What is Escrow for Domain Purchases and Sales
Obtaining the ideal domain name for your new idea or business venture can be a daunting task. Picture this: After spending countless hours drafting the blueprint for your new website, excitement builds as the idea for the perfect domain name finally comes to light. You head over to a registrar, ready to buy, only to find out that the name you want is already taken. After a second glance at your computer screen, you notice that the current owner has the name for sale, but at a price upwards of a few thousand dollars. This is a very common scenario, and it makes you wonder: What would be the most secure way to obtain that domain if you decided to buy it at the higher price?
With all of the scam artists and dishonesty that is ever-present on the Internet, you may want to consider using a domain escrow service. Sending thousands of your hard earned dollars over to a seller without knowing if they are actually going to transfer ownership of the domain over to you is a huge risk. Using a domain escrow service is actually in the best interest of both the buyer and the seller. If you find that the seller is reluctant to use a service like this, then you may want to reconsider buying from them.
According to Escrow.com, their service allows the buyer, the seller, or a broker that is mutually agreed upon, to set up something called a domain holding escrow agreement. This agreement allows the buyer to make payments in installments. It works like this: Once the agreement has been signed and returned by both parties, the buyer will make the first payment, along with any agreed upon escrow fees. After the first payment is made, the seller will then transfer the domain over into an account belonging to the website, which will then be locked. When the domain is safely locked into the holding account, the first payment will be sent to the seller. The buyer will then continue to make payments until full payment is made, at which time the domain will be released to the buyer.This is a very beneficial service for all parties involved. You don’t want to lose money paying for a domain that you will never receive, so protect yourself by using a safe and unbiased third party for your transaction.