What is Developer Interest Bearing Scheme (DIBS), the term used when buying property from a certain developer?

Question: Could you explain to me what is DIBS? Is it really buyer don’t need to pay a single cent to developer?     Answer: DIBS means “Developer interest Bearing Scheme”. Our basic understanding is (a better clarification and explanation can be made by a banker or developer)  if you purchase a property under construction from a developer, let’s say Developer A which has DIBS, Developer A will bear the interests of the loan during the construction period. Make it simpler, You purchase your property for RM 300,000.00. You pay Developer A a minimum of RM 15,000.00 (as down payment of 5%, sometimes this can be 10% or more depending on your loan) and you borrow from a bank for the remaining RM 285,000.00. You opt for interest only loan package from the bank (that means, you only pay the interests but not the principal of the loan during the construction period). Under DIBS, Developer A will pay the monthly interests until completion of the property. In other words you don’t have to pay anything to the bank until construction completes. You only start paying the bank instalments after completion of the property. So, you only pay RM 15,000.00 and […] read more

Have you been maliciously prosecuted in Court?

“It Was Malicious Prosecution! See you in Court!” Sitting in a coffeeshop, a man who was seen very angry told his friends who were having some drinks with him that he wanted to sue the police officer who brought embarrassment to him by bringing him to court after both argued over a parking space. This man said, “I wanted to park at the parking space, suddenly the police officer, who at that time was not in uniform, stopped my car from parking my car at the parking space. I only came to know he was a police officer after he handcuffed me in the presence of wife. There was a big curious crowd at that time and I was very embarrassed and helpless.” One of his friends sitting with him then asked, “Why not you say that he had no authority to stop you.” “How can I?” the man replied, “He was a police officer! The police officer said he had reserved the parking space for his girlfriend who would be coming on the way soon! Another friend after some vulgar words by him said “You must teach this police officer a lesson! He had abused his power!” The friend […] read more

20 Tips to Increase the Success of Your Home Loan’s Application

Update: Corrected the formula for Net Income calculations. Credit to www.propertywtf.com Loan’s application declined to RM45.26bil from RM47bil! The Bank Negara had showed on their website that loan approvals’ percentage for residential properties in the country declined to 46.8% in the first half of this year from 50.1% during the same period in 2011. While the application for loans for residential properties purchases increased by 2.9% but the actual loans approved during the six-month period declined to RM45.26bil from RM47bil in the same period in 2011. This is evident when our clients have to resort to different banks when they buy their properties and this prolonged the property transactions period. Why declined and how it is assessed? One of the reasons for the increasing numbers of bank loan disapproval is because of the recent change of policy by Bank Negara to use Net Income instead of Gross Income of borrowers in approving loans. From our recent meeting with a local bank manager on this policy, he explained that if a person: Has a salary/total income of RM3,000.00 a month (after deductions of EPF and SOCSO) Has a car commitment of RM500.00 a month Other commitments of RM1,000.00 a month (house, […] read more


ARRESTING A SHIP! DARE YOU? How to arrest a ship? When a claimant’s goods on a ship is damaged during shipment to the claimant’s destination or if the claimant feel that there is a valid maritime claim and seek to arrest the ship, the claim need to be filed in soonest possible in court. An affidavit to support the claim must be filed to court before a warrant to arrest the ship be issued. The affidavit must consist of a written statement of facts and belief with the sources and grounds thereof giving rise thereof of evidential requirement for the arrest of the ship. At the same time the affidavit must also state certain specified details, such as the nature of the claim and bare assertions are not sufficient – see The Courageous Colocotronis [1978] 2 MLJ 184. The affidavit must also state the parties’ details and the name of the ship to be arrested. There must also be a full and frank disclosure of all material facts for the issue of the writ and warrant of arrest. – see The Hoe Lee 1 MLJ 45; The Andria [1984] 1 All ER 1126. If it is found that the claim is valid, the court may […] read more

Do you have a Will? If not, we tell you why you need one!

This article is contributed by Nicole Yeoh, in chambers of Voonslegal. Why you need a Will? You may often hear people asking “Hey! Do you have a Will?” And the immediateresponse would be “Why I need a Will?”, “I am fit and healthy now. I do not need one at the moment. I am not rich and so I do not need to write a Will.” The conversation may not stop there. In present days, there are many people out there who do not know the importance and the need of making a Will. Some may think that it is a taboo to make a Will. The advice is, no matter whether you are rich or poor a Will is a very important document to protect your estate and to ensure that your property shall not fall into the hands of those whom you don’t want to benefit. Then, what is a Will? Under the Wills Act 1959, a Will is a declaration that states and shows the intention and instructions of a testator to give legal effect to his property or other matters which he desires to be carried into effect after his death. Upon death, the property of […] read more

How, and How Much, Do Lawyers Charge?

Most often than not when a client walked into a lawyer’s office he would first of all ask the lawyer how much he should pay the lawyer for a certain work to be done even without first giving an opportunity for the lawyer to assess the legal problem the client was facing. A lawyer may not be able to off-hand quote a fee without a proper understanding of the legal problem that the client is facing. Therefore, a lawyer will not be able to quote a proper fee when client ask by phone. The best thing is to see the lawyer personally. Before quoting a fee for a particular work asked by the client the lawyer has to consider a number of factors such as: The nature of legal problem the client is facing, whether it is about debt matters, personal injury claims, land disputes, hire –purchase, criminal charges etc., The length of time needed to resolve the legal problem faced by the client; Whether there is a need to file legal proceedings, defence and or counterclaim in court; The importance of the case to the client; The complexity or novelty of the legal matter under consideration. How much you […] read more