First time Escrow.com transaction, Need help!!

[DotCom9]

Hi All,

I am doing my first escrow transaction for one of my domain names and need some help. I have below three options available, and want to know which one is the safest one. Currently all I got from the buyer is to transfer the name to a physical address which is a little confusing to me.

Username / Password
Authorization code
Push

Thanks

 

[DNVantage]

Escrow does not hold the domain name.

Does anyone know of a service similar to Sedo which holds both the domain name from the seller and the money from the buyer but costs less?

I am surprised at lack of domain escrow from most escrow services. Too be honest, I am even more surprised that domain sellers are so ok with it, considering there is no easy/cheap way to get the domain back if the buyer decides not to be fair and lies about not receiving the domain.

With domain push, it is still ok as there is some proof sent by registrar, but with domain transfer, If things go wrong, I doubt there is any remedy except for legal action, which would not be worth most low/mid $x,xxx domain sales.

I wonder how the escrow service will handle the situation if the buyer even after having the domain claims they did not receive it after the transfer, specially it they don't update whois or they could be more sly and update the whois with sellers info or some other info?

Third party escrow services can not access the buyers account, and no registrar would officially provide a third party escrow service information from a domain account to prove the buyer has the domain, as this would leave the registrar open to a breach of privacy issue. Unofficially the escrow service may find out the domain is with buyer but AFAIK, they would still not legally be able to release the funds to seller unless buyer confirms.

This is what I have gathered from reading online about domain escrow and various escrow websites.

@DotCom9
For future requirement, have a look at Escrow service that....?

After reading https://sedo.com/us/services/domain-transfer/ , I was under assumption Sedo does escrow domains ( some tld's like .com/.net) but just couple of days ago, I had a chat with sedo support, they said they do not escrow domains, not even for .com! Maybe they do only for high value sales?

Escrow.com does escrow domains but their fees are high. From what I have read online, they are good. I guess one pays for top service.Though it does not make sense to pay such high fees for low value sales.

@Mauli Fry , I have read only good things about Escrow.com, if my sale was to be large enough, I would not think twice before using Escrow.com. ( still waiting for that high value sale )

btw, Mauli Fry's NP account has escrow logo, so I am going to assume Mauli Fry is with Escrow and all is good, but a funny thought occurred to me, what if it was the seller with a new NP account, instructing the seller to transfer the domain. ..... yes, yes, I know seller must have had received same instructions from the Escrow.com by email ........ if so why the need to mention the instructions again here?! ummm .....

@Eric_Lyon I hope NP does verification for registrar and escrow NP accounts! If someone opens an account like this, a newbie might not realize it and might suffer a loss of domain or money. It is not NP responsibility but would be nice if it was done. ( @Mauli Fry's account with just 1 post got my 'domain'sense tingling, why did Escrow.com suddenly go out of way to assist one seller on NP? Anyway, I am sure all is good...)

 

[carob]

Does anyone know of a service similar to Sedo which holds both the domain name from the seller and the money from the buyer but costs less?
Thanks

Sedo's Escrow Only service is a flat rate of 3%
https://sedo.com/uk/services/domain-transfer/

Escrow.com charge 3.25% on amounts up to 5k, less above that, over 25k just 0.89%.

Escrow.com say they have to wait 3 days to clear funds - Sedo can be same day.

 

[The New Guy]

Sedo will escrow domains. Buyer pays sedo, you push to sedo's account with the registrar, then they release the funds to you.

 

[tinox]

Hello,

also for me it is the first escrow.com transaction
and I would appreciate your help.
I haven’t clear the escrow process and I have doubt.

I would like to sell some domain names by choosing to give the “Authorization Code” as the “Trasfer Type”.
So
- I will need to unlock the domain
- Request an authcode, and send it to the buyer

1. How does escrow.com know that I send the authcode to the buyer? Includind escrow.com as CC in the email or respondind through an escrow.com account area message?
The buyer could claim they he didn’t receive the authcode, while not updating the whois record (so still with the seller information) or changing it to someone else?

2. The buyer receives the authcode and starts the transfer process to his registrant. I approve the transfer and he get the domain after some days.
He can now change the whois record with his information. Only when the whois shows the Buyer as the registrant the Inspection Period can be started? So from that moment on he has one/two more days (amount of time agreed) to check that everything is ok?

3. The buyer, once he get the authcode, can return the items to the seller or cancel the transaction?
And in this case, how can I wouldn’t lost the domain if the buyer knows the authcode?
Not authorizing the “Confirmation of Registrar Transfer Request” send me by the registrant?

Thanks for your help.

 

[Brandon Abbey]

Regarding Escrow.com - When the buyer pays with a credit card and the payment is approved we are guaranteeing the funds are good (the liability for the money is on us). The credit card company does not deposit the funds into our account for 2-3 days. If the transaction closes prior to the funding process by the credit card company we must wait to pay. It is illegal for a licensed escrow company to make a payment with funds designated to another escrow account. This is an ultimate protection for all parties.

 

[Mauli Fry]

Hi @DNVantage

Thank you for your comments. I am glad to hear you have heard good reviews about us. You are correct, I am with Escrow.com and I work with Brandon Abbey, who recently commented on here. I agree it is very important to confirm identity when someone reaches out on a forum, or really anywhere. I understand your concern and it's good to be vigilant about safety and security. Escrow.com acquired Agreed Escrow last year. I worked with Agreed Escrow previously and recently joined the Escrow.com team. I look forward to assisting with escrow and Escrow.com specific forum posts. You may always contact me through our contact information listed at escrow.com, as well. The Escrow.com fee may seem high but as a licensed and government regulated Escrow Company, we have strict, extensive protocols and are regularly audited by multiple government bodies. We try our best to keep our fees low and competitive with other licensed escrow companies. In addition, it’s our priority to offer you the best, simplest, safest, and securest escrow experience by taking the risk out of equation for you.

During the Escrow.com transfer process, you may push within the same registrar or transfer your domain to the to the buyer’s new registrar. You are more than welcome to CC us on transfer emails you send to the buyer. We also do our own due diligence to follow up with both parties to confirm status and follow the process closely within the transaction.


Hi @tinox

Once the buyer receives the auth code, the seller will initiate the transfer to the new registrar. We confirm the Whois contact information updates to the buyer’s information and we notify the parties that the inspection period has started. We automatically check the Whois information through the process so we will be aware as soon as the contact information updates to the correct information. You may set the inspection period from anywhere from 1 to 30 days when creating the transaction. Most domain transfers can be confirmed quickly, but it is both parties’ choice to include a longer inspection period in the terms of the agreement before both parties agree to the terms. Only once the buyer confirms acceptance within the transaction, or the inspection period ends without an acceptance or rejection does payment get sent to the seller and the transaction closes.

If the seller does not initiate the transfer within 10 days, the buyer can request a cancellation by sending an email to our support team. After the transaction is cancelled, the funds will be returned to the buyer, minus the entire escrow fee.When the buyer rejects the domain, they are required to return it to the Seller within 10 days of rejection. The seller will have a 5 day inspection period to inspect the returned domain. Based on the seller's acceptance of the domain, the buyer is refunded the original payment less the entire escrow fee. We do not refund the buyer until the seller confirms receipt and accepts the domain. In regards to securing a rejected domain back from a buyer, it’s important to note that transfer process will vary depending on the registrars involved. The transfer process may require action from the buyer and seller and will most likely include verification emails to move the domain back. I also suggest locking the domain once you receive it. The buyer would not be able to complete the transfer unless you confirmed it with your registrar.

I hope I have covered all the questions and escrow concerns. If there is anything, please feel free to connect with me here, or contact me at Escrow.com. I look forward to questions, suggestions, and comments from the domain industry.

 

[tinox]

Thanks @Mauli Fry
Your response helps me a lot.

So
- escrow.com knows that I sent the authcode to the buyer

and if in case
- I send the authcode and the buyer does not initiate the transfer and the inspection period cannot start (I didn't find home many days the buyer is required to initiate the transfer) - while he has the authcode and my domain is unlocked
- the buyer rejects the domain

I have to confirm to escrow.com that I got back the domain to my registrant and/or it is locked again before the buyer would receive a refund.

Is this correct?

 

[Mauli Fry]

Hi @tonix,


Thank you for your follow up post. That is correct, you would need to confirm the domain is safely and securely back in your registrar. In addition, the Whois information will show your information and we keep a copy of it on file. We would pay the buyer the domain price, minus escrow fees, once you, the seller, confirm receipt.

 

[tinox]

Hy all,

I would like to ask you one more question about
selling my domain name by pushing the domain to the Godaddy buyer's account.

1. When I am informed from escrow.com that the Buyer's payment has been secured, I have 10 days to initiate the transfer.
Is it right?

2. If the current registrar of the domain at the time I receive this communication from escrow.com is not GoDaddy, could I have the time (within 10 days) to transfer my domain from one register to my GoDaddy account and after push the domain to the buyer’s GoDaddy account? Could for your point of view this period of time been enough (as I think)?

I look forward to hearing from you.
Thanks.

 

[Mauli Fry]

Hello,

Thank you for the inquiry. We do not require that the transfer is complete within ten days. Once the buyer’s payment has cleared, we inform the parties so the transfer can occur. We understand that transfers can be completed quickly, or take weeks. When the transfer is slower, we do follow up with the buyers and sellers on the transfer process to see if assistance is required, and to follow the status of the transfer. Once the Whois information is updated to reflect the ownership change, we begin the specified inspection period. The buyer has until the end of the inspection period to accept or reject the domain. Once accepted, we release payment to the buyer and close the transaction.

Please let me know if you have any further questions.


Thank you,
Mauli

 

[DN_Hunter]

I think escrow really needs to be "Escrow" in terms of the merchandise. The Seller should be able to push (or transfer) the domain name to Escrow.com's Account at the registrar the buyer wants the domain to be at the end of the process. Then there are no issues -- Escrow knows 100% that the domain name has been delivered (to the Escrow.com account). Escrow then pushes the domain name to the buyer, and sends the money to the Seller. This would be true "Escrow" to me...

 

[Mauli Fry]

@DN_Hunter Thank you for your escrow suggestion. We are listening to your feedback and constantly working to improve our services and tools. Please keep sending them my way. If there is any feedback, suggestions, or comments please let me know.

 

[The New Guy]

I think escrow really needs to be "Escrow" in terms of the merchandise. The Seller should be able to push (or transfer) the domain name to Escrow.com's Account at the registrar the buyer wants the domain to be at the end of the process. Then there are no issues -- Escrow knows 100% that the domain name has been delivered (to the Escrow.com account). Escrow then pushes the domain name to the buyer, and sends the money to the Seller. This would be true "Escrow" to me...

I agree. That's the reason I use sedo.com - the buyer pays sedo, you push the domain to sedo, then sedo pays you. No waiting for an 'inspection' period and no chance of a buyer scamming you out of your domain.

If escrow.com wants my business, they're going to have to finally step up and implement this. It's a simple safeguard and if they're getting paid for escrow services, they should provide one that fully protects the seller against possible fraud.

 

[cmdomains]

I thought being frauded as a seller didn't occur to experienced domainers. I'm almost glad to know otherwise but honestly No one really likes having this kinda weight on one's shoulder. I maybe new and haven't made the first sale but I do think about details too.

So I raised this concern to escrow support and had asked if during the transfer period, they verify with /ask the buyer the account they'll be using to receive the desired domain so that atleast everyone knows for sure all the details . I did get a long response like the ones above. It didn't really hit it for me. I guess these days a 'yes' would cost more than you're paying for? I'm honestly not sure at this point what escrow really does other than being its own building with a name and a license.

I guess I'm hinting. I wont mind all my conversations being cc'd to escrow but what are the odds that the other party say they changed the account info to receive the domain with (after the domain is already released). Then it becomes one's word against the other. What will escrow do in a case where the domain is transferred but claimed otherwise by the supposed receiver. I guess either you don't believe that this can happen (yes, people can fabricate evidences and get away with it, maybe I watch too many forensics shows) or you wouldn't know how to deal with it.

 

[Mauli Fry]

Thank you for your feedback and questions. I hope I can help ease your concerns. We verify the transfer has occurred before releasing payment to the seller and we have the ability to confirm domain ownership directly with the registrar. We encourage clients to include us on the transfer details, but it is not required. We hold payment until the domain is accepted and both parties are satisfied. During the inspection period, once the buyer has received the domain, either buyer or seller may contact us with a dispute and we will verify and confirm with both parties to their and our satisfaction. Please feel free to contact me any security process concerns and I can go over them with you.

 

[stimpi777]

This has been a great thread to read. I want to thank all the people that contributed with there knowledge.