It depends on a few factors....
I mean if it's a large transaction then obviously PP is not at all ideal.
if it's not a large transaction then some of the factors to consider is the age of your own PP account?, is your account in good standing with PP? Have you had many disputes lodged against you?
My PP account is in good order and in the rare case of a dispute then it's smashed out quickly and always in my favour. This is mainly because of the age of my account and the account being in good standing BUT a Paypal representative also said that the fact that I always send the buyer an Paypal generated invoice and clearly stipulate the terms and conditions of the sale in the Invoice notes area, helps a lot when it comes to disputes. This is more or less what I say in the invoice notes area:
Terms and Condition Of Sale
This transaction is for DOMAINNAME.COM - Currently registered at: (Godaddy) under account number: (12345562) in my name: (My Name). The domain name will be transferred to: (Godaddy) Account number: (4567879) linked to this email address: ([email protected]). The transfer will be initiated immediately after payment has been received. Please note that once the transfer has been initiated, no refunds or chargebacks will be permitted. Proceeding with payment confirms that you have accepted the terms and conditions stipulated above.