MHub offers developers digital solution to LAD

Property technology startup MHub is offering developers a solution to overcome challenges following the recent landmark decision of the Federal Court that Liquidated Ascertained Damages (LAD) are to be calculated from the booking fee collection date.

MHub which provides digital ecosystem focusing on solutions to speed up, simplify and save cost in property transactions, said since its establishment in 2017, it has helped over 80 developers shortened their transaction processing time tremendously.

“Can you shorten what is conventionally a 10-month process into a one-month process? The answer is yes.

“We have accomplished that with our clients that apply our end-to-end model. This is why it is now more important for developers to digitise their transactions to enable faster transactions,” said MHub’s chief business officer Victor Chua in a statement.

Through a digitised system, he said MHub could automate certain steps, eliminate gaps and ultimately speed up the transaction process.

Chua opined that although the decision on LAD may cause temporary pain, it is in the long run a step in the right direction and may prove to be a major upward turning point for forward-thinking and agile developers.

On January 19, 2021 the Federal Court ruled that the LAD payable by housing developers to purchasers for the late delivery of vacant possession of units in a housing project must begin from the date of payment of booking fees and not from the date of the sale and purchase agreement (SPA).

Meanwhile, Chua said the mortgage application process, which usually takes place within that crucial window of time between booking confirmation and signing of the SPA, is one of the steps that often consume large amounts of precious time.

“MHub overcomes this challenge by digitising the whole process, allowing buyers to conduct credit checks before placing a booking, skipping a major gap in the transaction process.

“The mortgage application process itself is also markedly accelerated and simplified when done on MHub’s platform,” said Chua.

He said through the usage of MHub apps, all stakeholders involved in the transactions can also keep track of processes, making it easier to respond swiftly to any contingencies.

MHub is the maiden project by TRB Ventures, a Malaysia-based technology company.

To date, MHub has captured over 38,000 bookings with a total project value of over RM93 billion.

Currently available nationwide except Perlis, Kelantan and Terengganu, MHub has over 10,000 registered users and is already the platform of choice for 10 of Malaysia’s top 15 property developers.

MHub claimed it now commands 25 per cent of the primary property market share in Malaysia and is recognised as the clear market leader in its niche. – Bernama

Source: NST