Under Sections 20 and 23 of Presidential Decree No. 957, a buyer of a subdivision or condominium project can stop or suspend his payments on account of incomplete project, or even demand for reimbursement, as discussed by the Supreme Court in the case of Zamora Realty v. Edilberto Gallardo.
In Francel Realty v. Ricardo Sycip, the Supreme Court said that there is no requirement for prior government regulatory clearance in order for a buyer to suspend payment on account of incomplete subdivision.
In Victoria Cabral v. Jacinto Uy, el. al., a developer including its brokers and salespersons can be criminally prosecuted under Presidential Decree No. 957 for selling lots without the corresponding license to sell.
In Spouses Howard & Susan Co Chien v. Sta. Lucia Realty & Alsons Land Corporation, the absence of a certification of registration and license to sell does not invalidate a contract to sell as long as the elements of a contract are present, i.e., cause, object and consideration