When you want to purchase a domain name for your business, you might have to pay a hefty sum to ensure you receive all the related rights. However, what guarantee do you have that the domain will be transferred to you once you pay, or what guarantee will the seller have of receiving the money while they transfer their domain name? This is where Domain Name Escrow Services come in.
An escrow service invites a third party to secure everyone’s part of the deal. But how exactly does domain escrow work? Let’s find out!
Domain Escrow Transactions
Escrow services are used in multiple businesses and for many purposes, not just domain transactions. For example, in freelancing work, an employer will use an escrow service to deposit the money they have to pay the freelancer. Once the freelancer completes their work, they will request payment, which will be released if the employer is satisfied. If the employer refuses to pay, the freelancer can request the escrow service to help resolve the dispute.
When it comes to domain escrow transactions, it’s even simpler. Both the seller and the buyer have to set up an escrow transaction, and the buyer will make the first move. They will deposit the amount of money agreed upon through credit card, wire transfers, or other methods to the escrow company.
The escrow company will confirm the reception of the money and inform the seller to transfer the domain name. Once the seller transfers the domain to the buyer, the escrow service will release the payment to the seller, and everyone will be happy.
The domain escrow company will retain the fees for their services, which is usually a fair sum. The seller and buyer can agree on splitting the fee or which party will pay the total sum. However, the real issue is the terms of the agreement and finding a reliable escrow company.
Having a Lawyer For Escrow Domain Transactions
Though escrow domain transactions are efficient and reliable for acquiring rights, fraudulent escrow companies occasionally pop up, and you could make a mistake. Sometimes, the seller might recommend an escrow service that they know to gain an advantage or defraud you. In other cases, both the seller and the buyer can become victims of fraud.
Another big issue when buying the domain is the agreement terms, which must be read very carefully. There are other legal documents associated with the purchase that you must ensure abides by the law. You should consider hiring a lawyer to be even safer when it comes to your domain escrow transaction, especially since you most likely have to deal with a significant sum of money.
Intellectual property lawyers are most suited to deal with domain purchases, even if they occur through escrow services, because multiple things can go wrong regarding documentation and negotiation. With a lawyer by your side, you get peace of mind and safety in your transactions and can attain domain rights and everything they imply without all the hassle of dealing with transfer terms by yourself.
Purchasing a domain through escrow might seem straightforward at first glance, but there is much more to it when you understand what you are buying. To be on the safe side, do not gamble a large amount of money without proper legal assistance and advice from a qualified attorney.
A lawyer can also hold on to your assets or money in labeled or trust accounts until the contract terms are met and you safely have the necessary documents in your hands.
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