Title II

REGISTRATION AND LICENSE TO SELL

Section 3. National Housing Authority The National Housing Authority shall have exclusive
jurisdiction to regulate the real estate trade and business in accordance with the provisions of this
Decree.

Section 4. Registration of Projects The registered owner of a parcel of land who wishes to convert
the same into a subdivision project shall submit his subdivision plan to the Authority which shall act
upon and approve the same, upon a finding that the plan complies with the Subdivision Standards'
and Regulations enforceable at the time the plan is submitted. The same procedure shall be
followed in the case of a plan for a condominium project except that, in addition, said Authority shall
act upon and approve the plan with respect to the building or buildings included in the condominium
project in accordance with the National Building Code (R.A. No. 6541).

The subdivision plan, as so approved, shall then be submitted to the Director of Lands for approval
in accordance with the procedure prescribed in Section 44 of the Land Registration Act (Act No. 496,
as amended by R.A. No. 440): Provided, that it case of complex subdivision plans, court approval
shall no longer be required. The condominium plan as likewise so approved, shall be submitted to
the Register of Deeds of the province or city in which the property lies and the same shall be acted
upon subject to the conditions and in accordance with the procedure prescribed in Section 4 of the
Condominium Act (R.A. No. 4726).

The owner or the real estate dealer interested in the sale of lots or units, respectively, in such
subdivision project or condominium project shall register the project with the Authority by filing
therewith a sworn registration statement containing the following information:

(a) Name of the owner;

(b) The location of the owner's principal business office, and if the owner is a non-resident
Filipino, the name and address of his agent or representative in the Philippines is authorized
to receive notice;

(c) The names and addresses of all the directors and officers of the business firm, if the
owner be a corporation, association, trust, or other entity, and of all the partners, if it be a
partnership;

(d) The general character of the business actually transacted or to be transacted by the
owner; and

(e) A statement of the capitalization of the owner, including the authorized and outstanding
amounts of its capital stock and the proportion thereof which is paid-up.

The following documents shall be attached to the registration statement:

(a) A copy of the subdivision plan or condominium plan as approved in accordance with the
first and second paragraphs of this section.

(b) A copy of any circular, prospectus, brochure, advertisement, letter, or communication to

(c) In case of a business firm, a balance sheet showing the amount and general character of
its assets and liabilities and a copy of its articles of incorporation or articles of partnership or
association, as the case may be, with all the amendments thereof and existing by-laws or
instruments corresponding thereto.

(d) A title to the property which is free from all liens and encumbrances: Provided, however,
that in case any subdivision lot or condominium unit is mortgaged, it is sufficient if the
instrument of mortgage contains a stipulation that the mortgagee shall release the mortgage
on any subdivision lot or condominium unit as soon as the full purchase price for the same is
paid by the buyer.
The person filing the registration statement shall pay the registration fees prescribed therefor by the
Authority.

Thereupon, the Authority shall immediately cause to be published a notice of the filing of the
registration statement at the expense of the applicant-owner or dealer, in two newspapers general
circulation, one published in English and another in Pilipino, once a week for two consecutive weeks,
reciting that a registration statement for the sale of subdivision lots or condominium units has been
filed in the National Housing Authority; that the aforesaid registration statement, as well as the
papers attached thereto, are open to inspection during business hours by interested parties, under
such regulations as the Authority may impose; and that copies thereof shall be furnished to any party
upon payment of the proper fees.

The subdivision project of the condominium project shall be deemed registered upon completion of
the above publication requirement. The fact of such registration shall be evidenced by a registration
certificate to be issued to the applicant-owner or dealer.

Section 5. License to sell. Such owner or dealer to whom has been issued a registration certificate
shall not, however, be authorized to sell any subdivision lot or condominium unit in the registered
project unless he shall have first obtained a license to sell the project within two weeks from the
registration of such project.

The Authority, upon proper application therefor, shall issue to such owner or dealer of a registered
project a license to sell the project if, after an examination of the registration statement filed by said
owner or dealer and all the pertinent documents attached thereto, he is convinced that the owner or
dealer is of good repute, that his business is financially stable, and that the proposed sale of the
subdivision lots or condominium units to the public would not be fraudulent.

Section 6. Performance Bond. No license to sell subdivision lots or condominium units shall be
issued by the Authority under Section 5 of this Decree unless the owner or dealer shall have filed an
adequate performance bond approved by said Authority to guarantee the construction and
maintenance of the roads, gutters, drainage, sewerage, water system, lighting systems, and full
development of the subdivision project or the condominium project and the compliance by the owner
or dealer with the applicable laws and rules and regulations.

The performance bond shall be executed in favor of the Republic of the Philippines and shall
authorize the Authority to use the proceeds thereof for the purposes of its undertaking in case of
forfeiture as provided in this Decree.

Section 7. Exempt transactions. A license to sell and performance bond shall not be required in any
of the following transactions:

(a) Sale of a subdivision lot resulting from the partition of land among co-owners and co-
heirs.

(b) Sale or transfer of a subdivision lot by the original purchaser thereof and any subsequent
sale of the same lot.

(c) Sale of a subdivision lot or a condominium unit by or for the account of a mortgagee in
the ordinary course of business when necessary to liquidate a bona fide debt.
 ISSUANCE OF A CERTIFICATE OF REGISTRATION (CR) AND LICENSE TO SELL
(LS) SUBDIVISION/CONDOMINIUM PROJECTS AND OTHER REAL ESTATE
PROJECTS
TIME APPROVING DOCUMENTARY
WORKFLOW PROCESSOR
FRAME AUTHORITY REQUIREMENTS
1. Files application with Steps 1 –
Applicant
supporting documents. 5 (1 day)
2. Checks completeness of
documents.
a. If complete, Records
acknowledges receipt of Officer
application and logs. –
Accomplishes Records
c.
transmittal sheet. Section
Forwards to Regional (RO
Director’s Office –
(RDO). RS)
b. If incomplete, returns to
applicant.
3. Receives and logs Records Officer
documents. Regional
4. Indorses documents to Director’s
Technical Services Group Office (RO –
(TSG). RDO)
Head,
5. Receives documents. Assigns
Technical
documents to processor for
Services Group
evaluation.
(TSG)
6. Evaluates application based
on requirements. Determines
compliance to standard and
guidelines Steps 6 –
a. If with deviation from 7 (1 – 3 Processor
standards and days)
guidelines, issues Notice
of Deficiency in
Requirements.
7. Fills up pro forma Notice to
Processor
Publish
8. Reviews/evaluates documents
Steps 8
and initials. Forwards
–
documents to RDO. Head, TSG
9
9. Reviews/evaluates documents
(1 day)
and signs.
10. Logs out and transmits Steps 10-
documents to Records Section 11 (2-3 RO – RDO
(RS) Days)
2–3 RO
11. Mails/releases Notice to
Weeks –
Publish to the applicant.
Mailing RS
12. Recieves Notice to Publish. Steps 12 – Applicant
13. Publishes Notice to Publish. 13 17
14. Submits Affidavit of days for
Publication. Coordinates with PD 957
processor/inspector for the 13 days
scheduled site inspection. for BP
 220
15. Receives Affidavit of
Publication. After two (2)
consecutive weeks from the last
day of publication, project is Steps 15 –
deemed registered unless 16 (1 – 2 Processor
clearance from legal and Days)
monitoring group requires
compliance to orders issued by
the Office.
16. Conducts site inspection.
Determines extent of
development. Computes
performance bond and
Steps 17 –
processing fee.
18 (1 – 2 Inspector
17. Accomplishes pro – forma
days)
of letter/advice on performance
bond and fee.
18. Reviews/evaluates and
initials.
Steps 19 –
19. Reviews/evaluates
20 (1 – 2 Head, TSG
documents and signs.
days)
20. Logs out and transmits the
RO – RDO
documents to Records Section.
21. Posts performance bond and
submits documents certifying Steps 21 –
Applicant
performance bond/guarantee 24 (1 day)
from Financing institution.
22. Receives documents and
prepares Order of Payment
(OP).
23. Pays processing fee Applicant
24. Receives payment. Prepares
Official Receipt (OR). Issues Cashier
OP and OR to applicant.
25. Evaluates acceptability of
performance bond. Prepares Steps 25 –
Certificate of Registration 29 (3 – 4 Processor
(CR)/License to Sell (LS) and days)
Executive Brief.
26. Reviews/ initials CR/LS.
Head, TSG
Signs Executive Brief.
27. Reviews and affixes
Regional
signature on CR/LS and
Officer
Executive Brief.
28. Logs out documents and
RO – RDO
transmits to Records Section.
29. Releases CR/LS to applicant. RO – RS