Domain Name Escrow Process

When I am dealing with someone who is unfamiliar with the way escrow works for domain names, they often ask me about the process. In response, I let them know how the entire escrow process works from the beginning until the end. I believe the steps are pretty similar between Escrow.com and Payoneer Escrow, but there would be some differences for a lease to own, payment plan deal, or a deal that is out of the ordinary.

I thought I would share this with you along with some parenthetical notes. This can be shared as a guide a buyer or seller about the escrow process. I invite you to share some comments to make this more clear if you think it is confusing.

When I am the seller:

Step 1: Sign a purchase agreement which I will provide for your review.

Step 2: I will open escrow at [Escrow Service] using [Email address]. You will receive an email from the escrow service and will need to set up an account and agree to the deal once it is set up.

Step 3: You will send your payment to [Escrow Service], and they will notify us when the funds have been received and processed.

Step 4: I will unlock the domain name and send you the authorization code. Alternatively, I can push the domain name to an account of yours at [Domain Registrar], the domain registrar where [Domain Name] is registered.

Step 5: You will start the domain transfer at your registrar, and I will approve the transfer at my registrar. If I do an account change, you will accept the change of account.

Step 6: You will log in to your account at [Escrow Service] to confirm receipt of the domain name, and [Escrow Service] will release the funds to me.

When I am the buyer:

Step 1: Sign a purchase agreement which I will provide for your review.

Step 2: I will open escrow at [Escrow Service] using [Email address]. You will receive an email from the escrow service and will need to set up an account and agree to the deal once it is set up. At this point, you will select how you wish to be paid.

Step 3: I will send my payment to [Escrow Service], and they will notify us when the funds have been received and processed. They will instruct you to transfer the domain name.

Step 4: You will unlock the domain name and send me the authorization code. Here is a guide to that process: [Link to Registrar FAQ]. {If I am not transferring the domain name:} You will do an account change and push the domain name to my account at [Domain Registrar]. My account information is [Account Information]. Here is a guide to the account change process: [Link to Registrar FAQ]

Step 5: I will start the domain transfer at my registrar, and you will approve the transfer at your registrar. {If I am not transferring the domain name:} I will accept the change of account.

Step 6: I will log in to my account at [Escrow Service] to confirm receipt of the domain name, and [Escrow Service] will release the funds to you.

Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn

3 COMMENTS

  1. Just a bit curious.

    I’d say 30% of my sales come via Sedo, & maybe 20% come via AfternicGodaddy. The remaining 50% of my sales come via brokers.

    Elliot, do you receive decent offers from persons or entities via email or phone? I used to, but now it’s ONLY brokers or Sedo/GD. No domain investors. A few from China, but not many.

    • I think the majority are probably outbound. I do receive quite a few inquiries via the inquiry form I set up via Embrace.com.

      I don’t really answer my phone from numbers that aren’t in my contacts. When someone does call, I will either call them back or email them if I have their email address.

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