certification obtained past a property developer from the Housing and Land Use Regulatory Board (HLURB). The Presidential Prescript No. 957 under Section v declares:

Such owner or dealer to whom has been issued a registration document shall not, however, be authorized to sell any subdivision lot or condominium unit in the registered projection unless he shall have kickoff obtained a license to sell the project within two weeks from the registration of such project.

Information technology is a proof that the developer has a legitimate business and is financially stable to complete the project that they are selling. This is ane way of ensuring that the property's building plans and specifications have met the standard of the agency, plus that it is a genuine one.

2. Why is it important for check the License to Sell before buying a property?

Checking for the License to Sell is a crucial part of any home buyer's due diligence. To avoid problems in the time to come, it is necessary to verify that the developer is approved by HLURB to sell their project. This is for you to know that they are capable of delivering a quality development.

Indeed, a existent estate holding is one of the about expensive purchases you'll ever make in your lifetime so yous must go beyond the brochure and delve deeper before yous settle for a condominium or a business firm.

3. When should you lot check for the License to Sell?

Make sure to first check for the programmer'southward License to Sell equally yous go business firm hunting and wait for the data most your potential selection. Don't fall for the pretty façade or fancy artists' rendition of the property. What good will it practise to finally come across your dream home, but to find out the developer doesn't have a License to Sell?

4. How do you verify if the License to Sell of a property developer is legitimate?

Homebuyers can visit the nearest Regional Office of the HLURB which has jurisdiction of the place where the holding is located. They can also verify this online for the list of projects that have an authentic License to Sell or Certificate of Registration, and even those which may have any encumbrances.

Find out the of import regional numbers in HLURB'due south website.

5. Who issues the License to Sell?

The License to Sell is issued past the Housing and Country Use Regulatory Lath. This is the government bureau mandated to codify plans for comprehensive land use, regulate housing or state developments and homeowners' associations, and serve every bit an intermediary for disputes.

6. What is the purpose of a Temporary License to Sell?

The Temporary License to Sell (TLTS) is issued by HLURB to property developers to allow property developers to conduct marketing activities to examination if the market is feasible to their project. This is valid only for 6 months. If the project is deemed successful, and so the developer must submit a Building Permit for its construction.

7. What happens if you purchase a property that does not accept a license to sell?

You lot may choose to cancel the contract and demand for a refund or proceed with the sale. The sale is still valid, but the developer will demand to pay the penalties.

Exist a Smarter Abode Buyer

Prevention is better than facing legal problems in the future. Make sure you have verified the property programmer's License to Sell, specially if you are planning to buy a pre-selling property. You don't want to fall victim to a existent estate scam, and lose all your hard-earned money on a simulated country title.

Recently, the HLURB released Board Resolution No. 922 to further protect homebuyers. It requires developers to get approval from the HLURB before they tin release an advertisement. The objective states:

[It] aims to ensure that the public and prospective buyers of any lot including whatsoever building or improvements thereon, or any unit in a project are protected from fraudulent practices and manipulations through close supervision and regulation of persons engaged in the do of real estate service with a project.

Do you know property developers selling condominiums, nevertheless don't have LTS? Help others be a smart home buyer and share your information in the comment box below.


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