Certificate of Registration (CR) is a mandatory credential issued by the Department of Human Settlements and Urban Development (DHSUD) that authorizes real estate developers to legally operate subdivision and condominium projects in the Philippines.
Key Provisions
- Legal Mandate: Under Presidential Decree No. 957 (Subdivision and Condominium Buyers' Protective Decree), all developers must secure a CR before marketing or selling any unit in their projects.
- Pre-Requisite to Selling: A CR alone does not authorize sales. Developers must also obtain a License to Sell (LTS) to legally collect payments from buyers.
- Project-Specific: Each CR covers a specific development project. A developer with multiple projects must secure separate CRs for each.
- Validity: The CR remains valid as long as the developer complies with DHSUD requirements and the project adheres to approved development plans.
- Public Notice Requirement: Before issuance, developers must publish a Notice to Publish in a newspaper of general circulation for two consecutive weeks.
Who is Affected?
- Real Estate Developers operating subdivision or condominium projects under PD 957 or BP 220
- Real Estate Brokers and Salespersons who must verify developer credentials before partnering
- Property Buyers who should confirm a developer's CR and LTS before signing any Contract to Sell
- Financing Institutions that require valid CRs before approving mortgages on pre-selling units
Documentary Requirements
To obtain a CR, developers must submit:
- Sworn Registration Statement
- Certified True Copy of TCT or OCT from the Register of Deeds
- Duly audited Balance Sheet
- Articles of Incorporation and SEC filings
- Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage
- Zoning Certificate
- DAR Conversion Order or Exemption Clearance (if applicable)
- Sample Contract to Sell
- Program of Development signed by a licensed engineer or architect
For condominiums, additional requirements include the Master Deed with Declaration of Registration and Building Permit. Subdivision projects require Verified Survey Returns and Sangguniang Resolution granting the Development Permit.
Processing Fees
| Project Type | CR Fee |
|---|---|
| PD 957 Subdivision | PHP 2,888.00 |
| PD 957 Condominium | PHP 2,880.00 |
| BP 220 Economic Housing | PHP 720.00 |
| BP 220 Socialized Housing | PHP 420.00 |
Processing time ranges from 14 to 20 working days depending on project classification.
Penalties
Developers who sell units without a valid CR and LTS face:
- Administrative fines and penalties from DHSUD
- Suspension or revocation of registration
- Criminal prosecution under PD 957
- Civil liability to buyers for damages
Buyers who purchase from unregistered developers have limited legal recourse and may lose their equity payments.
Relevance to Real Estate Brokers
For PRC-licensed brokers, verifying a developer's CR is a critical due diligence step before establishing partnerships. You can check a developer's registration status through the DHSUD online verification system.
When using platforms like iRealtee for developer management, brokers can maintain a developer whitelist that includes only DHSUD-registered developers. This protects both the brokerage and clients from transacting with non-compliant projects.
Key verification points include:
- Valid CR number and issuance date
- Corresponding LTS for the specific project phase
- Performance bond status
- Compliance with Section 18 of RA 7279 (UDHA) for socialized housing allocation
Related Terms
References
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