The Department of Human Settlements and Urban Development (DHSUD) plays a crucial role in ensuring that all subdivision and condominium projects comply with national housing standards. If you’re a real estate developer or planning to start a project, one of the primary requirements is securing a Certificate of Registration (CR) and a License to Sell (LS) from DHSUD. These are mandatory for developers to legally offer units for sale in the Philippines.
Failing to secure these documents could result in penalties or legal actions, including a Cease and Desist Order, which would halt all marketing and sales activities for your project.
Documentary Requirements
To begin the process of obtaining a CR and LS, the following key documents must be submitted:
- Sworn Registration Statement
- Certified True Copy of the TCT or OCT (land titles)
- Audited Balance Sheet
- Articles of Incorporation and By-laws, including the latest corporate report to the SEC
- Marketing materials (e.g., circulars or brochures for public offering)
- Sample Contract to Sell
- Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC)
- Zoning Certificate
- Certified true copy of DAR Conversion Order or Exemption Clearance
- Electrical Plan and Specifications
- Water Potability Test Results or Permit to operate a deep well
- Project Study and Program of Development signed by a licensed engineer or architect
For condominium projects:
- Duly accomplished and notarized fact sheet.
- Master Deed with Declaration of Registration and Declaration of Restrictions evidenced by the proper annotation thereof in thetitle(s) of the property and the certified true copy of such title(s) from the register of Deeds
- Building Permit
For subdivision projects:
- Verified Survey Returns (two copies)
- Sangguniang Resolution/ Ordinance granting of Development Permit/ Subdivision Development Plan
- Certified true copy of resolution conferring authority to Mayor or other local government official to issue development permit
- Proof of compliance to Sec. 18 of RA 7279
- One (1) set of subdivision development plan
If property is currently mortgaged:
- Mortgagor undertaking
- Mortgagee undertaking
10 Steps to Secure a Certificate of Registration and License to Sell
To help you navigate the process more efficiently, here’s a streamlined 10-step guide that summarizes the more detailed official procedure:
1. Submission of Application
Submit your application and all required documents to DHSUD.
DHSUD’s Records Officer checks the completeness of your submission and logs the application.
2. Preliminary Evaluation
If complete, the application is forwarded to the Housing and Real Estate Development Regulation Division (HREDRD) for evaluation.
If any documents are missing or incorrect, the application will be returned for correction.
3. Assignment to a Processor
HREDRD assigns your application to a processor who evaluates it against the regulatory requirements and housing standards.
4. Issuance of a Notice to Publish
Once your application is deemed compliant, DHSUD issues a Notice to Publish, which must be published in a newspaper.
5. Publication
You must publish the Notice to Publish in an accredited newspaper and submit an Affidavit of Publication back to DHSUD.
6. Site Inspection and Compliance Check
DHSUD conducts a site inspection to verify the development’s progress and compliance.
Based on the inspection, DHSUD computes the required performance bond and processing fees.
7. Issuance of Performance Bond and Fees
You are required to post the performance bond and pay the corresponding processing fee, after which an Official Receipt will be issued.
8. Preparation of the CR and LS
DHSUD processes the issuance of your Certificate of Registration (CR) and License to Sell (LS), which are reviewed by senior officials.
9. Final Approval
The Regional Director reviews the entire application and the associated documents, affixing their signature to approve the issuance of the CR and LS.
10. Release of CR and LS
Once all documentation is in order, DHSUD releases your CR and LS, officially permitting you to market and sell your real estate project.
Disclaimer: All of the information on this website is provided as general information, not as legal advice, nor as a solicitation for legal services. The information is not provided in the course of an attorney-client relationship between Atty. Salma F. Angkaya-Kuhutan and anyone who views it. Viewers should not rely on the information contained in this website when making decisions regarding legal matters but should consult a qualified attorney for legal advice. You should not act based solely on the information found on this website and are strongly advised to seek the legal opinion of a lawyer.
You may contact the Attorney through the information provided on this website if you are interested in the legal representation, counseling, and related legal services that we provide. You may also be interested to learn more about our real estate transaction services.
