It has been brought to the attention of the Board that due to the continued malaise on the housing industry, the requirement of the Building Permit for application of the License to Sell has become impractical and expensive because it will prevent the developers to conduct preliminary selling activities to test the market viability of their projects, which is a test required by financial institutions prior to approval of any developmental loans. As a good business practice, the developers usually conduct these preliminary test before they fully invest on the condominium. If the market testing will show that the project is not viable, they can stop or limit the project. But by already paying the expensive Building Permit, the developers will be forced to continue the whole project even if later, market studies would show that the project is not viable or marketable. This will result to loss of funds which might be invested to more viable condominiums.
Erratum: The word “subdivision project” previously mentioned on the above paragraph was changed to “condominium”.
Posted in: Board Resolutions