Need advice - large purchase

dmyre · Feb 9, 2005

I am in the process of purchasing a high traffic domain name, but it appears the owner started negotiating with other parties, after we agreed to a price, and I paid through Escrow. It seems that the seller is using me as a scapegoat for negotiating purposes.

The current owner published a website this week, stating that he has two "SECURED" offers, but is trying to get more from another interested party. He has not responded to my emails, since I funded Escrow.

Would you just wait it out, or play hardball and set an expiration date for 48 hours? If it was any ordinary name, I would just backout, and lose $200 for escrow fees, but this one has an OVT rating of over 7000, which should bring in 3000 to 5000 uniques per day.

mole · Feb 9, 2005

Sue him.

dmyre · Feb 9, 2005

Is a verbal agreement, along with confirmed escrow, legally binding?

mole · Feb 9, 2005

I'm not a lawyer, but you did give due consideration by paying the Escrow fees. If I were in your shoes, I would consult my lawyer and seek legal action. Your word is your honor.

dmyre · Feb 9, 2005

Thanks Mole... I appreciate your input.

Domagon · Feb 9, 2005

Definitely pursue this one ...

You may even want to get an attorney on this *right now* to assist, such as getting a court injunction to prevent the domain from being transferred to anyone else in the meantime - that action alone will really throw the seller for a loop, and very likely encourage them to complete the transaction.

Ron

Dr. Domaining · Feb 11, 2005

Wow, you should definitely pursue it. If you don't mind me asking what is the domain and how much are you paying for it?

brn2h8 said:
I am in the process of purchasing a high traffic domain name, but it appears the owner started negotiating with other parties, after we agreed to a price, and I paid through Escrow. It seems that the seller is using me as a scapegoat for negotiating purposes.

The current owner published a website this week, stating that he has two "SECURED" offers, but is trying to get more from another interested party. He has not responded to my emails, since I funded Escrow.

Would you just wait it out, or play hardball and set an expiration date for 48 hours? If it was any ordinary name, I would just backout, and lose $200 for escrow fees, but this one has an OVT rating of over 7000, which should bring in 3000 to 5000 uniques per day.

eSology · Feb 11, 2005

MasterOfTheDomain said:
If you don't mind me asking what is the domain and how much are you paying for it?

Even if are not taking legal steps, publicizing the domain and price would be a bad idea for further negotiations.

Jack Gordon · Feb 11, 2005

It takes two to tango. The fact that you put money into an escrow account is not going to be enough to prove your case. What exactly did the seller say or imply that made you think you had a deal? Is it purely verbal, or do you have it in email/pm form as well? Who initiated the escrow process?

I am not a lawyer, but I would certainly have these questions answered before spending money on legal fees.

mole · Feb 11, 2005

MovieDomains said:
I am not a lawyer, but I would certainly have these questions answered before spending money on legal fees.

Unfortunately in the real world, some people selfishly take advantage of a situation to further their ends, which may not have come about if you did not initate that situation.

In business, they say, your word is your honor. And sometimes, people don't care to understand that, surprise though you may be. Legal action is sometimes, unfortunately or fortunately, your only recourse.

DaddyHalbucks · Feb 11, 2005

The question becomes: do you have a contract, or not?

If you used Escrow.com and the seller agreed to the terms, you probably DO have a contract.

I had a similar situation, and my recollection is that my lawyer said yes I could enforce the agreement. The problem in my case was that I had a Korean seller, which required international service.

If both parties are in the US, you may have some good leverage.

Mole's advise to "sue him" may not be so far off.

I AM NOT AN ATTORNEY AND THIS IS NOT LEGAL ADVICE.

dmyre · Feb 11, 2005

I would rather not disclose the name at this time. Additionally, I do have several emails of negotiations, and one stating that he would accept the offer. I initiated Escrow, and the seller recommended a change in the inspection period, so once that was changed, we both agreed to the terms.

A few days after he confirmed escrow, while payment was pending, he registered another domain name, and published a website that he is targetting other offers, two of which are "secured". It has been 8 days since I received a response from him, even though I've sent numerous emails to him. Escrow.com says that I have to wait 10 days before cancelling the transaction, but I'm afraid if I cancel the transaction it may hurt my legal standpoint.

I have never even though about sueing anyone, but I guess it is an option. Both parties are in the US, so should I file a suit in my state, the sellers state, or in California where Escrow.com is? I know most of you don't have the legal background, and am just looking for a starting point.

Also, if I have the legal right to cancel Escrow, wouldn't the buyer have the same right?

mole · Feb 11, 2005

brn2h8 said:
Also, if I have the legal right to cancel Escrow, wouldn't the buyer have the same right?

'

Yes, they do, but they didn't.

Over 70% of my acquisitions are done through direct registrant contact. It is both productive, as well as hairy. But once the registrant confirms a price and a payment method within an agreed duration through email, I consider it binding, once I put in some monetary consideration though. Both for him, and for me.

That's just pure common sense and fair play, and if anything happens in-between that puts a spanner in the works, I will seek legal action if I find the name worth the while, if only for principles and peace of mind. It doesn't matter whether you are in the North Pole.

DaddyHalbucks · Feb 11, 2005

Read the escrow agreement. If you are using Escrow.com it is found here:

https://www.escrow.com/resources/to_use.asp

Both parties have to abide by it.

Normally, you sue in the jurisdiction of the defendant, or where the agreement specifies.

Do NOT cancel the transaction, which could hurt you. Consult a lawyer. I recommend atrtorney Charles Carreon who is licensed in CA and OR. Find him here http://mediaesq.com

THIS IS NOT LEGAL ADVICE AND I AM NOT AN ATTORNEY.

Theo · Feb 11, 2005

That's just horrible. I once dealt with an individual through Escrow who once the agreement went through, payment was made (to me) and the domain was pushed to a new account he contacted me asking "why does the domain show expiration date (11 months from then)", adding with gusto that he thought the registration and sale was "forever" and he denied the acceptance of the item in Escrow. I frantically logged into the registrar account - he hadn't changed the passsword - and pushed it back to my account. I mentioned this to Escrow.com and they too found it comical. Too bad - the domain now points to gay content. :-D