Due Diligence when buying high $ names

[staffjam]

Hi,

A few months back I bought a domain for quite a sizeable sum (well to me anyway)
Thankfully the seller was genuine and the deal went well.
In the meantime I have been seeing lots of reports on Domain hijacking and Fraud, where the seller doesn't actually own the name they are about to lighten your pocket for.

I was hoping you guys can share some of the due diligence you undertake when buying a high $ name

[Link Edited]

Thanks

 

[Devil_Dog]

Main thing I do is contact the previous owner via whois history lookup.

Search current owners email, name and other info via search engine also.

 

[Mike]

Great Topic that definitely has value to all of us. Let's get the great minds of NP together and compile our best solutions. :tu:

1, Check who-is
2, High volume purchases - get personal conversations with the seller going (phone, etc)
3, ESCROW! (Moniker or Escrow.com)
4, Google (the seller and the domain)
5, check well known domain forums for the domain and eventually the seller
6, check auction houses such as TDNAM, SEDO, etc. whether the name has been listed there recently
...and generally, if your gut tells you that there's something "fishy", listen to it.

M.

 

[hawkeye]

I'd use Moniker Escrow or Escrow.com, put a 3+ day inspecting time frame, and then search and research in this time to your satisfaction. If they are real, they won't mind the time frame, and with an escrow transaction both people are protected to the best that can be done. IMO.

 

[doobee]

Have the seller confirm ownership of the domain by modifying the domain's address line to read something like "for sale on namepros.com", etc instead of his/her address.

 

[Mike]

Not sure if that's a viable option for buyers/sellers.

In a high Dollar purchase:
- why not involving an attorney for the final steps?
- Draw up a sales agreement
- have it faxed, notarized and faxed back.
- Sales agreements are readily available for free
- notary public costs a few bucks (usually under $5)
- Buyer has the added security of holding a document in his hands that outlines all details, signatures, etc.

Notaries are available in most countries and in the countries that they're not available, you might want to reconsider buying from anyways.
I believe that any purchase of proportions that could make you feel uncomfortable should be done like this. If the seller is unwilling to go the extra mile to secure himself a good deal that's reliable - security goes both ways, you probably want to step away anyways.

M.

 

[EGS]

Escrow.com would be the safest bet for any high-priced domain(s), website(s), product(s), and/or service(s).

Escrow.com would be the safest bet for any high-priced domain(s), website(s), product(s), and/or service(s).

 

[Kate]

If you have a subscription at domaintools you can search archived whois records and trace ownership of the name. Often useful.

 

[htmlindex]

Not sure if that's a viable option for buyers/sellers.

In a high Dollar purchase:
- why not involving an attorney for the final steps?
- Draw up a sales agreement
- have it faxed, notarized and faxed back.
- Sales agreements are readily available for free
- notary public costs a few bucks (usually under $5)
- Buyer has the added security of holding a document in his hands that outlines all details, signatures, etc.

Might be useful if dealing with buyer/seller in the same country but when buyer & seller are in different countries I would say that would be a waste of time & money because of jurisdriction issues.

 

[Charley]

In the meantime I have been seeing lots of reports on Domain hijacking and Fraud, where the seller doesn't actually own the name they are about to lighten your pocket for.

Those are names that are being brokered. But often it's fraud, people selling unauthorised names.

 

[staffjam]

Thanks for the suggestions guys.
We really do need to protect ourselves, as i'm guilty of getting a little excited if i spot a potential good deal, and in my enthusiasm cut a few corners (well more than a few.)
Any more comments are very welcome.

 

[WORDSWORTH]

...and generally, if your gut tells you that there's something "fishy", listen to it. M.

Always trust your gut. Often, if it looks to good to be true, IT IS! Rep given for your excellent posts.

I must admit, I've been dissuaded from buying high value domains because of the risks. I shall be watching this thread closely.

I was tempted to buy a domain advertised for sale here at NP recently. It wasn't high value, but nevertheless my findings can be applied to any purchase:

1. A good LLLL.com was advertised at $60. It was worth at least $200 (alarm bells).

2. It was registered at register.com for two years. Domain reg. there is $34.99 x 2 = $69.98 and he's selling for $60 (big alarm bells).

3. The whois showed buydomains.com as the owner (deafening alarm bells).

4. The seller had zero TR feedback (alarm clock broke).

The seller, it turned out, was a scammer who's since been banned from NP. One of the reasons I really like this forum is that they take prompt action against the minority of people who attempt to spoil it for everyone.

Happy domaining!

Matt.