Why a License to Sell is Non-Negotiable in Property Sales
The Philippine real estate market continues to expand, giving Filipinos more opportunities to invest in their dream homes and properties. But along with its growth comes a serious risk: scams and illegal property sales. At the center of these issues is one crucial requirement that every buyer should look for and every seller must secure—the License to Sell (LTS).
Recently, a subdivision scam in Cavite made headlines after the National Bureau of Investigation (NBI) arrested individuals accused of selling lots in an unregistered subdivision project. Details of the operation—including the names of those arrested—can be found in the official NBI press release. For our discussion here, what’s more important is the bigger lesson: never engage in property transactions without verifying the License to Sell.
What is a License to Sell (LTS)?
Under Presidential Decree No. 957—the Subdivision and Condominium Buyers’ Protective Decree—a developer cannot legally sell subdivision lots or condominium units without first securing a Certificate of Registration and a License to Sell from the Department of Human Settlements and Urban Development (DHSUD).
👉 You may read the full text of PD 957 here.
The LTS acts as proof that:
- The subdivision or condominium project has been duly evaluated by DHSUD.
- The developer has complied with basic requirements (such as land title, project plans, and financial capability).
- The project is deemed safe and legitimate for buyers to invest in.
Without this license, any sale or marketing of property is illegal.
Why It Matters for Buyers
Many Filipinos dream of owning a home, but unfortunately, scams and illegal sales can turn that dream into a nightmare. Without an LTS, buyers are exposed to risks such as:
- Losing hard-earned money to fraudulent schemes.
- Buying into projects that may never be completed.
- Facing legal complications if the property is later proven to be illegally sold.
Before paying any reservation fee, down payment, or installment, buyers must always:
- Verify with DHSUD if the project is registered.
- Check if the developer has an active License to Sell.
- Ask for documents and proof of compliance.
Why It Matters for Developers and Sellers
For developers, brokers, and salespersons, compliance with PD 957 is not just a legal obligation—it is also a matter of protecting reputation and building trust. Selling without an LTS exposes them to:
- Criminal charges under PD 957 and the Revised Penal Code.
- Possible cease-and-desist orders from DHSUD.
- Loss of credibility in the real estate industry.
In short, securing an LTS is not just about following the law; it’s about safeguarding both the business and the buyers’ welfare.
The Bigger Picture
The Cavite case is just one example of what can go wrong when property sales happen without the proper license. Authorities continue to remind both sellers and buyers that the law exists for a reason—to prevent scams, protect investments, and ensure that every Filipino family who dreams of owning a home can do so safely.
Conclusion: Mag-ingat, Magtanong, Mag-verify
Kung balak mong bumili ng lote o bahay, tandaan: “Walang License to Sell, walang bentahan.”
Kahit gaano kaganda ang offer o gaano kababa ang presyo, kung walang LTS, hindi ligtas ang investment mo. The LTS is your guarantee that the project is government-approved, legitimate, and worth your money.
Sa madaling salita: “Bago magbayad, siguraduhin muna.” Dahil sa real estate, hindi lang bahay ang nakataya—kundi pati ang pinaghirapan mong pera at ang pangarap ng pamilya mo.
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