06/07/2025
⚖️❗️❗️ Nakabili ka ng Lupa at nag invest ka sa housing project ni Developer dahil nakita mo maganda pagka market nila sa social media pero nalaman mo wala itong License to Sell (LTS). Can I Get My Refund? Alamin ano ito at yung pwede mong gawin❗️⚖️
The answer is a resounding YES. and here’s why.
What is a License to Sell (LTS)?
A License to Sell (LTS) is a government-issued permit granted by the Department of Human Settlements and Urban Development (DHSUD) that legally allows a real estate developer or project owner to sell subdivision lots or condominium units to the public.
It is a mandatory requirement under Presidential Decree No. 957 (Subdivision and Condominium Buyers’ Protective Decree).
Real estate buyers are becoming more vigilant and for good reason. Imagine paying for a pre-selling unit for months, only to discover that the developer NEVER had a License to Sell (LTS) from the Department of Human Settlements and Urban Development (DHSUD). At this point, many ask:
“Can I cancel and demand a refund?”
The law offers strong protection but your actual remedy depends on key facts, including the nature of the contract, the status of the project, and your payment timeline.
Legal Foundation:
1. Presidential Decree No. 957 which is the Subdivision and Condominium Buyers’ Protective Decree
Section 5 of P.D. 957 makes it clear:
“No owner or developer shall sell any subdivision lot or condominium unit in the Philippines without obtaining a License to Sell from the proper agency.”
This means a sale without LTS is illegal from the start.
Buyers are not bound to honor an illegal or unauthorized contract.
2. Section 20 of P.D. 957
Violations may result in sanctions, penalties, and other legal consequences for the developer or agent. This can also open the door for civil and even criminal liability.
3. Article 1409, Civil Code – Void Contracts
Contracts that involve an unlawful cause or object, such as a sale prohibited by law, are null and void from the beginning.
In short: You may not be bound to continue paying for an illegal contract.
Maceda Law Misuse:
Developers sometimes invoke Republic Act 6552 (Maceda Law) to limit your refund but here’s the truth:
Maceda Law protects buyers in valid installment contracts. If the developer has no LTS, the contract itself may not be legally valid, and the Maceda Law doesn’t apply.
KVP TIPS:
If a buyer unknowingly enters into a contract with a developer operating without an LTS, and later discovers the illegality:
✅ You may have the right to rescind the contract
✅ Demand a full or substantial refund
✅ File a DHSUD complaint and/or civil case
✅ Possibly initiate criminal proceedings if there’s deceit
But remember: the outcome depends on documentation, evidence, and timing. Not all refund cases are alike. Some buyers fall under special exceptions—others must take legal steps to assert their rights.
Bottom Line:
Developers must secure an LTS before accepting payments or signing contracts. If you’ve been affected by a seller operating without it, you have legal rights but you need to act strategically and with counsel.
Don’t rely on sales talk or promises.
Don’t sign anything without confirming the LTS.
Don’t wait until it’s too late.
Deal with a reputable Real Estate Developer, ask the assistance of a trusted and license Real Estate Professional for your property investment
RED FLAGS TO WATCH OUT FOR:
1. No visible DHSUD LTS number on brochures or websites
2. Promises of “fast turnover” without showing any legal documents
3. Asking for payments before issuance of LTS
4. Salespersons pressuring you to reserve “before permits are out”
