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I've done Private Label and White Label deals in the past were there had to be a signed agreement that there be X Months notice if the domain was to be used for something else.
To give/get the highest possible payout the risk of having a site pointed else where over night is an issue. Not sure why they are asking you to hand the domain over rather than just sign an agreement. Personally I'd want a signed agreement with regards to how long they will be holding the domain should they want that level of control of the domain etc.
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