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There are no reasons for them to request this.
If they couldn't use FTP and use a freshly created mysql DB I would tell them to fuck off. They're either weak sauce and can't use tech well or they're trying to do something shady.
Newly uploaded sites or content on a server should always be verified, tested and isolated before public use.
Same rules apply to domain names. Nobody should request a transfer or rights to admin them.
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