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!

 

[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...)

 

[Paperhand]

The Durfer gave me an idea - maybe paying via paypal (goods&services) will give me some protection... any experiences with buying a domain this way?

 

[DN_Hunter]

Is this seller a domainer or just a person who owns a domain name you want? If a domainer, could they provide a couple of references for successful sales? If not a domainer then your plan seems ok based on your need for the name -- just hope you get a friendly call from the seller to chat about it... Good luck!

 

[Paperhand]

He offers IT and other services for a niche, and in a small section on his site lists about a dozen domains all relating to this niche, as a side-offer. I was already interested in this domain about a year ago and took a look, the list looks now more or less the same. My guess is that some time ago he learned about domaining and had some business plan ideas (as many of us do, before reality hits ), secured some nice looking names that he could get hold of and where he had some understanding. Also, most of them are Switzerland-related, that's why he established his way of doing domain business.

Well, I'm just trying to guess what's going on, as the shadows are hitting the wall in front of me...

 

[enterscope]

It could be legit, but if it's not and you get scammed then I doubt you will ever do a no escrow deal again.

So might as well not do it now.

 

[Mister Funsky]

I wish you luck in whatever course you take...some sound advice here from other members.

Just wanted to share that when I saw 'Switzerland' my skin crawled a bit...reminds me of a monster of a person in the domain world that ripped off a lot of people!

Not sure if anyone mentioned it, but if the seller has a Godaddy account, he/she could create a checkout link for you...you both would be protected.

 

[bmugford]

If I initiated contact with the owner, and it was a domain I really wanted, I would probably roll the dice for $700.

It's a risk, but one I would be willing to take.

If the owner initiated contact, that would be a different story.

Brad

 

[forge]

Time/energy/oxygen is money. I think you're approaching the $700 expense mark if you're not there already.

The guy's being difficult to a fault. Let it go.

 

[xbank]

Just pay and do it .. before he changes his mind and if you got a great bargain .. take your chances man, life is about taking chances

 

[DrJacoby]

Just wanted to share that when I saw 'Switzerland' my skin crawled a bit...reminds me of a monster of a person in the domain world that ripped off a lot of people!

As far as I know, the Monster is from the Netherlands, not Switzerland.

 

[xbank]

As far as I know, the Monster is from the Netherlands, not Switzerland.

not too far yeah .. couple of hours of drive

 

[bmugford]

As far as I know, the Monster is from the Netherlands, not Switzerland.

Epik, a domain name registrar, used to describe itself as the "Swiss bank of the domain industry".

 

[Wesley S]

The Durfer gave me an idea - maybe paying via paypal (goods&services) will give me some protection... any experiences with buying a domain this way?

it would still be a matter of sending him is money via his paypal email but when you do the transfer of the domain or if he gives you an auth code and something just doesnt work out you can go to paypal and request a refund because you didnt get the domain.

 

[Mister Funsky]

As far as I know, the Monster is from the Netherlands, not Switzerland.

True (roots are in the town of Monster, Netherlands) but the Swiss thing got thrown around a bit...you know, because things were so secure, etc.

 

[jamesau]

(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...)

The hassle of changing an email address for $700 is slightly suspicious. It would take me more than $700 of effort to update my email everywhere.

 

[alcy]

who else notices we spent 78 hours replying to him and helping and bro seems totally mia