Escrow.com question regarding the transfer step of a domain sale

[mikeh]

I will be selling a domain for the first time through Escrow.com. My question is, what is the proper method to transfer the domain so that Escrow.com is happy and satisfied afterward that the buyer received it? Their online instructions are somewhat vague.

In the past when I've transferred domains (not using Escrow.com), the receiving party initiates the transfer from their registrar and I unlock the domain and supply my registrar's authorization code. But I had no ability to choose an account that the domain was being transferred into - that was up to the buyer. So how does this work with an Escrow.com domain sale where, presumably, Escrow.com will verify the transfer occurred by looking at the newly changed WhoIs data? What happens if I sell the domain to someone whose Escrow.com account is [email protected], but their domain registration contact info lists [email protected]? Do I need to instruct the buyer ahead of time to make sure their registrar contact info matches their Escrow.com account info?

I hope this is clear. I just want to keep the process smooth and avoid any potential problems.

For reference, here's the text of Escrow.com's instructions regarding Domain name sales:

2. Domain Name(s)
In the event the personal property being transferred in this Transaction qualifies as a "Domain Name", Escrow.com is instructed to close only when the transfer of the Domain Name has been confirmed by Escrow.com (at its option) or the Buyer has notified Escrow.com that Buyer has received the transfer and allowed the Inspection Period named in the Transaction Detail Screen to expire or the Buyer has accepted the transfer. Seller shall transfer a Domain Name(s) to Buyer based upon information provided in Buyer's profile. Seller agrees to provide the username and password and/or authorization code, if any, necessary to access the Domain Name to Buyer prior to the release of funds.

 

[Andee Hill]

Hi MikeH,

Escrow.com secures the funds in escrow so that the seller can transfer the domain directly to the buyer. The buyer and seller have a few options; the seller can provide the buyer access at the current registrar or allow the domain to be transferred to a registrar of the buyer's choice.

The whois information is used as a tool to confirm the transfer but is not required. Escrow.com requests that the buyer and seller confirm on our site when the seller submits the transfer and when the buyer receives control. In the event one party does not participate on the transaction promptly, Escrow will use whois information, registrar confirmation, and or email/call the buyer to confirm the transfer.

For more information, please feel free to contact Escrow.com directly at [email protected] or 888.511.8600.

Escrow.com

 

[dominator]

how can escrow.com verify the whois data that can change several times during ten minutes?

do you monitor whois in real time?

if not, then moniker escrow, sedo escrow and escrowdns are more secure:

As I understand it, EscrowDNS actually takes the domain into their possession (like Sedo escrow & Moniker escrow)...Whereas, escrow.com doesn't.

The difference could be that its hard to see how a scammer could scam a seller with EscrowDNS...

...but, with escrow.com, that doesn't actually take possession of the name, an unscrupulous buyer could receive the domain from the seller, then immediately change the Registrant info back to that of the seller - and claim to escrow.com that the seller never transferred the domain (using the (now) false WHOIS info as 'evidence'), and demand the refund of his money....thus stealing the domain.

The 'take possession' escrow services are therefore safer, imo.

 

[mikeh]

Thanks for your answer, and I called the 800# earlier today and got the info I needed to move forward with my sale. But I'm still left with a nagging feeling that the Escrow.com process is not 100% safe for domain transfers. Unless I'm missing something, if either party is unscrupulous then they can lie and take advantage of your system.

For example: A fraudulent seller can transfer the domain to a second account that he controls (or an accomplice's account) using falsified whois registration/contact info to make it appear that the transfer went through properly to the buyer, even though it didn't. How would Escrow.com discover this? The whois information would have changed and appear to be the buyer's. The registrar confirmation that the seller received would also appear correct. But the buyer would never get the domain and could lose the money Escrow.com is holding.

Similarly, couldn't the buyer transfer the domain into account on the same registrar, and falsify all the contact info to make it appear as if it was never transferred? What's to stop the buyer from claiming he never received the domain transfer? Couldn't the seller lose the domain and the money Escrow.com is holding?

Like I wrote, I'm left with a nagging feeling that the process is not 100% safe if buyer or seller is intent on committing fraud. Am I missing something?

 

[zarul shahrin]

Sorry, but I am not seeing the problem there, if one person decided not to be honest in the deal then the deal will fail, as simple as that. If you have transferred the domain to an account under the same registrar and realized that the buyer is not being honest about that, you can always contact the registrar and explain about what happened. I believe they are more than willing to help you. You can then inform escrow regarding what happened and cancel the deal. There is no need to be over paranoid :-D

 

[dominator]

There is no need to be over paranoid

if you trust the buyer, you do not need any escrow service

if you do not, i would prefer a real escrow service, where the domain is transferred to the escrow account (e.g. moniker, sedo, escrownds)

 

[Doc]

S you can always contact the registrar and explain about what happened. I believe they are more than willing to help you.

nah, usually they don't bother ( unless you are able to contact them on here )

 

[adonivideo]

I've used escrow.com on several deals over the years, every system has holes, but the escrow.com system seems a pretty good way for domains say over 10K or so

 

[dominator]

every system has holes

this hole is the difference between pseudo-escrow and escrow

i hope they fix it

 

[Theo]

I've done almost 100 transactions via Escrow.com - both as a seller and as a buyer - without any issues.

As a buyer, you need to confirm receipt of the goods (e.g. the domain). To do so, you have to have access to the domain's controlling account. So you need to access that account given to you by the seller - if it's a push - and change the password, before acknowledging receipt of it.

As the seller, always CC Escrow.com (I usually BCC) the account info, including usernames and passwords. This way they can confirm the domain was delievered to the buyer, if needed.

They also employ strict CC verification of the buyer's paying method, including the mandatory faxing of the CC back and front, signature and identification credentials such as police id, driver's license or passport.

 

[dominator]

I've done almost 100 transactions via Escrow.com - both as a seller and as a buyer - without any issues.

because your buyers were honest people or because escrow.com is so secure?

i would say it is because you are experienced and can smell scammers/suspicious transactions in most cases, or know your buyers...

i have done many paypal (non-escrow) transactions with other dnf or np member without any issues

does it mean that no scams can occur?

As the seller, always CC Escrow.com (I usually BCC) the account info, including usernames and passwords. This way they can confirm the domain was delievered to the buyer, if needed.

how many times somebody tried to scam you and escrow.com prevented it?

 

[Theo]

So you're saying that Escrow.com needs to be put to a certain test by world-class scammers in order for you to be convinced that it's effective in its role?

First off, an escrow is a qualified mediator licensed by the state or federal government for that service. They take the money in exchange for the goods and they charge a fee. A lot of people might feel nervous but I never had problems with Escrow.com - on either side of a transaction.

On the other hand, try feeling the same amount of security with Paypal. You can't. Your money is at the mercy of the merchant. Reversals can occur up to 60 days later. Your funds can get frozen indefinitely. Your bank account can be accessed. The infamous "intangible goods" term marks domains as a high risk "item".

This is not the case with an escrow service.

 

[dominator]

First off, an escrow is a qualified mediator licensed by the state or federal government for that service. They take the money in exchange for the goods and they charge a fee.

my opinion is simply that moniker & al. are more secure, because the domain is in the escrow account

On the other hand, try feeling the same amount of security with Paypal. You can't. Your money is at the mercy of the merchant. Reversals can occur up to 60 days later. Your funds can get frozen indefinitely. Your bank account can be accessed. The infamous "intangible goods" term marks domains as a high risk "item".

i completely agree with the pp part
(i had 3 frozen accounts without any reason)

i do NOT suggest to use pp instead of escrow.com
i suggest to use moniker, sedo or escrowdns

 

[Theo]

You can definitely use Moniker, if you prefer. I used them once, no problems. The drawback: the domain must be at Moniker.com, which I don't use.

 

[NameFetish]

I have to agree, if Escrow.com could follow the lead of say sedo.com and have the domain pushed in to thier house account at the existing registrar then the seller would be covered.

 

[dominator]

You can definitely use Moniker, if you prefer. I used them once, no problems. The drawback: the domain must be at Moniker.com, which I don't use.

i have used escrow.com several times without problems

but with escrow accounts for 10 - 15 major registrars they would be better

 

[wolfis.com]

i have done several transactions with escrow.com ( one is still in process at escrow.com )and many with sedo ( the last one with sedo finished just a few days ago )

i prefer escrow.com any day of the week over sedo.com
( sedo really stinks with domain sales - it took 4 businessdays after the transaction was posted as completed on sedo's website to issue the payment - at escrow.com it NEVER takes more than 2 business days for them to make the payment.)

escrow's support is there when you need them ( on the phone and email )
at sedo your transaction goto person in 4 out of 5 cases should be fired !!


i was contacted a while back to start using sedo again and they even offered some useless featured listing ( i did not take them up on their offer ) - so i thought i thry their escrow service again and it was a disaster !

 

[mikeh]

I've done almost 100 transactions via Escrow.com - both as a seller and as a buyer - without any issues.

As a buyer, you need to confirm receipt of the goods (e.g. the domain). To do so, you have to have access to the domain's controlling account. So you need to access that account given to you by the seller - if it's a push - and change the password, before acknowledging receipt of it.

Is this what you do as seller? Give access to your domain registrar account to the buyer? That wouldn't work for me, as my registrar account has access to all of my domains - not just the one for sale.

You also mention a domain "push". What exactly do you mean with that term? Is it just another way of saying transfer from one registrar to another?

 

[H2FC]

I've never had a problem using escrow.com....they are fast, dependable, and ez imho.

A push is when a domain owner transfers ownership of a name to another member in the same registrar. Its usually very easy and can be done very quickly. If you are a seller its the best way to make a transaction after the payment funds have been secured....either by escrow or some other way of securing the funds.

Most all registrars allow free memberships and after the buyer has received the name in their account they can then transfer it out to whereever they choose.

One other thing about using escrow.com for domain transactions....I always click the one day period the buyer needs for verifying receipt of the domain...thats all the time thats really needed and you can get your money quicker if you're the seller.

 

[Raider]

I like to push the domain internally at the Registrar where the domain is at... Reason is; when you have the buyer initiate the transfer to a registrar of his choosing, it drags the escrow process out another week, and if he doesn't know what he's doing, it could take even longer, And what if the contact info he enters doesn't match up? that's another delay.

I use Enom as my primary Registrar, I create a "retail" account for the buyer and push the domain into that account, Takes about 5 minutes. Once this is done, I complete the final step at Escrow and my check is here within 5 days, sometimes 3 days.