discuss Escrow.com - Why Not Take Domain Like Sedo?

[DN_Hunter]

Hi,

I just finished using Escrow.com for a domain sale. But I think their process has a flaw that can easily be fixed...

1) sale agreement is reached between buyer and seller
2) Buyer send money to Escrow.com
3) escrow confirms money,
4) escrow tells seller to work out the transfer with the buyer
5) seller transfers (different registrar) or pushes (to buyer account at same registrar)
6) buyer gets the domain name and has an "inspection period"
7) buyer then has to update the transaction in escrow.com that he accepts the name
8) escrow releases the funds to the seller


My problem is with Steps #4, 5, 6, 7

If escrow just has an account at all of the Registrars, they ask the buyer what registrar they want the domain name in.

Then Escrow asks the seller to transfer or push to the registrar the buyer requests (into Escrow.com's account at that registrar).

Once Escrow takes control from the buyer, they can deal with pushing it into the Buyer's account at that registrar. This removes the following possibilities
a) buyer gets the domain name and changes the WHOIS info immediately so no telling who has the domain name
b) seller updates the domain name WHOS to match the buyer, and seller claims he pushed to the buyer's account and the buyer is a deadbeat
c) buyer gets the domain name, but forgets to update the transaction at escrow -- delaying the funds going to the seller


For GoDaddy domain names in the past, Sedo has asked me to simply push to SEDO's account at GoDaddy. Then Sedo handles going from Sedo's account to Buyer's account. This ensures the money and Domain Name goes to Sedo (much better in my view). Then Sedo gives money to seller, and domain name to buyer.


BODIS also did it the way SEDO did (before they stopped at the end of January).


Well, just had to get that off my chest...

 

[discobull]

Hi,

I just finished using Escrow.com for a domain sale. But I think their process has a flaw that can easily be fixed...

1) sale agreement is reached between buyer and seller
2) Buyer send money to Escrow.com
3) escrow confirms money,
4) escrow tells seller to work out the transfer with the buyer
5) seller transfers (different registrar) or pushes (to buyer account at same registrar)
6) buyer gets the domain name and has an "inspection period"
7) buyer then has to update the transaction in escrow.com that he accepts the name
8) escrow releases the funds to the seller


My problem is with Steps #4, 5, 6, 7

If escrow just has an account at all of the Registrars, they ask the buyer what registrar they want the domain name in.

Then Escrow asks the seller to transfer or push to the registrar the buyer requests (into Escrow.com's account at that registrar).

Once Escrow takes control from the buyer, they can deal with pushing it into the Buyer's account at that registrar. This removes the following possibilities
a) buyer gets the domain name and changes the WHOIS info immediately so no telling who has the domain name
b) seller updates the domain name WHOS to match the buyer, and seller claims he pushed to the buyer's account and the buyer is a deadbeat
c) buyer gets the domain name, but forgets to update the transaction at escrow -- delaying the funds going to the seller


For GoDaddy domain names in the past, Sedo has asked me to simply push to SEDO's account at GoDaddy. Then Sedo handles going from Sedo's account to Buyer's account. This ensures the money and Domain Name goes to Sedo (much better in my view). Then Sedo gives money to seller, and domain name to buyer.


BODIS also did it the way SEDO did (before they stopped at the end of January).


Well, just had to get that off my chest...

You're not the first person to make this suggestion. The fact that escrow.com doesn't take possession of the domains always means having to document everything thoroughly and having to stress about whether you're possibly dealing with a dishonest buyer that might somehow defeat this flawed system and walk away with the domain for free.

I've talked to escrow.com about this and their reluctance to go the route of putting domains in escrow is that they worry that in the event that the transaction involves a stolen domain, they might be held accountable due to being the owners of the domain immediately prior to its delivery to the buyer. I don't get the impression that their policy is likely to change anytime soon.

 

[Kate]

The domain pushes can be problematic.
For instance they can trigger a 60-day lock at some registrars (nodaddy being the most notorious).

Each registrar is different, each extension is different too. You need a lot of experience and expertise to handle all the different cases. Sedo exist for a reason, and their fees as well.

Also, in some extensions, a fee has to be paid every time a domain name is transferred or pushed (example: .pe). Sometimes, the transfer date becomes the new anniversary date: additional registration time is lost. Somebody then has to pay the fee.

A real escrow should take possession of the domain, but even Sedo don't always do it. Sometimes you will transfer the domain direct to the buyer, or the buyer will initiate transfer.
(Remember than in gTLDs, a domain name cannot be transferred to another registrar if it's been at the current registrar for less than 60 days).

Sedo coordinates the transfer according to the wishes of the buyer, and where the domain is currently registered.
Yet some people can't get a transfer right, or they are downright dumb. Some registrars botch the process as well. It's tedious, clerical work, it's customer support. Doing full escrow is possible but the cost of the escrow transaction will inevitably go up.