Saturday, August 7, 2010

DIBS - Developer Interest Bearing Scheme

DIBS - Developer Interest Bearing Scheme

This is a very common strategy developer use to market their product nowadays. It is something good to the purchaser as well, as it provide the purchaser longer time to save money while the property still under construction.

The reason I brought up this topic is this facility is provided by the Developer. It is not something "standard" in property transaction, therefore we need to be aware of the "terms and condition" tied to this scheme.

Recently there is some discussion about this DIBS in the Internet forum:
1. Bangsar South - Some of the purchaser sell their property before the property is completed and handover (VP). The developer is charging back the purchaser the interest they beared during the construction period.
2. Empire Damansara - In one of the agreement, the developer stated that they entitle to charge the purchaser 1% of the selling price if the purchaser sell the property before the strata title is issued.

As mentioned above, the scheme is not part of the standard HDA contract, therefore you need to pay particular attention when sigining the agreement to avoid billshock when you sell your property.

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