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How safe is it purchasing a domain via a payment plan?

Labeled as advice in Domain Buying and Selling Discussion started by LouLou, Sep 11, 2019.

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  1. LouLou

    LouLou New Member

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    I am planning to purchase a domain on a payment plan using the Escrow Domain Name Holding service, however, I would like to know, how likely is it that I would get scammed by doing this? I talked to Escrow about this and they said if the seller changes their mind and decides to back out of the deal in the midst of the contract, they would release the domain back to them and I would lose all payments already made to them. So, I am wondering if it is even worth doing a payment plan given the risks? Or has anyone done this before successfully? Would really appreciate anyone's input on this. Thank you!
     
    Last edited: Sep 11, 2019
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  2. hawkeye

    hawkeye Top Member PRO VIP ★★★★★★★★★★

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    That doesn’t sound right that a seller can collect funds then cancel at a whim and the buyer loses his payments!?!?
    Is this right, and is it what they told you?
    Was this Escrow.com?
     
  3. LouLou

    LouLou New Member

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    Yes, it is Escrow.com, and I wish I saved a copy of the chat, but that is what they told me when I asked them specifically what would happen when the seller backs out while payments were already made to them. Seller gets the domain back and I lose my payments.
     
  4. hawkeye

    hawkeye Top Member PRO VIP ★★★★★★★★★★

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    Maybe @Jackson Elsegood can clarify this, because the way you say you were told above, sounds like a great way to fleece domain buyers with no downsides to the seller or Escrow.com.
     
  5. john888

    john888 Established Member

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    Read the buyers and sellers contract. If you default on payment the seller gets the domain name back.

    5. Delivery of Escrow Items by Escrow Agent. Escrow Agent agrees to deliver the Escrow Items as follows: a. To Purchaser. At the time Purchaser has made all payments due under the Payment Schedule, the Escrow Agent shall deliver the Escrow Items to Purchaser within five (5) business days. 2651340-620704 VA.org b. To Seller. If Purchaser fails to make a payment due under the Payment Schedule, Seller may declare a default by sending Purchaser a notice of default. Such notice of default shall also be sent in writing to the Escrow Agent. If the Purchaser fails to cure the default within five (5) business days following such notice, Seller shall have the right to notify the Escrow Agent (with a copy to Purchaser) of such failure and demand delivery of the Escrow Items. Escrow Agent shall deliver the Escrow Items to Seller within five (5) business days after the default cure period has passed.

    Have Escrow managing the DNS. To do this Escrow has the domain name in their possession and seller is waiting for payments.

    Have financial records that you payed Escrow in a timely fashion then you can sue Escrow if you get shafted.


    https://s3-us-west-2.amazonaws.com/...e+Holding+Purchase++(Escrow+Managing+DNS).pdf
     

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