advice The need to know your buyer in escrow transactions

[ultradog]

It suddenly appears a much riskier thing to push a domain in a transaction (not to mention transfer). I must have an 17 or 18-year history of using Escrow.com, but it was suggested to me on the phone with them that if a new Whois contact information did not exactly match that of the buyer’s Escrow account info, and the buyer fails to click the button “Received the domain,” then they have “no way to prove” that the domain went to the right buyer.

The sale in question was to a large company. Both the registrar account I pushed the domain to, and the escrow account, used email boxes at “XYZcorp”.com. However, the escrow account was listed under one executive’s name, and the Whois information showed another executive’s name and email.

I also forwarded the push confirmation from my registrar. I was told by Escrow.com this “helped,” but was not definitive. I suppose technically they’re right, but….

The buyer finally clicked that acknowledgement button, but the whole event has given me new concerns.
Guess you've got to ask for all the contact info and tell them it needs to match.

 

[iTerminal]

Wise warning. For similar reasons, you need to make sure the buyer isn't under privacy.

 

[hookbox]

It costs some extra money but for some transactions it may be worth paying for or splitting the fees with the buyer and using their concierge service.

https://www.escrow.com/domain-conci...3Fh%25253Db%252526referrerOverride%25253Dnone

 

[creataweb]

Yep this is a problem especially if you deal with an organization. If they have a rep who is doing the transaction (using his/her info) but the owner is the company itself that could cause major issues.
Same with the privacy on the domain. I had a nightmare transaction that took weeks and weeks along with countless emails and calls to 2 registrars.

 

[nlandu]

If the buyer, with the intention to defraud you, tells you to push or transfer the domain name to a registrar account that belongs to his/her friends there is no way the new whois information would match the buyer information, so Escrow would not give you the money if the buyer does not confirm that he/she got the domain name, and a fraudster buyer has no reason to confirm that he/she received the domains.
It is better to use Escrow concierge, it is expensive though

 

[Jackson Elsegood]

Having a buyer accept a domain themselves is the way that I prefer to close out a transaction, but unresponsive buyers are definitely not rare - especially if it's a first-time buyer. If a buyer is completely unresponsive to our phone calls and emails, we use data like the whois and emails from the seller's registrar to start the inspection period on their behalf. I'm glad to see that for this transaction the team was able to get the buyer to respond and accept the domain themselves.

As Hookbox says, the Domain Concierge service is an option and can definitely be an asset if you expect that the buyer will disappear as soon as they have the domain. The Concierge will hold the domain and the funds and release the domain to the buyer and funds to the seller at the same time, avoiding the need to wait out the transfer and inspection period.

Jackson

 

[ultradog]

Actually Escrow has in the past helped solve problems I had with buyers who didn't follow procedures.

 

[wwwweb]

I have often thought of this scenario, and via Auth code I am in this situation today also, as their Whois did not land as stated in their profile.

We will see what happens.

 

[Donnyd]

IMO, I would just cancel the entire transaction and have them start over.

If the buyers email in escrow does not match where you are transferring the name then I would not do it.

Tell all buyers to do this up front before even starting the transaction.

To much of a risk, or do the Concierge service if the other party wants to use two different email addresses.

Don

 

[nlandu]

I think 99,99% of buyers either have no intention of defrauding sellers or ignorantly think it is impossible to defraud sellers. If you don't use Escrow concierge a buyer can easily defraud the seller. Even if the email or whois match it won't prevent a fraud because you have transferred or pushed the domain to the buyer he/she can transfer the same domain to someone else account(an accomplice) or to his/her other account bearing a different name with a different or same registrar, and whois changes immediately once it is edited.
So better use escrow concierge, though it is expensive

 

[wwwweb]

I think 99,99% of buyers either have no intention of defrauding sellers or ignorantly think it is impossible to defraud sellers. If you don't use Escrow concierge a buyer can easily defraud the seller. Even if the email or whois match it won't prevent a fraud because you have transferred or pushed the domain to the buyer he/she can transfer the same domain to someone else account(an accomplice) or to his/her other account bearing a different name with a different or same registrar, and whois changes immediately once it is edited.
So better use escrow concierge, though it is expensive

I think if such a situation like this does occur, escrow would do a serious investigation before returning funds.

Simply can't be that easy to game the system.

 

[DN_Hunter]

I'm glad escrow finally started offering the "Concierge" Service. But I did not like that it basically DOUBLED the fees associated with using their service. So it's basically up to your "comfort level" on whether to use Standard or Concierge Service.

NOTE: I just crunched some numbers, and if you are planning to use Concierge Service, it appears anything less than around $12,000 USD you could save by using SEDO's Transfer Service (assuming you DO NOT have the domain name listed on SEDO's platform). SEDO charges 3% for their Transfer Service if you setup the sale outside of their site.

$12,000 is roughly the same fee, and above $12,000 then Escrow Concierge starts to save over SEDO Transfer Service (Name NOT listed on SEDO's pages).

Example: $8,000 Domain Name Sale
Escrow Concierge = $340
SEDO Transfer Service = $240

 

[Cdomains]

Never had a problem with this so far.

I hope Escrow/com finds a cheaper way to handle or fix this, or we will find another company that will.

A bit concerned for future transactions now.

 

[hookbox]

I'm glad escrow finally started offering the "Concierge" Service. But I did not like that it basically DOUBLED the fees associated with using their service. So it's basically up to your "comfort level" on whether to use Standard or Concierge Service.

NOTE: I just crunched some numbers, and if you are planning to use Concierge Service, it appears anything less than around $12,000 USD you could save by using SEDO's Transfer Service (assuming you DO NOT have the domain name listed on SEDO's platform). SEDO charges 3% for their Transfer Service if you setup the sale outside of their site.

$12,000 is roughly the same fee, and above $12,000 then Escrow Concierge starts to save over SEDO Transfer Service (Name NOT listed on SEDO's pages).

Example: $8,000 Domain Name Sale
Escrow Concierge = $340
SEDO Transfer Service = $240

Easily worth the added $100 cost if you feel something could actually go wrong with the transaction. Peace of mind is well worth 100 bucks. Most of the time the buyer would be more then willing to split this added cost because it makes the transaction safer for both parties involved.

 

[biggie]

with the new icann policy

the old registrant gets an email notification of "change of registrant" with the new registrants' info listed as well.

just closed a deal and received such, as verification of transfer.


imo..

 

[TheWatcher]

Escrow or other third party service will minimize risk of transferring/selling your domain asset.

 

[OralB]

I've already been through this nightmare scenario and the buyer was this self-proclaimed top broker.

The good people at Escrow.com certainly did help to ease the stress and after a lot of emails and phone calls did manage to get the funds released.

I will be creating a name and shame post soon, watch this space.

 

[DN_Hunter]

Easily worth the added $100 cost if you feel something could actually go wrong with the transaction. Peace of mind is well worth 100 bucks. Most of the time the buyer would be more then willing to split this added cost because it makes the transaction safer for both parties involved.

You are not understanding what I wrote. I agree the service is great for Peace-of-mind. But my point is that SEDO's Transfer Service does the exact same thing (name must not be listed on Sedo's Platform -- you deliver the domain to Sedo, and then Sedo delivers it to the buyer). So why pay $100 more for the exact same service?

Anything under $12K you pay more using Escrow Concierge vs. Sedo Transfer. Above $12K and you pay less using Escrow Concierge. BOTH Services do the same thing.

 

[hookbox]

You are not understanding what I wrote. I agree the service is great for Peace-of-mind. But my point is that SEDO's Transfer Service does the exact same thing (name must not be listed on Sedo's Platform -- you deliver the domain to Sedo, and then Sedo delivers it to the buyer). So why pay $100 more for the exact same service?

Anything under $12K you pay more using Escrow Concierge vs. Sedo Transfer. Above $12K and you pay less using Escrow Concierge. BOTH Services do the same thing.

I agree with you but I do believe Escrow.com comes across as more trustworthy looking to the buyer. I also would never want to direct my buyer to a place like Sedo that has hundreds of thousands of other options that the buyer may want instead of my name. Most buyers are clueless that Sedo, Godaddy, Afternic etc...even exist so no reason for me to let them know there are other options they may like better than mine.

 

[wwwweb]

You are not understanding what I wrote. I agree the service is great for Peace-of-mind. But my point is that SEDO's Transfer Service does the exact same thing (name must not be listed on Sedo's Platform -- you deliver the domain to Sedo, and then Sedo delivers it to the buyer). So why pay $100 more for the exact same service?

Anything under $12K you pay more using Escrow Concierge vs. Sedo Transfer. Above $12K and you pay less using Escrow Concierge. BOTH Services do the same thing.

Sedo continues to falter, if they streamlined their Escrow operations into a larger scale open platform, they could win over a lot of business. They are probably scared of losing commission revenue though.

I stopped using Sedo for landing my domains about 5 years ago, but I still get many low ball, and sometimes serious offers. The escrow side of it pushes, and closes quick. I really like this over auth code headaches.