advice Need advice: Seller refuses escrow for 700$ domain purchase

[Paperhand]

I am in a tricky situation regarding a domain purchase. I agreed on the price 700$ with the seller for a domain that is not listed on any platform, but has a custom lander with contact info. The seller insists on selling directly via contract and wire transfer. He refuses to use any escrow or domaining platforms, even after I offered to take on all fees. WHOIS shows the seller's IT company in Switzerland, which looks active and legit. The domain history confirms he has owned it for the past 5 years. He has some niche domains listed on his company site, including this one. He sent me a proper contract, but it lacks any timeframe within which he must transfer the domain after receiving payment. He just wrote in the last email that he would send me the transfer code upon receiving payment.

So I am quite stressed about this: the domain is the perfect fit for my project (I am not buying it for resale) and I don't want to miss this opportunity. However, I would have zero security after wiring the money that he will fulfill his end of the deal. And there's not much I could do if he doesn't, as legal action wouldn't be worth it for this amount. Besides the obvious possibility of a scam, I can imagine that he just doesn't want to be bothered with dealing with platforms, and that he has his standard procedures. Being in Switzerland, maybe 600 CHF is just not worth the hassle to him.

My gut tells me to do the deal, as I'm fairly confident this business is active and legitimate (5-year domain ownership, active website, proper contract). However - what if he's undergoing bankruptcy? I tried calling the phone number on his website without success, though I myself rarely answer calls from foreign numbers due to spam. Have you dealt with similar situations? I know no one can tell me what to do, but how would you approach this decision? I really need this domain for my project as other options are significantly worse.

Thanks for any advice!

 

[Kyle Tully]

For me I guess a lot comes down to how much $700 means to you.

If it's an insignificant amount and you really want the name and the seller is stubborn then it might simply be worth the risk of sending the money and hoping for the best.

Assuming you've done all the due diligence you realistically can for a $700 purchase at some point if they won't budge then it's take it or leave it and write it down to a lesson learned either way.

But I'm somewhat of a risk taker when it comes to these sort of things A larger deal would be a different story but sub $1k it's hard to stress too much about imo.

 

[pb]

Since it;s a business, just ask them for an invoice (or a proforma) and pay it.

 

[korganian]

I am in a tricky situation regarding a domain purchase. I agreed on the price 700$ with the seller for a domain that is not listed on any platform, but has a custom lander with contact info. The seller insists on selling directly via contract and wire transfer. He refuses to use any escrow or domaining platforms, even after I offered to take on all fees. WHOIS shows the seller's IT company in Switzerland, which looks active and legit. The domain history confirms he has owned it for the past 5 years. He has some niche domains listed on his company site, including this one. He sent me a proper contract, but it lacks any timeframe within which he must transfer the domain after receiving payment. He just wrote in the last email that he would send me the transfer code upon receiving payment.

So I am quite stressed about this: the domain is the perfect fit for my project (I am not buying it for resale) and I don't want to miss this opportunity. However, I would have zero security after wiring the money that he will fulfill his end of the deal. And there's not much I could do if he doesn't, as legal action wouldn't be worth it for this amount. Besides the obvious possibility of a scam, I can imagine that he just doesn't want to be bothered with dealing with platforms, and that he has his standard procedures. Being in Switzerland, maybe 600 CHF is just not worth the hassle to him.

My gut tells me to do the deal, as I'm fairly confident this business is active and legitimate (5-year domain ownership, active website, proper contract). However - what if he's undergoing bankruptcy? I tried calling the phone number on his website without success, though I myself rarely answer calls from foreign numbers due to spam. Have you dealt with similar situations? I know no one can tell me what to do, but how would you approach this decision? I really need this domain for my project as other options are significantly worse.

Thanks for any advice!

Tell him you will be glad to use his platform to make the payment as soon as the domain is transferred to your registrar account.

 

[alcy]

where is domain???

most registrars offer quick buynow setup for owner. 2 seconds to do

u click buy.. pay.. he gets money asap then can wire it..and u get name pushed asap

its actually easier than wire plus transfer code

tell him this

plus pay fee

if he doesnt agree it's a scam.
cause there is no reason to not agree to this

if register doesnt allow tell him to transfer it to dyna or sav. then make the buynow

gl

 

[The Durfer]

say no unless you can use escrow or crypto. ty.

 

[The Durfer]

or maybe risk less and say you dont send more than $500 direct to anyone.

 

[alcy]

say no unless you can use escrow or crypto. ty.

he cant get back crypto bro

 

[STIJL]

A company won’t pay an escrow fee for a $700 purchase? This is a red flag.

 

[alcy]

For me I guess a lot comes down to how much $700 means to you.

If it's an insignificant amount and you really want the name and the seller is stubborn then it might simply be worth the risk of sending the money and hoping for the best.

Assuming you've done all the due diligence you realistically can for a $700 purchase at some point if they won't budge then it's take it or leave it and write it down to a lesson learned either way.

But I'm somewhat of a risk taker when it comes to these sort of things A larger deal would be a different story but sub $1k it's hard to stress too much about imo.

every one is risk taker who xan afford to be. whether crypto or anything.

obviously is op is asking this then he probably cant put 700 on black and spin the roulette

 

[The Durfer]

see if you can use paypal, so if he doesnt give you the domain you can request a refund.

 

[Kyle Tully]

A company won’t pay an escrow fee for a $700 purchase? This is a red flag.

Its sounds more like the guy isn't familiar with escrow services and is used to doing business with his own contract and wires. I've dealt with a few people like this over the years.

 

[The Durfer]

shady, defensive, move on or risk it. Its your call not ours.

 

[johnn]

The problem I can see is you sound like you desperately need the name. Even if you really need it just don’t show it to the seller.
Get back to him and say:
I don’t really want the name anymore unless you want to go to escrow. Get back to me when you ready for escrow otherwise good bye.

 

[homebuyer]

I am in a tricky situation regarding a domain purchase. I agreed on the price 700$ with the seller for a domain that is not listed on any platform, but has a custom lander with contact info. The seller insists on selling directly via contract and wire transfer. He refuses to use any escrow or domaining platforms ...

"I have here in my hand a piece of paper which bears a signature which makes it clear that there is no intention to go to war," Neville Chamberlain said after signing the Munich Agreement. He believed that paper guaranteed peace. But we know how that turned out.

It's like wiring $700 to a seller before you get the domain. Sure, everything might seem legit—the seller looks good, the contract seems fine, and the domain is perfect for your project. But you're trusting that promise without any real protection.

Neville chose peace through a weak piece of paper. You should choose peace through strength, with peace being peace of mind and strength being escrow.

 

[forge]

Its sounds more like the guy isn't familiar with escrow services and is used to doing business with his own contract and wires. I've dealt with a few people like this over the years.

With the KYC requirements for Escrow, I wouldn't want to waste my time either.

 

[bmugford]

I am in a tricky situation regarding a domain purchase. I agreed on the price 700$ with the seller for a domain that is not listed on any platform, but has a custom lander with contact info. The seller insists on selling directly via contract and wire transfer. He refuses to use any escrow or domaining platforms, even after I offered to take on all fees. WHOIS shows the seller's IT company in Switzerland, which looks active and legit. The domain history confirms he has owned it for the past 5 years. He has some niche domains listed on his company site, including this one. He sent me a proper contract, but it lacks any timeframe within which he must transfer the domain after receiving payment. He just wrote in the last email that he would send me the transfer code upon receiving payment.

So I am quite stressed about this: the domain is the perfect fit for my project (I am not buying it for resale) and I don't want to miss this opportunity. However, I would have zero security after wiring the money that he will fulfill his end of the deal. And there's not much I could do if he doesn't, as legal action wouldn't be worth it for this amount. Besides the obvious possibility of a scam, I can imagine that he just doesn't want to be bothered with dealing with platforms, and that he has his standard procedures. Being in Switzerland, maybe 600 CHF is just not worth the hassle to him.

My gut tells me to do the deal, as I'm fairly confident this business is active and legitimate (5-year domain ownership, active website, proper contract). However - what if he's undergoing bankruptcy? I tried calling the phone number on his website without success, though I myself rarely answer calls from foreign numbers due to spam. Have you dealt with similar situations? I know no one can tell me what to do, but how would you approach this decision? I really need this domain for my project as other options are significantly worse.

Thanks for any advice!

I assume you contacted the domain owner?

I doubt there are many scammers in Switzerland waiting for people to contact them about a domain, only to scam them for $700.

I don't really blame someone for not using Escrow, as the KYC is kind of a pain in the butt for a small dollar transaction.

A contract for a $700 transaction is barely worth the paper it is written on though.

Taking legal action, especially in a foreign country, would be so expensive it would be pointless.

So, it's kind of a crapshoot if the owner is not willing to use some other method.

Brad

 

[pb]

With the KYC requirements for Escrow, I wouldn't want to waste my time either.

You're thinking of escrow.com. But there is also Sedo Escrow, which might be both more familiar to a European entity, and less annoying to use.

 

[bmugford]

You're thinking of escrow.com. But there is also Sedo Escrow, which might be both more familiar to a European entity, and less annoying to use.

I generally use an escrow service or marketplace and pretty much never do direct wires.

However, in many other places in the world direct wires are far more common.

I know some domain investors (mainly in Europe) that make end user sales using wire transfer.

It's not that crazy to ask for that and not have to hassle with a bunch of extra effort, especially if you are not an active domain seller.

Brad

 

[louddrums]

I've dealt with a buyer in Switzerland, and one in Norway and they tend to use contracts/attorneys. One actually mocked escrow.com ($10,000 transaction) and said they never heard of it and don't really trust that. They were very risk adverse and thought it was scammy. So that's the point of view those guys tend to have. Just do as much due diligence as possible til you're comfortable.

 

[URL Stream]

The following relevant information is sourced from a recent article linked here:
https://www.namepros.com/threads/interview-with-stevan-lieberman-of-escrowdomains-com.1346064/
https://www.thedomains.com/2025/02/12/interview-with-stevan-lieberman-of-escrowdomains-com/

Interview with Stevan Lieberman of EscrowDomains.com​

Q2) There are a good number of domain investors who do not like the KYC rules—they refuse to send an escrow company their driver’s license or national/state I.D. card. What would you tell them to try to ease their apprehension?

Answer: We understand the hesitation some domain investors have about sharing personal information. However, a quick phone call or video chat often alleviates their concerns, as we can explain precisely how their details are protected and why KYC helps ensure a secure, compliant transaction for all involved. In the rare instances where individuals still choose not to comply, we unfortunately cannot proceed with their transaction. Maintaining compliance and safeguarding everyone’s interests remain our top priorities.


Q3) What are risks that buyers and sellers take when using an unlicensed escrow or payment site?

Answer: Unlicensed services operate without regulatory oversight or professional accountability, which can expose buyers and sellers to fraud or misappropriation of funds. If an unlicensed provider makes a mistake or absconds with assets, you could be left with limited legal recourse and no guaranteed path to recover your money. By contrast, our law firm is subject to bar association regulations, and we also carry robust Errors and Omissions ($1,000,000/$2,000,000) as well as Crime coverage ($10,000,000). This accountability and insurance protection provide a higher level of security and recourse in the unlikely event something goes wrong.

 

[NameGroove]

I would do this:

I would offer to pay $350 (or possibly $500 upfront) and the rest on delivery of the name. If he balks and says, how can I trust you... you ask him the same... basically teaching him that he wants you to trust him, but he doesn't trust you. If he wants trust, he has to give trust. However, if he cannot offer trust, you totally understand which is why you'd prefer to use Escrow and pay all fees - because of the reason he just explained.

 

[VadimK]

Do you have any proof that he is actually the owner of the name?
Apart from that I agree with @Kyle Tully , that there are people out there that do things ''old way''.

I would do the following:

1. Try to make sure he is the owner of the name (can point nameservers anywhere you both agree on)
2. You can try to convince him to use any platform for payment, with the condition that you will pay the commissions.
3. If no luck with point 2. - ask for the invoice and try to find online if the details are real.

If you are convinced the company and person are real, and name does belong to him - you can take this risk. Sure, it can go either way, but It will be more or less a calculated risk at least.

 

[NameGroove]

Do you have any proof that he is actually the owner of the name?
Apart from that I agree with @Kyle Tully , that there are people out there that do things ''old way''.

I would do the following:

1. Try to make sure he is the owner of the name (can point nameservers anywhere you both agree on)
2. You can try to convince him to use any platform for payment, with the condition that you will pay the commissions.
3. If no luck with point 2. - ask for the invoice and try to find online if the details are real.

If you are convinced the company and person are real, and name does belong to him - you can take this risk. Sure, it can go either way, but It will be more or less a calculated risk at least.

I do like #1 - he should def do this. Good idea

 

[Paperhand]

Wow, I am overwhelmed by your helpful feedback, thanks a lot!

I like the domain so much that I would rather risk the amount than not trying to get it. However, after being unable to reach him on his company's mobile, I kindly asked him to give me a brief call to talk about the transfer. I got no answer whatsoever, and this is just a line I can't cross: If a brief and friendly call (like all my communication so far) is too much for him, I cannot realistically assume he would make the effort and follow through with the transaction. (Well, ofc I can imagine him being an arrogant but correct Swiss prick..)

To address some suggestions here: The money is too much not to be bothered by it at all, and it's also about principles. I still remember how I got scammed in one of my very first eBay deals many years ago. It was just for 150€, but it still hurts... Also, we're talking about Switzerland, and the 600$ after taxes is not a lot more than a night out with the boys. Initially, his asking price was almost double this amount, which makes me wonder who would send him 1,000$ without any security upfront. Or it's just an older fellow who wants to stick to his routine. I guess he's best reached by fax

As a last possibility, I can well imagine a honeypot business waiting for offers, always asking just enough that no one would take the effort to really go after him. I will do the transaction if he makes the call; otherwise, c'est la vie...I will let you know how it unfolds.

BIG THANKS again.

(to give some more answers: I am pretty sure it is his domain: whois points to his company, it is the domain he uses in his email, he is not pushy at all, just the opposite.. an I already offered him to pay the fees, for any of his preferred platforms - sedo, afternic, escrow.com... And yes I am desperate, as I do like the name and am also running out of the project timeline. Also, I do not think that he is giving it away below value. It is a nice name, but a niche of a niche thing...)