What to Do if a Flippa Buyer Won't Release Escrow Payment?

[shopman]

I posted my website for sale on Flippa 11 days ago and sold it via a post-auction negotiation. The buyer made an Escrow payment and I transferred all website assets to the client and pushed domain names into his account. The following day, I transferred all the social media profiles to him and took him through the website. I gave him a few days to familiarize himself with site and then asked him to release payment.

He refused to release the Escrow payment on the grounds that the WHOIS contact details still contain my name and contact details. What happens with the concerned domain registry is that when an Internal Domain Name Transfer occurs, it takes 5 days for the WHOIS to reflect the details of the new owner if he makes a contact update. The client said he had made a WHOIS contact update 2 days prior to our communication 5 days ago so I needed to wait for 3 days for the update to reflect and then he would release the payment. I was in a holiday mood so I decided to wait for 5 days. Today, the WHOIS contact details still reflects my name and according to the client's logic, he still will not release Escrow payment. I am not even sure he has made the WHOIS contact change because I am yet to receive an email to that effect. What if he he is using this little loophole to hold payment in Flippa Escrow indefinitely, for whatever reason?

I have contacted Flippa support team but so far, they have given standard responses and asked me to work this out with the client. The problem is the client is very rude and intransigent. What should I do in this kind of situation? This is my first sale on Flippa. Are these kinds of experiences common? How long does it typically take to conclude a Flippa transaction once a seller has transferred all assets to the buyer?

Worse still, after transferring all my website assets to this client, he went ahead and redesigned the websites, digital assets and added his own Adsense and Amazon ads. He even increased prices so he is already earning money from my (former)website but won't release payment. What should I do in this kind of situation? Am I being too paranoid?

 

[Kuffy]

I'd get a letter from the gaining registrar to say that the name has been transferred, and send that to Flippa. Then I would reconsider using flippa, and consider a registrar that provides escrow with a name push.

 

[shopman]

I'd get a letter from the gaining registrar to say that the name has been transferred, and send that to Flippa. Then I would reconsider using flippa, and consider a registrar that provides escrow with a name push.

Even if I got that letter, it is the client who still has to release the payment, no? Can Flippa force a buyer to release Escrow payment? I have several websites I still need to sell via Flippa and I don't want to be a harsh judge based on my first nasty experience. What I want to know is what Flippa typically does in cases where you have a buyer who puts money in Escrow and simply sits on it indefinitely even after receiving digital assets.

 

[shopman]

......and consider a registrar that provides escrow with a name push.

That could have been ideal in this kind of situation. Unfortunately, the horse is already out of the barn.

 

[DN_Hunter]

The following is what I experience at GoDaddy, so I'm not sure if all registrars follow the same procedure. That being said, this is a long shot but maybe something to check on your side.

When you do a WHOIS change, I believe ICANN rules are to send an email to the CURRENT and NEW email address for the domain name. Check if you received an email (check your inbox, junk/spam folder for this email). You might have to click the link to review the WHOIS changes, and then Approve them.

Regards,
DN