License to Sell, developer, payment plan, contract – what to check
Buying a house or a lot that isn't finished yet is completely normal in the Philippines. It's called pre-selling: you secure a unit early, often at a better price, and pay in instalments while it's being built.
Sounds good. But what you're really buying is a promise. Construction gets delayed, the project changes, or the developer runs out of money. All of that has happened. A few checks up front put you on the safe side.
This should be your very first question. Look for two documents:
Many subdivision and condominium projects fall under Presidential Decree No. 957, and the licence is issued by the Department of Human Settlements and Urban Development (DHSUD). It shows the project meets the rules. It isn't a guarantee that it will be finished on time.
Take a close look at the developer:
Our tip: visit a finished project by the same developer and talk to people who live there. You'll learn more than from any brochure.
Have the payment plan explained in detail. What does the unit cost in total, with all fees, taxes and connection charges?
Are the instalments tied to fixed dates or to construction progress? And how is progress shown? Can you check it yourself, or have someone independent check it?
Don't be tempted by a "today only" discount or an extra-low reservation fee. Get a written receipt for every payment and keep all of them.
The contract should state clearly when you'll get your property, and what happens if it takes longer. Pay particular attention to:
What's in the brochure or what someone promised you verbally doesn't count. What counts is what's in the signed contract, and the rights the law gives you.
Two laws can matter to you: Presidential Decree No. 957 and the Realty Installment Buyer Protection Act (Republic Act No. 6552, also known as the "Maceda Law").
PD 957 protects buyers in certain subdivision and condo projects. Under certain conditions you have claims if the project isn't delivered as agreed. RA 6552 protects certain buyers who pay in instalments, for example if they fall behind or the contract is cancelled.
Which rights apply in your case depends on the purchase, the contract and the circumstances. You're not always automatically entitled to a full refund.
So have the contract checked by an independent Philippine lawyer before you sign, especially with a large down payment or a long instalment plan.
Genessa Nacional is your personal point of contact — a Real Estate Consultant in the Filipino Homes network, one of the largest real estate networks in the Philippines, working nationwide with a focus on Dumaguete, Valencia, Bacong, Dauin, and Sibulan. Behind the scenes, several Philippine lawyers support the review of land titles and contracts — so you are never on your own during the process.
Buying from a developer before completion doesn't have to be risky. What matters is that you check the permits, look closely at the developer, and really understand the payment plan, turnover date and cancellation rights.
Never buy because of pretty pictures and big promises. An independent check of the documents and the contract protects you from expensive surprises.
Note: This guide is general information and doesn't replace legal advice. For a specific project, please check with the DHSUD and a qualified lawyer.
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