Delayed License-to-Sell Approvals: The Hidden Risk Behind Pre-Selling Condo and Subdivision Projects

DHSUD’s License-to-Sell bottleneck has quietly turned into one of the biggest risks behind pre-selling projects in 2026, especially in fast-growing markets like Cebu.

The License to Sell (LTS) used to be a low-profile regulatory step in Philippine real estate. In 2026, it has become a major chokepoint for bringing new housing supply to market—and a hidden source of risk for buyers reserving pre-selling units.

What’s Happening: LTS Approvals Are Getting Stuck

In Cebu and other growth areas, developers and marketing groups are now openly complaining about delays in the release of Licenses to Sell from the Department of Human Settlements and Urban Development (DHSUD). Some projects with complete requirements have reportedly been waiting months for approval, forcing developers to postpone pre-selling launches that were already in their 2026 pipeline.

Industry leaders are publicly urging DHSUD to fast-track LTS releases, warning that prolonged delays are disrupting new launches and constricting housing supply nationwide. Without an LTS, developers cannot legally sell pre-selling units, regardless of how strong buyer demand is.

Why the LTS Matters So Much for Buyers

By law, a developer must secure both a Certificate of Registration and a License to Sell before it can legally market pre-selling subdivision lots or condominium units. The LTS is meant to protect buyers by confirming that the project has complied with minimum development standards and that the necessary plans and documentation have been submitted.

Any selling activity done before the LTS is granted is essentially premature. Buyers who pay reservation fees or sign contracts at this stage are taking on regulatory risk: if an LTS is delayed or denied, the project may be significantly pushed back—or in the worst case, may never proceed as originally marketed.

For OFWs and end‑user families using long-term installment schemes, that risk can mean:

• Turnover dates slipping by years.

• Uncertainty on when bank or Pag‑IBIG financing will actually take out the balance.

• Difficulty enforcing rights if the project is being marketed without the required license under buyer-protection laws.

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What Developers Want DHSUD to Fix

Developers are not asking for weaker standards; they are asking for predictable timelines and faster processing once requirements are complete. DHSUD has previously signaled intentions to speed up licensing and set ambitious internal timelines for releasing compliant applications, but the on-the-ground experience suggests many projects are still stuck in the pipeline.

If these delays persist, project launches will bunch up later in the year, creating operational strain for developers and leaving buyers with fewer quality options in the near term. Developers also face cash-flow issues and higher holding costs when projects are ready to launch but cannot legally be sold.

How Pre-Selling Buyers Can Protect Themselves in 2026

For buyers and OFWs, the current environment doesn’t mean avoiding pre-selling altogether—but it does mean upgrading due diligence. At a minimum:

• Verify the LTS before going beyond a reservation fee. Ask for the project’s LTS number and verify it with DHSUD or through official channels.

• Confirm the project’s registration status. Make sure there is a valid Certificate of Registration for the specific project, not just for the developer as a company.

• Be cautious with “soft launches.” If you’re told “LTS is coming soon” but there is no actual license yet, treat any payment as high-risk and keep it small.

• Review refund and delay clauses carefully. Some contracts make it difficult to recover your money or offer weak remedies if the project is delayed; consider having a lawyer or trusted advisor review the fine print.

• Know your rights under buyer-protection laws. Selling without a license is a serious violation, and buyers can file complaints with regulators if they suspect a project is being marketed prematurely.

Investor and Seller Implications

For investors who plan to flip contracts or rent out units after completion, LTS delays can derail timelines and projected returns. A one-year slip in turnover moves your rental income and exit window, increases holding costs, and exposes you to more interest-rate risk. Existing owners in projects where new phases are delayed may also find it harder to resell units if buyers question the developer’s regulatory track record.

On the seller side, brokers and agents need to be more careful about promoting inventory without an LTS. Beyond regulatory exposure, pushing unlicensed projects can damage credibility with clients. Being transparent about LTS status in all listings and presentations can become a differentiator for professional sellers.

Source: Ziggurat Real Estate

BSP Holds Rates at 4.25%: What It Means for Home Loan Borrowers

Bangko Sentral ng Pilipinas (BSP) has brought its policy rate down to 4.25% after a series of cuts totaling 225 bps since August 2024, and then decided to hold at that level in a rare off‑cycle meeting in March 2026.

This rate is the benchmark that guides bank lending costs, including housing loans and refinancing packages, so even “small” changes feed directly into monthly amortizations for new and existing borrowers.

In its February 19, 2026 meeting, the Monetary Board cut the target reverse repurchase (RRP) rate by 25 bps to 4.25%, while adjusting the overnight deposit and lending facility rates to 3.75% and 4.75%, respectively, to support an economy still growing slower than hoped.

Trading Economics and other market trackers note that inflation is manageable for now, which gave BSP room to ease, but house views suggest the central bank is likely to keep the policy rate at 4.25% for the rest of the year while monitoring inflation risks.

For property buyers, this creates a window where rates are lower than the 2023–2024 peak but still higher than the ultra‑cheap money era, forcing more careful stress-testing of loan affordability.

For end‑user borrowers comparing bank loans and Pag‑IBIG financing, the current 4.25% policy rate environment means commercial bank housing loan offers may remain relatively stable in the coming months, with limited downside but risk of upside if inflation surprises on the high side.

Investors relying on leverage—such as flippers, rental investors, and those eyeing pre‑selling units with bank financing—must factor these rates into their yield calculations, since even a 25‑bp change can materially affect cash flow and return on equity.

Source: Ziggurat Real Estate

Former Filipino Citizens Can Lawfully Acquire Real Property in the Philippines

The Philippine Constitution is often interpreted as strictly prohibiting foreigners from owning land. While this is generally true, the legal framework tells a more nuanced story—especially for former Filipino citizens.

In fact, former natural-born Filipinos retain a legally recognized pathway to acquire real property in the Philippines. This is not a loophole or workaround. It is a deliberate policy embedded in Philippine law, designed to maintain ties with Filipinos who have acquired foreign citizenship.

Understanding this distinction is critical for overseas Filipinos, balikbayans, and investors navigating the Philippine real estate market.

The Constitutional Rule—and Its Exception

The starting point is the 1987 Constitution, which clearly provides that ownership of private land is reserved for Filipino citizens and corporations that are at least 60% Filipino-owned. This establishes the general rule: foreigners cannot own land.

However, the Constitution itself also creates an important exception. It allows Congress to define circumstances under which former natural-born Filipino citizens may acquire private land.

This is where statutory law comes into play.

The Legal Basis for Ownership

Two key laws govern the rights of former Filipino citizens to own real property:

Batas Pambansa Blg. 185

This law allows former natural-born Filipinos to acquire private land for residential purposes. It recognizes that individuals who were Filipino by birth maintain a continuing connection to the country, even after naturalization abroad.

Under this law, a former Filipino may acquire:

• Up to 1,000 square meters of urban land, or

• Up to 1 hectare of rural land

The property must be used for residential purposes.

Republic Act No. 8179

Republic Act No. 8179 expanded these rights by allowing former natural-born Filipinos to acquire land for business or commercial purposes.

The allowable limits are significantly higher:

• Up to 5,000 square meters of urban land, or

• Up to 3 hectares of rural land

This opened the door for returning Filipinos to actively participate in economic activity, including real estate development and entrepreneurship.

Ownership Limitations Still Apply

While the law grants ownership rights, it does not place former Filipinos on exactly the same footing as current citizens—unless they reacquire citizenship.

Several limitations must be observed:

First, land acquisition is generally limited to a maximum of two lots, and these must be located in different cities or municipalities.

Second, the total land area must not exceed the statutory limits. These limits apply even if the buyer acquires property over time.

Third, if married to a non-Filipino spouse, the total landholding of the couple must still comply with the same ceilings.

These restrictions reflect a balancing act: allowing reconnection and investment, while preserving the constitutional policy of Filipino land ownership.

Condominium Ownership: A Separate Track

Former Filipino citizens also have access to condominium ownership under a different legal regime.

The Condominium Act allows foreigners—including former Filipinos—to own condo units, provided that foreign ownership in the entire project does not exceed 40%.

This means condominium investment is often the simplest entry point for former Filipinos who want fewer legal constraints.

Reacquiring Citizenship: Full Ownership Rights

For former Filipinos who want unrestricted property ownership, the most powerful legal tool is Republic Act No. 9225, also known as the Citizenship Retention and Re-Acquisition Act.

Once Philippine citizenship is reacquired, the individual regains full rights as a Filipino citizen. This includes the ability to acquire land without the area limitations imposed on former citizens.

In practical terms, dual citizenship removes most structural barriers to real estate investment.

Strategic Implications for Investors

The legal framework sends a clear message: the Philippines encourages former Filipinos to reinvest in the country—but within defined boundaries.

For residential buyers, the law provides enough flexibility to build or acquire a home.

For entrepreneurs, Republic Act No. 8179 creates a viable path to own land for business use.

For long-term investors, reacquiring citizenship remains the most strategic move, unlocking full ownership rights and simplifying transactions.

Final Thought

The idea that “foreigners cannot own land in the Philippines” is only half the story.

Former Filipino citizens occupy a unique legal position—one that blends constitutional restriction with statutory privilege. When properly understood, this framework does not hinder investment. It enables it, with clarity and purpose.

Source: Ziggurat Real Estate