License to Sell

Also known as: DHSUD License to Sell · LTS Permit · HLURB License to Sell

Definition

License to Sell (LTS), in the Philippines, is a mandatory regulatory permit issued by the Department of Human Settlements and Urban Development (DHSUD) to real estate developers. Under Presidential Decree No. 957 and Batas Pambansa Blg. 220, developers are legally prohibited from selling, offering for sale, or advertising any subdivision lot or condominium unit to the public without first obtaining an LTS. The permit certifies that the developer has met all legal requirements, registered the project, submitted proof of land ownership, and posted a performance bond to guarantee project completion. (Wikipedia, LTS Govt)

Identities

Source Type	Identity
Wikipedia	Presidential Decree 957
Wikidata	N/A
DBpedia	N/A
ProductOntology	N/A
Wiktionary	N/A
Library of Congress Subject Headings (LCSH)	N/A
MeSH	N/A
NCBI Taxonomy	N/A
AGROVOC	N/A
Google Scholar	License to Sell LTS DHSUD PD 957 real estate developer Philippines
ConceptNet	N/A
OpenCyc	N/A

Also Known As

DHSUD License to Sell
LTS Permit
HLURB License to Sell

Examples and Analogies

Subdivision LTS: A permit issued to a developer authorizing the sale of house-and-lot packages in a gated community project.
Condominium LTS: A permit issued to a vertical housing developer authorizing the sale of pre-selling condo units in a tower.

Usage Scenarios

1. Verifying an LTS before purchase

A home buyer asks the developer for the LTS number of a pre-selling condo and verifies its validity on the DHSUD website. (Source)

2. Filing a complaint for selling without LTS

A buyer files a complaint at DHSUD after finding that a developer sold subdivision lots before securing an LTS. (Source)

Strategies

Never sign a Contract to Sell or pay reservation fees for projects that have not secured a valid DHSUD License to Sell.
Always check that the LTS number is clearly printed on all advertising materials and brochures of the real estate project.

Security and Safety Measures

Ensure that payments are made to the developer’s registered corporate name, as specified in the LTS document.
Verify that the performance bond posted by the developer is active to protect against construction abandonment.

Historical Context

The requirement for a License to Sell was established under Presidential Decree No. 957 in 1976 to protect buyers from rampant real estate fraud, double-selling, and project abandonment. Administration was managed by the National Housing Authority (NHA), then the Housing and Land Use Regulatory Board (HLURB). In 2019, under Republic Act No. 11201, the DHSUD took over the issuance and regulation of the LTS, strengthening consumer protections and developer fines. (Wikipedia) (Source)

Challenges and Controversies

Long Processing Timelines

Developers often face delays in securing an LTS due to the multiple local and national clearance documents required.

Illegal Pre-Selling

Unlicensed developers sometimes bypass the law by marketing units as ‘letters of intent’ or ‘expressions of interest’ before the LTS is issued.