The Chamber of Real Estate and Builders’ Associations (CREBA) is seeking greater flexibility in the implementation of new rules governing the pre-selling of housing units, saying developers need access to funds to keep projects moving while ensuring buyers remain protected.

The Department of Human Settlements and Urban Development’s Department (DHSUD) Circular No. 2026-12 allows developers to secure a Temporary License to Sell, enabling them to begin pre-selling while awaiting regulatory permits from government agencies other than DHSUD.

Under the new framework, proceeds from pre-selling are required to be placed in escrow. The arrangement is intended to ensure that buyers can be refunded if the temporary license is not subsequently replaced by a regular license to sell.

CREBA president Noel “Toti” Cariño said the policy strengthens safeguards for homebuyers but could also limit developers’ ability to manage project cash flows.

He said pre-selling serves as a liquidity mechanism that supplements capital already committed to housing developments and helps developers recover part of their substantial initial investments.

These include land acquisition, planning and design, surveys, professional fees, site preparation, financing and other costs incurred before units are sold.

“Every peso legitimately returned to the project’s development cycle can help move a project faster toward completion,” Cariño stressed.

While pre-selling cannot finance an entire development, he said the proceeds can help ease cash flow pressures and allow developers to recycle working capital into construction and the development of facilities and amenities.

Cariño said the industry’s concern is particularly relevant during periods of tight capital and elevated interest rates, when restricted access to project-generated funds could affect construction timelines.

He proposed allowing the controlled release of escrow funds for the same project, subject to construction milestones and strict monitoring.

“A better mechanism would permit the controlled and progressive release of escrow funds exclusively for the same project, tied to independently verified construction milestones, engineering accomplishment and strict bank and DHSUD monitoring,” Cariño said.

“The objective should be simple: protect the buyer, safeguard the funds, but allow those funds – under strict controls – to help build the very homes for which the buyers paid,” he added.

Pre-selling remains attractive to buyers because units are generally offered at prices 10% to 30% below ready-for-occupancy units, along with flexible payment terms, early access to preferred units and potential capital appreciation.