Question & AnswerQ&A (HLURB ADMINISTRATIVE ORDER NO. 01, S. 2004)
The primary law is Presidential Decree No. 957, also known as the Subdivision and Condominium Buyers Protection Act, in relation to Republic Act No. 4726, the Condominium Act.
The HLURB, pursuant to Executive Order No. 648 series of 1981, is responsible for approving condominium plans and ensuring their compliance with the Condominium Act (R.A. 4726).
The traditional requirement was the issuance and submission of building permits by Local Building Officials before the HLURB could issue the CRLS.
The housing industry argued that expensive building permit fees and the need to test market viability through preliminary selling activities made it impractical to require a building permit before issuance of CRLS. The HLURB acknowledged this and allowed building permits as a post requirement to encourage private sector participation while protecting buyer interests.
A TLS is a temporary license issued by HLURB to condominium projects without building permits, allowing preliminary selling subject to certain conditions, including depositing sales proceeds in an escrow account.
Conditions include submitting a duly accomplished escrow agreement, depositing all sales proceeds under the escrow account with no withdrawal unless authorized by HLURB, monthly reporting of sales and operations, and no excavation or structural development before submission of the building permit.
The TLS is valid for six months from issuance and may be extended for another six months upon showing just and reasonable cause acceptable to HLURB.
Non-compliance can lead to withdrawal of the TLS, refusal of the regular license, issuance of a Cease and Desist Order (CDO), and other administrative sanctions under existing laws and regulations.
No, the TLS does not grant exemption or waiver from the applicability of other laws and regulations.
Sales proceeds must be held in an escrow account, monthly sales and bank statements must be submitted to HLURB, no foundation or structural work is allowed before a building permit is submitted, and HLURB monitors compliance with these conditions.