ogeworan ng Poranchanong Pantao at Pogpapaunled ng Kolunsuron © Department of Human Settlements and Urban Development DEPARTMENT ORDER NO. 2°21 208, Series of 2021 AUTHORIZING THE ISSUANCE OF TEMPORARY LICENSE TO SELL, AND PROVIDING FOR THE CONDITIONS AND GUIDELINES FOR ITS ISSUANCE WHEREAS, Republic Act No. 11201, otherwise known as the “Department of Human Settlements and Urban Development Act” provided for the transfer of the regulatory powers of the Housing and Land Use Regulatory Board to the Department of Human Settlements and Urban Development, including therewith, the regulation of subdivision and condominium projects pursuant to Presidential Decree No. 957, otherwise known as the “Subdivision and Condominium Buyers Protective Decree”; WHEREAS, Republic Act No. 11517, entitled “An Act Authorizing the President to Expedite the Processing and Issuance of National and Local Permits, Licenses and Certifications in Times of National Emergency”, as implemented by Executive Order No. 129, Series of 2021 entitled “Creating the Office of Presidential Adviser on Streamlining of Government Processes Providing its Functions, and For Other Purposes” aims to accelerate and streamline regulatory processes and procedures for new and pending applications and renewals of permits, licenses, clearances, certifications or authorizations, including fixing or shortening the periods provided for under existing laws, regulations, issuances, and ordinances; WHEREAS, the issuance of the License to Sell (LS) to subdivision and condominium projects authorizes the developers thereof to start selling lots and units which in turn generates more funding and capitalization for the development of the projects, further ensuring the acceleration of the production of housing units and enabling the continuous employment of workers in the industry; WHEREAS, the expeditious issuance of the LS is however, being hindered by the delay in the issuance of other pre-requisite permits and clearances from other entities and agencies, such delay being aggravated by the COVID-19 Pandemic and the consequent imposition of various community quarantine and health protocol measures; and WHEREAS, while safeguarding and ensuring buyers’ protection through the imposition of certain conditions and other requirements for its issuance, a Temporary License to Sell (TLS) can address the urgent need DOHSUD Bong, Kalyaan AveDepartment Order No..202'- 008 _, Series of 2021 ISSUANCE OF TEMPORARY LICENSE TO SELL of permitting developers to sell lots and units that will enable the housing sector to contribute in jumpstarting the Country's economic recovery. PURSUANT TO AND IN CONSIDERATION OF THE FOREGOING, this Department Order (“Order”) is hereby issued. Section 1. Objective. This Order aims to enable the developers and the housing industry in general, to contribute to the Country’s economic recovery, by authorizing and permitting the selling of lots and units in subdivision and condominium projects, including those of other similar real estate development projects, through the issuance of a TLS, pending the issuance and/or submission of the project’s building permit (BP) and other related permits, Environmental Compliance Certificate (ECC), and/or Verified Survey Return (VSR), as may be applicable. Section 2. Scope of Application. This Order shall apply to all projects applying for the issuance of a TLS as registered with this Department. When used in this Order, whenever applicable, the word "project/s" shall include: 2.1 All subdivisions, including residential, commercial, farm lots, and industrial subdivisions; 2.2 All condominiums, including residential and commercial condominiums; and 23 Any other similar projects, including cemeteries, memorial parks, and columbaria. When used in this Order, the word “developer/s” shall likewise include or pertain to the “owner” of the project, as defined under Presidential Decree No. 957, whenever applicable. Section 3. Issuance of Temporary License to Sell. Provided that all other requirements and conditions are complied with for the issuance of an Ls under existing rules and regulations, and further subjected to such conditions and requirements as may hereinafter be provided, a TLS shall be issued: 3.1 To a subdivision or condominium project prior to the issuance and submission of the required ECC and/or VSR, as may be applicable from the appropriate government agencies; 3.2. Toacondominium project prior to the issuance and/or submission of the required BP and other relevant permits issued by the Local Government Unit (LGU) where the project will be developed; and Page 2 of 10 PagesDepartment Order No,02\- 909 _, Series of 2021 ISSUANCE OF TEMPORARY LICENSE TO SELL 33 Only after the applicant submits to this Department (through the appropriate Regional Office) a duly accomplished ESCROW AGREEMENT (“Agreement”) duly executed between the applicant, this Department, and a bank in good standing and acceptable to this, Department. Such Agreement shall provide that all proceeds of sale/s made pursuant to said TLS shall be deposited exclusively under the said Agreement and that no proceeds therein shall be withdrawn by the applicant or remitted by the bank, until expressly directed otherwise by the Department, upon showing of satisfactory compliance with the conditions of the issuance of said TLS. It is understood that the requirement of minimum level of development shall not be applicable or necessary for the issuance of the TLS. Section 4. Proof of Pending Application/s. The developer applying for a TLS shall submit proof/s of or copy/ies of transmittal/s duly received by the concerned agencies having filed with the appropriate LGU or agency/ies the application for the pre-requisite BP and other relevant permits, ECC and/or VSR, as may be applicable. Section 5. Developer’s Notarized Undertaking. The developer for whose project a TLS may be issued in accordance with this Order shall be required to submit a duly accomplished and notarized Undertaking, which provides that in the event the TLS expires as provided under Section 7 hereof, any and all amount/s paid by the buyer for the purchase of a lot or unit shall be refunded, upon order of the Department after duly evaluating the written complaint or request for refund submitted by the buyer. (A pro- forma Notarized Undertaking is hereto attached as Annex “A”). For purposes of this Order, “amount/s paid” shall include payments by the buyer on the principal amount, interests, taxes, down payments, deposits, options, and all other items such as penalties, costs, and other charges, without any deductions and notwithstanding any stipulation to the contrary. Section 6. Contents of the Temporary License to Sell. The TLS shall be issued to condominium projects without a duly issued BP, and to subdivision projects without issued ECC and/or VSR. Said TLS shall be in letter-form, addressed to the owner or developer, reciting therein that the TLS is being issued subject to the following conditions: 6.1 It shall be effective for a period of one (1) year reckoned from the date of issuance, subject to the conditions provided in Section 7 hereof; Page 3 of 10 PagesDepartment Order No.102\-000 _, Series of 2021 ISSUANCE OF TEMPORARY LICENSE TO SELL 6.2 That in the event the TLS lapses with no regular license to sell having been issued to the project, any and all amount/s paid by the buyer for the purchase of a lot or unit shall be refunded, upon order of the Department after duly evaluating the written complaint or request for refund submitted by the buyer; 63 That the applicant shall submit a monthly report of sales and project operations to the Regional Office concerned not later than the tenth (10th) day after the end of each month; 6.4 The bank shall submit monthly statements of account to the Regional Office concerned not later than the tenth (10th) day after the end of each month. Section 7. Effectivity of the Temporary License to Sell. A TLS issued in accordance with Section 3 hereof shall be effective for a period of one (1) year reckoned from date of issuance. Said TLS may be granted a final extension of six (6) months upon appeal for extension filed by the owner and/or developer based on justifiable grounds or considerations and upon clear proof that the delay is not due to their fault. The merits of the appeal for extension shall be duly evaluated by the Regional Director and his recommendation shall be subject to approval by the Secretary of the Department. Thereafter, no further extension shall be granted nor any other appeal be entertained and the effectivity of the issued TLS shall automatically or ipso facto lapse, and the developer shall refund any or all payments made by any buyer in accordance with Section 6 hereof unless a license to sell shall have been duly issued before such expiration. Section 8. Compliance to the Balanced Housing Development Program. Except for socialized housing projects, any project applying for the issuance of a TLS shall be required to comply with existing guidelines pursuant to the Balanced Housing Development Program as prescribed under Section 18 of Republic Act No. 7279, as amended by Republic Act No. 10884, and as implemented by existing rules and regulations. Section 9. Advertisement of the Temporary License to Sell. The issuance of a TLS and the TLS Number issued to a project are considered material facts and are required to be included and stated as mandatory contents in any advertisement of such project, to conform with the following format: DHSUD (Temporary) LS No. RO - XXX Where RO stands for Regional Office issuing the same and "XXX" stands for the TLS number assigned by the Regional Office to the project. As to all Page 4 of 10 PagesDepartment Order No.2021- 008 _, Series of 2021 ISSUANCE OF TEMPORARY LICENSE TO SELL other requirements and prohibitions, such advertisements shall conform with the existing rules and regulations on advertisements of projects. Section 10. Issuance of the Regular License to Sell. At any time prior to the expiration of the TLS or the final extension thereof, upon issuance and/or submission by the developer of any of the pertinent pre-requisites as provided in Section 4 hereof, a regular License to Sell (LS) shall be issued. Section 11. Fees and Fines. All fees applicable for the issuance of LS shall be applicable in accordance with the existing Schedule of Fees, but the same shall be credited for the issuance of the LS of the same project upon submission of the complete requirements. Any unreasonable delay on the part of the developer in refunding the buyers’ payments shall be subject to appropriate administrative fines or penalties as provided under existing rules and regulations. Section 12. Separability. The provisions of this Order are separable, and in the event any provision hereof is declared or rendered null and void or otherwise inoperative, all other provisions not affected thereby shall remain valid and effective. Section 13. Amendatory Clause. All other executive orders, department orders, rules, regulations, and issuances or parts thereof inconsistent with this Order are hereby repealed, superseded or modified accordingly. Section 14. Effectivity. This Department Order shall take effect immediately. Let a copy of this Order be served to the Office of the National Administrative Registry. Secretary (November 24_, 2021) Page 5 of 10 PagesDepartment Order No. 202\- 009 , Series of 2021 ISSUANCE OF TEMPORARY LICENSE TO SELL ANNEX “A” Developer’s Undertaking Republic of the Philippines Inthe Cityof_ ss) xX - UNDERTAKING TO REFUND BUYERS’ PAYMENTS L , Filipino, of legal age, with residence and postal address at , after being sworn in accordance with law, hereby depose and state: 1. That I am the (Position) of (Owner / Developer ) and that I am duly authorized to act in such capacity and represent the (Owner/ Developer ); % 2. That said corporation is the owner/developer of (Name of Project) located at (Address/Location) which is the subject of an application for Certificate of Registration and License to Sell (CR/LS) before the Department of Human Settlements and Urban Development (DHSUD) Region ; w . That a Temporary License to sell (TLS) is being issued in favor of (Name ) pending issuance and submission of other requirements for the Project's License to Sell (LS); 4, That the (Owner / Developer) shall comply and fulfill with all the requirements and conditions for the issuance of the TLS; 5. That said TLS shall be issued only after the applicant submits to the Department of Human Settlements and Urban Development Regional Office ___ a duly accomplished ESCROW AGREEMENT between the applicant, the Department and a bank in good standing which is acceptable to the Department, together with a bank certification stating therein the amount deposited by the developer; 6. In the event that the TLS (or the final extension thereof) expires with no regular LS having been issued to the Project, the (Owner / Developer) shall refund all payments made by any and all buyers of lots or units thereof, upon order of the Department after duly evaluating the written complaint or request for refund submitted by the buyer; 7. When the regular License to Sell is secured after expiration or cancellation of the TLS, the Developer, at the option of the buyer, shall continue the contract of sale entered into with the buyer at the contract price agreed upon in the original contract. Page 6 of 10 PagesDepartment Order No. 2021 009 _, Series of 2021 ISSUANCE OF TEMPORARY LICENSE TO SELL IN WITNESS WHEREOF, I hereunto affix my signature this__ day of City, Philippines. ____, 20__in AFFIANT NOTARIZATION Page 7 of 10 PagesDepartment Order No. 202-008 _, Series of 2021 ISSUANCE OF TEMPORARY LICENSE TO SELL ANNEX “B” Ri Requirements for TLS E: (Name of Project and its Location as indicated in the submitted Sworn Registration Statement) (Date) The Regional Director: Pursuant to pertinent laws and the implementing rules and regulations of this Department, I am hereby applying for a CERTIFICATE OF REGISTRATION (CR) and a TEMPORARY LICENSE TO SELL (TLS) for the above-mentioned project. Please consider the attached documents listed below with check or cross (‘/" or *X") consistent with the list or requirements stated in the Implementing Rules and Regulations of P.D, No. 957 and numbered consecutively to support the application for CR/LS: C Sworn Registration Statement [PRLD.SRS.002-A.00 or PRLD.SRS.002- B.00] O Certified True Copy of Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT) duly stamped with original marking “CERTIFIED TRUE COPY” by the proper Register of Deeds and bearing its seal or security marker. C Duly audited Balance Sheet C Articles of Incorporation, By-Laws, and latest Annual Corporate Report to SEC Sample copy of Contract to Sell Ci Proof/s of or copy/ies of transmittal/s duly received by the concerned agencies having filed with the appropriate LGU or agency/ies the application for the pre-requisite building permit and/or other permit/s pertinent to the project, Environmental Compliance Certificate (ECC) and/or Verified Survey Returns (VSR). O Certified True Copy of DAR Conversion Order / Exemption Clearance* U Certification from MERALCO / Local Franchise Holder Permit to operate a deep well / water potability test results / Certification from Local Water District C0 Program of development (bar chart with S-curve, Gantt Chart/PERT- CPM, etc.) signed and sealed by licensed engineer or architect indicating work activities, duration and costing. Cl Affidavit to Change Project Name [PRLD.ACPN.005.00] Page 8 of 10 PagesDepartment Order No, 222\- 006 _, Series of 2021 ISSUANCE OF TEMPORARY LICENSE TO SELL O Duly accomplished and Notarized Fact Sheet [PRLD.FS.006-A.00 or PRLD.FS.006-B.00] O PHILVOCS Certification © Civil Aviation Authority of the Philippines (CAAP) Certification (if applicable) C Undertaking to Refund Buyers’ Payments (“Annex A” of this Order) *DAR Conversion Order shall no longer be required as a condition for issuance of Certificate of Registration and License to Sell in cases where the property involved is located in an area already classified as residential, commercial, industrial or other similar development purposes as provided in an updated CLUP approved pursuant to EO 672, Series of 1993. For Condominium Projects: O Master Deeds with Declaration of Registration and Declaration of Restrictions evidences by the proper annotation thereof in the title(s) of the property and the certified true copy of such title(s) from the Register of Deeds. O Affidavit of Undertaking to submit Condominium Certificate of Title [PRLD.CCT.004-B.00] For Subdivision Projects: Sangguniang Resolution/Ordinance granting of Development Permit/ Subdivision Development Plan O Certified True Copy of resolution conferring authority to the mayor or other local government official to issue Development Permit. O One (1) set of Subdivision Development Plan C Approved Electrical Plan and Specifications O Affidavit of Undertaking to submit Transfer Certificate of Title (parks, playground, community facilities and other open spaces) [PRLD.TCT.004- A.00] If the Property is/are currently mortgaged: (0 Mortgagee Undertaking [PRLD.MU.007-A.00] 1 Mortgagor Undertaking [PRLD.MU.007-8.00] Tax Identification Numbers: Landowner Developer In this connection, I attest to the fact that: (1) The number identifying the documents listed above under perspective applications corresponds to each of the attached documents; (2) Duplicate copies are the authentic and faithful reproduction of the original documents; and Page 9 of 10 PagesDepartment Order No.222\-008 _ Series of 2021 ISSUANCE OF TEMPORARY LICENSE TO SELL (3) Documents conforms strictly to the official checklist of requirements and the detailed description thereof. I understand that additional requisites, including but not limited to subdivision approval and other pertinent documents of the compliance Project per Section 18 of R.A. No. 7279 (as amended by R.A. No. 10884), if covered, the performance bond, and the balance of the Processing fee or LS, may be required only through a written notice signed by an authorized Official and that, further action on subject applications may be withheld if there is an unfavorable decision (final and executor) in case before this Board or an order in connection with a violation against the undersigned applicant which has not been complied with. I can be reached at: Address Telephone No. Or through my representativ _ (Name) Address = Telephone No. _ Very truly yours, (Printed Name and Signature) (Designation/Position) NOTARIZATION Page 10 of 10 Pages