HLURB License to Sell – Why do you need to look for it?


A property developer is required to get different permits and documents before they can offer any of their real estate project to the public. One important permit that needs to be secured is a HLURB License to Sell. This is a home buyer’s assurance that he or she will get their dream home. However, most people neglect to double check this information or are unfamiliar on how to verify this. Here’s what you need to know about the it in the Philippines, and why you should make sure your developer has it:

1. What is a License to Sell?

A License to Sell (LTS) is a certification obtained by a property developer from the Housing and Land Use Regulatory Board (HLURB).

The Presidential Decree No. 957 under Section 5 declares:

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

This is a proof that the developer is a legitimate business and is financially stable to complete the project and ensures that the property’s building plans and specifications met the standard of the agency.

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

It is the home buyer’s due diligence to do a background check. This is to avoid future problems with an already HLURB approved developer to sell their project. This is also a means for you to know that the the developer is capable of delivering a quality development.

3. When should you check and verify the License to Sell?

Check the developer’s License to Sell when you go house hunting and look for the information about your potential selection. Homebuyers can check and verify this by visiting the nearest Regional Office of the HLURB. Make sure that Regional Office of the HLURB has the jurisdiction of the place where the property is located. You can also verify this online by checking out the list of projects that have an authentic License to Sell or Certificate of Registration.  Find check out HLURB’s website for more information, and contact details.

4. Who issues the License to Sell?

The License to Sell is issued by the Housing and Land Use Regulatory Board. This is the government agency mandated to formulate plans for comprehensive land use, regulate housing or land developments and homeowners’ associations, and serve as an intermediary for disputes.

5. 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 test if the market is viable to their project. This is valid only for six months. If the project is deemed successful, then the developer must submit a Building Permit for its construction.

6. What happens if you purchase a property that does not have a license to sell?

You 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 need to pay the penalties. The risk in buying a property without license to sell is if the said developer chose to not continue the development for some reason demanding for refund would be quiet difficult. Make sure in all your real estate transactions you have hard copies of the receipts or notarized acknowledgement letter or receipt of the reservation and of the purchase.  Another is the developer may not follow what was shown to you in the brochure which will soon get you into trouble, like drainage system, the promised concrete roads and security.

Indeed, a real estate property is one of the most expensive purchases you’ll ever make in your lifetime so you must go beyond the brochure and delve deeper before you settle for a condominium or a house.

Lisa Marie is a founding member and blogger of Filipino Homes. She is a digital marketing professional who works online from home. She is the travel writer, and digital creative behind  Pinay Travelista and the homemaker, and housewife-in-training behind Life & Some Sorts.