The Market Monitor Minding the Nation's Business
By: Romeo Sualibios
The Department of Human Settlements and Urban Development (DHSUD) has warned Filipinos looking to buy homes against dealing with unlicensed property resellers, expired-license holders and unregistered real estate brokers and salespersons, saying buyers risk losing their hard-earned money when transactions are made with unauthorized sellers.
DHSUD Undersecretary Marisol Ananias said complaints involving unauthorized sellers have become a major concern for the agency because it becomes more difficult for the government to intervene once buyers hand over their money to people who are not properly registered. “If you part with your hard-earned money with somebody who is not registered, we cannot police, we cannot go after them,” Ananias said.
The warning is particularly important for buyers of pre-selling subdivision lots and condominium units, where large amounts of money are often paid before the property is completed. Under government regulations, subdivision projects and condominium projects must first be registered with the DHSUD and obtain a License to Sell before they can legally be offered to the public.
The DHSUD said buyers should not rely solely on advertisements, social media posts or representations made by agents. The department advises prospective buyers to ask for the project’s Certificate of Registration and License to Sell and verify these documents with the appropriate DHSUD regional office before making any payment.
Buyers should also check whether the broker or salesperson handling the transaction is properly licensed or accredited. The DHSUD maintains a public list of registered real estate brokers and salespersons, while the Professional Regulation Commission regulates the professional licenses of real estate practitioners.
The DHSUD’s License to Sell is issued only to projects that have approved subdivision or condominium plans and comply with prescribed standards covering such matters as lot sizes, floor areas, open spaces, roads, sidewalks, drainage and other facilities. This requirement is intended to provide buyers with regulatory protection before projects are marketed and sold.
The department has made verification tools available to the public, including its online list of projects with licenses to sell and its list of registered brokers and salespersons. Buyers can also approach DHSUD regional offices when records are unclear or when they need confirmation of a project’s status.
DHSUD urged homebuyers to treat verification as a necessary step before signing contracts or releasing money, particularly when sellers pressure them to make immediate payments or offer unusually attractive deals