Advice

I saw some good advice shared on X that should be considered by domain investors who have ongoing Lease to Own deals:

🚨 If you've sold a domain on an LTO deal, check how it's currently being used and make sure it's not being used for anything sketchy. pic.twitter.com/gkdNWPBMEH

— ARIYAS (@domainretail) August 15, 2025

When a domain name is sold on a lease-to-own (LTO) payment plan, the buyer typically gains use of the name before paying in full. While most buyers use the domain name as intended, it’s a good idea for domain investors to periodically check how their leased domain names are being used to ensure they aren’t being used in a way that would violate any laws or the LTO agreement.

The primary reason for checking on these leaed domain names is risk management. If the buyer uses the domain name for something illegal or illicit and against the terms of the agreement, it could draw unwanted legal attention or harm the reputation of the domain name. Not only could it cause issues for the domain registrant in the shorter term, but it could hurt the value of the domain name in the longer term.

When someone decides to acquire a domain name, the process usually falls into one of three main paths: they have a brand already in mind and want to secure the matching or a similar domain name, they start their search from scratch using a platform to generate brand and domain name ideas, or someone reaches out to sell them a domain name.

In the first scenario, a buyer has already established (or is in the process of establishing) a brand name. They might be launching a company, introducing a new product, or rebranding an existing business. The brand name is already chosen, and they want to buy the matching .com domain name.

There are numerous automated tools that attempt to place a value on domain names. They use various sets of data, artificial intelligence, and machine learning to estimate what a domain name could be worth. Some sales platforms and marketplaces show appraisals on a purchasing or bidding page, which implies authority. Domain name appraisals are often treated as validation tools by domain registrants and dismissed as irrelevant by buyers.

Some of the most popular and widely used/cited domain name appraisal tools include the following:

Over the last several weeks, I have been adding more domain names to my account at Atom.com. I have just shy of 250 domain names listed for sale along with some that are pending review. With another lease to own sale started last night, I currently have 4 LTO deals in progress at Atom. Two are .com, one is .AI, and one is .xyz.

Over the years, I’ve witnessed and heard about many disagreements between domain brokers and clients. There have been accusations of double dealing, poor representation, frontrunning, and everything in between. Many of these issues could have been resolved or clarified with a signed brokerage agreement.

Domain name sellers and buyers who are going to work with a broker should execute a domain brokerage agreement that outlines expectations and requirements. I imagine every professional and legitimate domain broker will have a standard agreement that can be used and modified based on the situation. The buyer or seller should have an attorney review the agreement to ensure their interests are covered.