Property investments are a type of highly capital intensive and if you make any mistake during the entire process, it can cause a lot of trouble for you. Therefore, you must always exercise the necessary caution when checking property documents. Although the land is a physical asset, a claim of ownership just can’t prove it. Rather, it is important to validate things by several documents, which can prove the ownership status of the property.
According to the property laws in the Philippines, the property developer has to get different documents and permits before offering any real estate property to the property-selling market. One of the important permits that have to be secured here is the license to sell the property. This works as the assurance for the property buyer that he/she would get the desired home.
But often people neglect to check these details or they are unaware of how to verify all these details. So, to help you out, in this blog, we will offer some important questions that you have to ask the seller to ensure he has the right seller’s accreditation to sell the property.
Check Sellers Accreditation Before Buying a Property in the Philippines. As real estate property is one of the biggest purchases you can make in your entire life, you have to go beyond the brochure and have to delve deeper before settling for buying a house or a condo for sale Philippines.
What Is the License to Sell a Property in the Philippines?
The License to Sell or LTS is an important certification acquired by property developers from the HLURB (Housing And Land Use Regulatory Board). This certification declares that:
• Such dealer or property owner to whom a registration certification has been issued must not, however, be certified to sell any condo unit or subdivision lot in the registered project unless the person has obtained a license first for selling the project within two weeks starting from the registration of the project.
• It works as proof that the developer legitimately performs his job and he is also financially stable for completing the project, which he is planning to sell. This thing also ensures that the specifications and plans of the property meet the agency’s standards. And it is a genuine offer.
Why Is It Necessary to Check the License to Sell Before Buying a Property?
Checking the License to Sell is an important part of the due diligence of a home buyer. It is important to verify all the details to ensure that the developer is approved by HLURB for selling the projects. And this can help you avoid all the issues in the future. Besides, this way, you can learn whether the developer can deliver quality development.
As real estate property is one of the biggest purchases you can make in your entire life, you have to go beyond the brochure and have to delve deeper before settling for buying a house or a condo for sale Philippines.
When Should You Check for the License to Sell the Property?
When you decide to buy a property, you have to check the developer’s License to Sell first after hunting the house and searching for the details regarding your potential selection. Never fall for the fancy artists’ rendition or pretty façade of the property. What good would it do to come across your dream property, only to learn that the developer or dealer doesn’t have the License to Sell?
How to Verify the Legitimacy of the License to Sell a Property?
As a homebuyer, you can visit the nearby regional agency of the HLURB that has the authority over the place where your property is positioned. The agency will also verify the details online for all the lists of projects with a genuine Certificate of Registration or License to Sell and even the projects with any encumbrances.
Who Issues the License to Sell?
The License to Sell is a contract issued by the HLURB. This is mainly a government agency that mandates preparing plans for regulating land or housing developments and homeowner’s association, comprehensive use of lands. Besides, it also works as an intermediary for disputes.
Importance of a Temporary License to Sell or Tlts?
The TLTS or Temporary License to Sell is a contract issued by HLURB and offered to the property developers for performing marketing activities to test whether the property market is viable for their projects. But the TLTS is valid just for six months. In case the project is deemed successful, then the developer has to submit the Building Permit for constructing the property.
Impacts of Purchasing a Property Without the License to Sell
You can either choose to cancel the property-buying contract and demand for refund or can proceed with the sale. The sale will still be valid, but here the developer has to pay the penalties.
When to Sign the Contract of Agreement?
Once you check the License to Sell, discuss the terms of the sale, the fees, and the commission with the seller. Besides, scrutinize the important documents to ensure that the land is free from loans, liens, and encumbrances and that the title meets the condition.
Related Blog: Pros and Cons of Investing in an RFO House and Lot in the Philippines
