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.
A quick, periodic check can help spot problems early. I would look for obvious red flags like selling counterfeit goods, phishing (may be tough to detect), trademark and brand infringement, sales of illegal substance, or offering scammy looking products or services. When checking on these domain names, it is also worth noting whether the site has gone inactive, which might hint at payment issues ahead.
In addition to visiting the domain name, I might even do some advanced searching to ensure it is being used within the scope of the agreement. For instance, I might do a site: search on Google, and search Google and/or social media websites for any mentions of the domain name.
If something looks out of the ordinary to me, I will generally send an email to an attorney I use to get another viewpoint on it. At that point, my attorney can advise on how to handle on my own or with the help of the platform or escrow agent if necessary.
In order to stay on top of this on a regular basis, I would suggest having a look at the domain name every time a payment notification is sent by the platform or escrow service that is managing the LTO. This monthly email reminds me to update my accounting with the income received, and it is a good time to visit the domain name to see if it is being used and how it is being used.
