When buying or selling a domain name, it is highly recommended to work with an escrow agent to protect you against fraud, deception, and irresponsibility. A third-party escrow agent connects the buyer to the seller, and ensures that both parties receive exactly what was agreed to before the purchase. The buyer will not receive the domain name until the seller pays the escrow, and the seller will not be paid for the sale until they give the domain name to the escrow. Buyers can be confident the domain will be registered in their name and sellers can be sure they’ll be paid.
There are many benefits to the buyer and seller alike for working with an escrow. Both get peace of mind, security, and a guarantee that the deal will go as planned. The seller can get payment verification before transferring the domain name. Working with an escrow also provides protection against credit card fraud, insufficient funds or credit card chargebacks.
Buyers are able to confirm domain ownership directly with the registrar before the seller is paid. Escrow also protects the buyer’s privacy by sending credit card information to a financial institution, not a stranger.
There is a small fee for escrow agents’ services, typically a percentage of the domain name selling price. There are different percentages charged for each escrow company. Typically, each company follows the same protocol for the transaction process, which is as follows:
- Agreement between buyer and seller
After registering with an escrow company, both parties should agree to the terms of transaction including price, domain name, method and date of payment.
- Payment to escrow company
The buyer sends their payment to the escrow, using wire transfer or in some cases PayPal, credit card or check/money order. The payment is verified to prompt the seller to transfer the domain name.
- Domain name transfer
Once the payment has been verified, the seller transfers ownership of the domain name to the buyer. Each domain registrar has a different procedure to transfer domain ownership.
- Confirmation of domain name ownership
Once the buyer confirms the domain name ownership, the escrow company will inspect the WHOIS database of the registrar to ensure it reflects the buyer’s profile.
- Seller is paid
Once the domain name transfer goes through, the seller is given their payment through the escrow and the transaction is complete.
At DomainTrade, we use escrow for all our transactions. Contact us to learn how we safely and securely sell your domains.