Buying a Domain, am I being scammed?

[Attila]

I have bought domains for the past 8 years and always used escrow for safety. However this one guy claims to be doing big numbers and has me a little shaky since I don't have deep pockets.

I am buying this domain for $5000 usd and will be using escrow.com for the transaction.

However get this, he is throwing in another domain for free claiming its for tax purposes. He says the domain he is giving me for free is older then a year and has to pay 15% tax compared to a recently acquired domain, 35% tax. This is in USA, if you're curious.

For instance, in the escrow transaction he sent me invoice showing:

free domain = $4000
the domain I want = $1000

He also set the inspection period to 1 day...not sure what difference it means. Maybe he gets paid quicker?

Inspection Period: 1 calendar days

The domain is registered at tucows, which I am familiar with.

Last minute of the deal, he says "get a fabulous.com account" because he wants to transfer to there. I went to the website, seems legit, but also one of those registrars I never heard of unlike (godaddy, register, directnic, tucows, and more).

So I don't know what to think. Is there some kind of scam floating around that I am unaware of?

I am personally having doubts with this registrar Fabulous. Say I pay the money, few days, weeks or months later the domain disappears because he did something?

I asked him to transfer to my DirectNIC account, he said too late, he already transferred from tucows to fabulous.

Won't tell you the domain, so don't ask.

Thanks in advance for your help and opinions. I've always known of this website for domain sales and just paid $20 to get my question~worries anwered...

-Steven

 

[Sonny Banks]

Never happened to me this in past.
I suggest you to use EscrowDns.

Ask him again to transfer in your DirectNIC account.

 

[jasdon11]

Can't speak for the transaction itself, but as far as Fabulous are concerned, they are a very legitimate company - one of the best respected, not least from a security point of view.

 

[GUA]

I think what he will do is something along the lines. You pay the $5,000. He pushes the 'free' domain, escrow confirms that, then he backs out on the 'real' domain you want, so escrow refund you $1,000. I.E you pay $4,000 for something you dont want...

 

[stewie]

too many unknown details to say forsure...but always trust your gut.

*Fabulous and one day inspection is fine. but the rest is your call. inspection should take 15seconds...just don't accept until you double check its the correct spelling and the domain you wanted.

Good Luck :yo:

 

[Stian]

Fabulous is one of the best registrars out there and 1-day inspection is normal. Actually I have a domain in Escrow right now (I am the seller) and the buyer insisted on a 7-day inspection period, which I found very unusual.

 

[Attila]

I think what he will do is something along the lines. You pay the $5,000. He pushes the 'free' domain, escrow confirms that, then he backs out on the 'real' domain you want, so escrow refund you $1,000. I.E you pay $4,000 for something you dont want...

I emailed escrow.com asking if this happens what they will do. Its a good thing I initiated first invoice to the seller from escrow.com website showing escrow I am clearly after a premium domain and not some domain the seller is throwing in for free.

Will update this thread once escrow replies...

Seller also agreed to send to my directNIC, so I guess its the matter of sorting out this escrow invoice.

 

[Biggie]

Hi

if he has already transferred the domain to Fabulous, then it's possible it cannot be transferred again to Directnic right now...if Fabulous also has the "60 day" waiting period for new transfers.

Also, Mike Fabulous is a member here, and you could contact him with the details of the domain and the transaction so he could be on the lookout.

Good Luck!

 

[copper]

I am buying this domain for $5000 usd and will be using escrow.com for the transaction.

However get this, he is throwing in another domain for free claiming its for tax purposes. He says the domain he is giving me for free is older then a year and has to pay 15% tax compared to a recently acquired domain, 35% tax. This is in USA, if you're curious.

For instance, in the escrow transaction he sent me invoice showing:

free domain = $4000
the domain I want = $1000

He also set the inspection period to 1 day...not sure what difference it means. Maybe he gets paid quicker?

1 day inspection - It's ok as long as everything check out.
Fabulous - ok
Seller can NOT transfer to another registrar if seller already transferred to Fabulous for 60 days, I think.
Tax purpose - This does make sense to benefit seller.

I am NOT sure what would happen if seller back out from real domain you want.

 

[dotNetKing]

> free domain = $4000
> the domain I want = $1000

Seller is fiddling/fixing wanting to use data that is not true.

Personally I would feel unhappy with aiding and abetting this, especially if it turned nasty. If you own the domain, you should be able to call the shots.

Just my feelings on the matter.

 

[rentdn]

I would insist the seller to use escrowdns.com

I would not feel comfortable . as I'm not sure what will happen if seller transfer the free domain to you , and not the real one

I think in that case you'll get refund 1000$

If i would be in your case , probably I'll refuse to deal on that terms

 

[TheLegendaryJP]

While there is a angel there to be leary of it may just be a way to evade taxation, can not see it as he still has to account for the $4k but...

If it was me I would demand just the name you want and nothing more. START OVER!

 

[Stian]

While there is a angel there to be leary of it may just be a way to evade taxation, can not see it as he still has to account for the $4k but...

If it was me I would demand just the name you want and nothing more. START OVER!

I agree, even if the Escrow transaction shows $5,000, his bank statement will not. :uhoh:

 

[rentdn]

Just a thought

Why not to open 2 different transactions ?

In that case you'll be safe

 

[MrGoodhost]

Nothing is really for free, it comes at some sort of price. If the "free domain" shows $4000, then it isn't free, is it? On paper it still isn't free. What's his/her logic?

 

[Attila]

Please note that Escrow.com will not release funds until you have full control of all the domain names you are purchasing. If your Seller transfers one domain, you must notify Escrow.com that the transfer is not complete. We will then continue to hold and secure the funds until the transaction is complete. Unfortunately, due to security purposes, Escrow.com will not be able to release any information about the other party. However, your Seller has had many transactions with Escrow.com. Thank you.

Marichelle B. Olaño
Escrow.com
16251 Laguna Canyon Road Suite #150
Irvine, CA 92618
Toll Free 888.511.8600
International 949.790.5890

So there it is, I will test the waters and move forward with the transaction.

Thanks for all your help guys. I think I will stick around and get more involved. This seems to be a neat lil community you guys have.

-Steven

 

[Focus]

Good luck dude....I would be careful about helping people to break tax laws...esp. when you have constructive knowledge of such. The IRS are everywhere, better to keep on the up & up. There is one law I do not bend ever and that's the US tax code.

 

[jdk]

I would tell him you just want the one domain and not fiddle around with the second.

 

[copper]

If that's your decision, good luck with it
And welcome to DNForum.

So there it is, I will test the waters and move forward with the transaction.

Thanks for all your help guys. I think I will stick around and get more involved. This seems to be a neat lil community you guys have.

-Steven

 

[Attila]

yep, I hear you. I am a Canadian citizen living in China and Hong Kong with off shore banking. I am good where I am at, hehe.

I put the wheels in motion. Will let you all know of the results when everything is over.