First of all, a developer is required by law to secure a license to sell before they could market their real estate project. A license to Sell is required by law in order to protect buyers from unscrupulous developers. Further, A license to Sell is granted only to developers who have organizational capabilities to develop and complete the project on time. The potential risk of buying a property without a license is that the project may never be completed at all even after you have paid the full amount.
Pre-selling means that they are marketing their real estate project prior to the release of a License to Sell and they can be fined by HLURB if discovered. Advertisements in Newspapers should also indicate the License to Sell.
If the developer has not been given a license to sell - they may have trouble with complying with the requirements.
I cannot respond to your question about a “ foreigner developer” because they may have a legal status as investors. You should ask the SEC or the DTI for this matter.
Please read the BUYERS Category and Developers Category in the same website so you get the full picture.
WHAT BUYERS NEED TO KNOW BEFORE BUYING
WHAT DEVELOPERS SHOULD KNOW
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