New York’s Bapple Realty, a boutique brokerage in Manhattan’s SoHo neighbourhood, has announced that it has managed to use blockchain-based smart contracts to split back office earned commissions on deals. The brokerage announced that it now uses smart contracts to receive and then allocate earned broker commissions on leases and sales. The inaugural use of the smart contract was for a split commission on a luxury apartment in Manhattan’s exclusive Soho district. The commission for the Spring Street residence totalled $3,400 — and paid in Ethereum tokens.
The smart contracts allow the renter to pay the brokerage fee and commissions to the broker handling the deal. It guards against brokerage firms, office managers or group leaders withholding their agents’ commissions for non-pre-negotiated reasons.