escrow - 3rd party domain holding

[ianccc]

I have dicussed a Rent_twn arrangement on a domain that I would like to eventually own. the present owner and I have hammered out an agreement on price - terms - final buyout

However there is no legal way to secure the domain like in a Real-Estate transaction where I can register "title" on the asset

Is there a company for a fee that would accept the domain (owner transfer control) for the terms of the agreement to this company - I fulfill my payment arrangements with the owner and at the end of the term (2yrs) on direction from both parties the neutral company will transfer the domain to me

Kind of a Joint bank account that needs two signatures to withdrawl $$

I want the domain - I will have a contract with the owner, but if he gets a large $$ offer down the line - what stops him from selling and then I have to retain a laywer to enforce my contract

any info appreciated

~ian

 

[jberryhill]

The two parties can appoint a third party to hold the domain name pursuant to whatever terms on which the parties agree.

I typically do this in connection with long-term structured transactions where one party is making installment payments, or must satisfy other conditions requiring time, prior to transfer of the domain name.

What I usually require are that the parties agree on clear terms for transfer of the domain name, and that if they disagree on performance then I will turn the domain name over to whatever dispute resolution process they want to use for any unforeseen disputed conditions.

For example, domain is being sold for X, with payments of X/12 to be made for one year.

In that situation I will provide the parties with a contract incorporating their agreed terms, but will not negotiate for either side. Usually, I will receive the first payment or downpayment in escrow from the buyer, have the seller transfer the domain name into one of my registrar accounts, pay the buyer the escrow payment, and then require that the buyer pay the seller by a means permitting verification such as wire transfer.

Then, either one of two things happens. When the final payment is made, the parties notify me and I release the domain name to the buyer. If, during the course of the agreement the buyer defaults, then I inquire with the buyer as to whether there is proof of making the disputed payment. If not, then I release the domain name to the seller.

Other terms to consider are:

1. Use of DNS during the acquisition term.

2. Procedure for mis-use of the domain or third party claims.

3. Whether any of the installment payments or downpayment are refundable if the buyer defaults.

4. Who pays my bill.

I believe that Moniker provides a similar service, as do other attorneys.

 

[fab]

4. Who pays my bill.

I would think in an agreement where you are basically representing both parties, similar to arbitration, both parties should pay you equally, in order to maintain lack of favoritism.

 

[jberryhill]

I would think in an agreement where you are basically representing both parties, similar to arbitration, both parties should pay you equally, in order to maintain lack of favoritism.

In those situations, I am not working for either side. In the context of a sale of value X where party A is going to be making a payment to party B, and they are each going to pay "half", then normally A pays X+(half) and the payment released to B is X-(half). With a staff of three here, if I have to send two bills, then of course it is marginally more costly.

There are several situations in which the client is not the person paying the attorney. The most common situation is in the context of insurance, in which your insurance company has agreed to pay for your defense, and there is (in the absence of clear prior disclosure) an apparent conflict between the insurance companies' interest to settle and your interest in not being found liable.

Provided the terms and conditions of payment are clearly known to both parties, the parties may agree on whether one or the other of them is responsible for fees associated with reducing the agreement to writing and carrying out escrow.

To be clear, though, item 4 should be "How I'm getting paid". I did recently have a situation in which, during the course of negotiating terms, one of the parties changed their mind on that item. Needless to say, I had to stop working on the other terms until they agreed on that one.

 

[ianccc]

Thanks John for your comments/suggestions

One of the other situations is the domain is a .CA domain and the third party would have to have a Canadian Presence and be CIRA compliant

 

[GeorgeK]

One of the other situations is the domain is a .CA domain and the third party would have to have a Canadian Presence and be CIRA compliant

You might want to try Zak Muscovitch:

www.muscovitch.com

He's a Canadian lawyer, and no stranger to domain name issues.

 

[uclaboyz]

Hey John,

I'm also in a similar situation (as a buyer) for a lease-to-own deal.

I sent you an email yesterday to see about your service and availability.

Await for your reply.

Thank you,
Steve

Ian and all,

Have you found a suitable attorney for a long-term deal?

Where else can I find attorneys who are no stranger to domain deals?

I'm in California so someone local would be great!

Thanks,
Steve