I am selling a Domain name via Escrow.com and GoDaddy.com - Any Risks?
 

I am selling a Domain name via Escrow.com and GoDaddy.com - Any Risks?


Are there any risks that I need to look out for so that I do not get scammed?



Thanks to everyone that answers.

nope., no risks in dealing via escrow.

make sure the escrow.com is real or there could be plenty lookalikes and fake escrow services. ;)

No risks with escrow.com, I used it many times on very high transactions. Great service and low fees.

Thanks for the encouraging responses

Good luck with the transaction. Its the safest way to sell a high ticket domain.

Actually it would seem Escrow.com has a risk.

Risk to seller:

If the buyers intent is to defraud you the buyer could change the whois info immediately after you transfer it to the buyer and before Escrow.com has verified it has been transfered to something other than what was agreed apon so that they could then claim to Escrow that they never got it and they want their money back. Yes the risk is small, especially if you know who you are selling it to, but nevertheless the risk exists.

Risk to buyer:

If the sellers intent is to defraud you they could transfer it to the same registrar as the buyer but to their own account, then change the whois info to match what was agreed apon, get Escrow.com to verify, before you have had a chance to realize what has happened and then they change it back to something else.

This is why it is best to use an escrow company that either is also a registrar themselves such as Moniker so the control of the domain and the money is always with the escrow company or at least an escrow company that permits you to push it into an registrar account that the escrow company controls. Pushing into an account the escrow company controls may be an option at Escrow.com if all parties agree to it but last I checked the default was verification of a standard transfer.

Why not just have the buyer buy it through Godaddy auctions, this way there is no risk to either party since Godaddy controls everything. Then the buyer can transfer it out wherever they want later.

Sold many domains via Escrow.com Nothing to worry about!

you can request escrow to contact both parties to make sure they are both happy before finalizing the trans.

If you are still having doubts, use sedo at least they can hold the domain in the transfer process. I have sold some domains using them although the fee is kinda high it worked well.

your the seller so you should be okay, but if I was the buyer I would request we use Moniker.com Escrow.

informative answers I read here. thanks to OP, question was and is justified these days with so many scams surrounding us.

The simplicity of bypassing a so called security check has been always a challenge of the creative earner. I have seen last week how many Dutch Foundations where cheated through Paypal not so long ago

1 The website or organization receives a letter from a person who wants to donate money to them. But they first want to test it with 2 small transactions cause they are not sure if the organization or website is valid.
2 the webmaster of the site thinks that is OK and received indeed 2 small transactions on his bank
3 the person contacts the website again and asks if the 2 transactions arrived OK, the webmaster of the site says yes, and tells the 2 amounts he received. ( without him knowing he forwarded very sensitive information )
4 the person who was planning to donate now has access over the person his bank account by simply cheating the paypal system.

the donator in this situation made a another paypal account with the found info of the organization behind the website he cheated. Requested a bank verification, used the organization her numbers, gets the 2 small digit amounts from the website by described above little cheat. And then owns a paypal account with a verified bank account and can do transactions and clean out of the organization her account.

A lot of organizations where robbed, but Paypal decided to give the money back to the victims. Yet they state again on television, never give information to anyone, but there will be always people who do not read this forum.

A so on first eye looking secure system, can still be cheated with if you are creative. Bad world we live in

Ok, so in the scenario I outlined, when Escrow contacts the seller they will of course be happy as they transfered the domain as instructed and are ready for their money while the buyer will pretend to be unhappy and want their money back claiming fraudulently they never got the domain. Yes the money is still with Escrow.com but the seller would have lost control of the domain and now have to convince Escrow.com that they actually transfered it while at the same time the theif will be trying to convince Escrow.com they never got it and to return their money. You may ultimately win, but why expose yourself to such a risk and hassle when it can be easily avoided.

Sedo will only "hold the domain" in the transfer process if the seller's registrar is the same as where the buyer wants the domain transfered to AND the buyer agrees to a push at that registrar instead of a transfer AND Sedo has an account at the same registrar (Moniker, eNom, Dynadot or Dotster) and agrees to have it pushed into their account.

The problem is since the sales agreements at Sedo cannot be edited before completion of the sale to specify the sale is contingent on this type of transfer process, it is entirely up to the buyer as to whether they will agree to all this. Guess what a buyer with fraudulent intentions will choose. Or course it can work against the buyer as well as previously explained.

Thanks for such great responses and posts that are business related

The other risk to the buyer is that Godaddy gives the original owner of the domain to dispute any account changes for I believe 10 days. So within this period even after the seller and buyer did their Escrow.com transaction. The seller can still dispute and get the domain back to their account.

I like Moniker Escrow since they are in the domain business, if this was a big $ deal I would make sure the domain was transferred to Moniker.com first. The whole transaction would be done through Moniker. Currently your using 2 companions Godaddy and Escrow so issues can arise. I did a $2,400 domain once with Godaddy and Escrow.com once, but we also signed an agreement with the terms between both of our companies. My other big deals were done with reputable domainers and brokers...so no problems.

I've used escrow also, never had a prob. I would also recommend Moniker and Afternic.