Domain broker asked me to transfer my domain into his account for $1 to do brokerage

[james2002]

Read this domain news here.

Any experience like this?

 

[A D]

I would never agree to that, its a very odd request to say the least.

-=DCG=-

 

[Melly]

The only time I have ever done this is when the seller actually asked me to. Normally I would never ask the seller to do that unless I was afraid that something wouldn't go right and I was also accepting the money as well and basically middling the sale. I wouldn't really be comfortable pushing my own domain to someone else if they were brokering for me.

 

[ninjadomain]

Who's the broker?

 

[james2002]

He said that he had sold gambling domains in xxx,xxx range. According to profile, he lives in Las Vegas and he has been a dnforum member since 2002.

Even if he is very reputable, I would not do that because if he got dementia or some retrograde memory impairment, it would be problem.

He can still broker the domain if he likes without the domain under his ownership.

 

[Tia Wood]

He can still broker the domain if he likes without the domain under his ownership.

Ditto. Also showed a broker friend of mine your post and he said that isn't normal either.

 

[Theo]

You said he's an exclusive member so out the guy already. In my opinion, this is not entirely out of place - he most likely sees this as a method to "officially" use his contact info for the domain - however I would not do that without a written agreement.

 

[DaddyHalbucks]

If you read the Moniker escrow agreement, they do something similar. Here is the exact language:

"Seller and Buyer acknowledge that DomainSystems, Inc. will become the legal owner and registrant of the domain name during the escrow process before reselling the domain name to the buyer."

 

[james2002]

If you read the Moniker escrow agreement, they do something similar. Here is the exact language:

"Seller and Buyer acknowledge that DomainSystems, Inc. will become the legal owner and registrant of the domain name during the escrow process before reselling the domain name to the buyer."

Escrow is different from domain brokerage. If the domain is worth x,xxx, I may try it but I really think this domain may be worth six figures due to easing up of online gambling in US recently. I wouldn't want to take risks with this. For example, if you got hit by someone and you got unconscious and lose your memory, I would have lost this domain. People may still broker the domain with the domain under my ownership.

 

[Theo]

The thing is, you seem to imply malice in this action, however it's common when high profile domains are involved - obviously, never without a signed contract. To put it plainly: a broker that wants to undertake the brokering of an expensive domain and thus invest time and effort into contacting the right people, would not want to risk those contacts bypassing him.

 

[DaddyHalbucks]

Escrow is different from domain brokerage. If the domain is worth x,xxx, I may try it but I really think this domain may be worth six figures due to easing up of online gambling in US recently. I wouldn't want to take risks with this. For example, if you got hit by someone and you got unconscious and lose your memory, I would have lost this domain. People may still broker the domain with the domain under my ownership.

I think it might be worth six figures, but the buyer will decide that, not me.

Larger value transaction are really not that much different from smaller ones.

If you have a contract that states the domain is yours if the reserve is not met or the transaction does not go through for some other reason, the company has to give you back the domain. The death of a person doesn't affect it.

 

[james2002]

The thing is, you seem to imply malice in this action, however it's common when high profile domains are involved - obviously, never without a signed contract. To put it plainly: a broker that wants to undertake the brokering of an expensive domain and thus invest time and effort into contacting the right people, would not want to risk those contacts bypassing him.

Yes, understood. But still couldn't understand selling it for $1 etc... and if I agree with this, because it is a sale agreement, I am worried not to get the domain back. To do this as you said, the contract might be very complicated.

---------- Post added at 09:26 PM ---------- Previous post was at 09:21 PM ----------

I think it might be worth six figures, but the buyer will decide that, not me.

Larger value transaction are really not that much different from smaller ones.

If you have a contract that states the domain is yours if the reserve is not met or the transaction does not go through for some other reason, the company has to give you back the domain. The death of a person doesn't affect it.

Ok. I see. Will have to give sometime to have a think about this. I may consult the domain lawyer to arrange some contract regarding this if I like to go ahead with this. Have never done such thing.

 

[DaddyHalbucks]

Yes, understood. But still couldn't understand selling it for $1 etc... and if I agree with this, because it is a sale agreement, I am worried not to get the domain back. To do this as you said, the contract might be very complicated.

Acro summed it up nicely.

The sale for $1 only makes it official so that the broker has the legal right to sell the domain if the other conditions of the contract are met, eg., the reserve.

The contract is not complicated. It says that if a sale is not concluded within the time period, eg., 1 year, the domain is to be returned to the original owner also for $1.

 

[A D]

FWIW,

I would never agree to this even with Moniker.

-=DCG=-

 

[Biggie]

FWIW,

I would never agree to this even with Moniker.

-=DCG=-

agree


and it's better to "out the member" to someone if you're seriously considering this

because it could be a compromised account

but it smells like a set-up and you'd give too much control to the broker


imo...

 

[james2002]

FWIW,

I would never agree to this even with Moniker.

-=DCG=-

agree


and it's better to "out the member" to someone if you're seriously considering this

because it could be a compromised account

but it smells like a set-up and you'd give too much control to the broker


imo...

Yes, the broker said he got lots of projects and wouldn't broker the domain if the condition is met.

I decided to back out of this. If he asked for exclusive brokerage contract for 1 year, I might agree for that. To transfer the ownership is too risky and may cost lots of money to go through legal case if the broker decides not to transfer the domain back.

 

[cerno]

if the "broker" wants a contract to make sure he gets paid upon a transfer, make a contract to that effect with him, he gets paid if you transfer ownership with X months regardless of whether he handles the deal or not, that way he feels protected.

you could also agree to list him as one of the contacts on your whois so he has credibility with buyers to negotiate

he doesn't need to own the domain to sell the domain