Building Permit as Post Requirement for Condos

The Board recognizes the need to ensure structural soundness and integrity of condominium projects.
Due to limited personnel capacity, the Board initially required issuance of building permits by Local Building Officials before Certificate of Registration and License to Sell could be issued.
The housing industry raised concerns regarding expensive building permit fees and the impracticality of obtaining permits before market testing sales.

The resolution shifts the building permit requirement from a prior to a post condition for issuance of Certificate of Registration and License to Sell.
Allows issuance of a Temporary License to Sell (TLS) without prior building permits to facilitate preliminary market testing and financing approval processes.

TLS shall be granted on submission of an Escrow Agreement among the applicant, HLURB, and a qualified bank to hold all sales proceeds exclusively under the escrow until compliance.
TLS validity is six (6) months, extendable for another six months upon justifiable cause.
Monthly reports of sales and project operations to be submitted within ten (10) days after month-end.
The escrow bank must also submit monthly account statements within the same period.

No excavation, foundation works, or structural development allowed without submission of building permit.
Failure to comply with any TLS conditions or failure to submit the building permit within the allotted period may lead to withdrawal of TLS, refusal of a regular license, issuance of Cease and Desist Order (CDO), and administrative sanctions.

The TLS does not exempt or waive applicability of other existing laws and regulations.

Resolution adopted by HLURB Board on December 17, 2003.
Took effect fifteen (15) days after publication on February 21, 2004.
Signatories included Chairpersons and Commissioners from HUDCC, DOJ, DILG, NEDA, DPWH, and HLURB officials.