Stolen Name & Escrow

[JohnnJohnn is verified member.]

Let assume the following scenario:

1. Some one wants to buy a name xx .com for $150,000 and the transaction will go through Escrow
2. Both signed in
3. Buyer paid
4. Seller transfer/push the name
5. Escrow send closing statement and send money to seller.

A couple of days later - buyer discovers that the name is stolen and the registrar takes the name back.

Questions:
1. What would Escrow do for the buyer if anything!
2. If nothing Escrow can do then what is the fees for?
3. Will the situation change if the Buyer used Moniker Escrow instead?

Thanks,
John

 

[tekz999]

1. Nothing.
2. Securing the funds.
3. No.

 

[Rockefeller]

1. Nothing.
2. Securing the funds.
3. No.

Exactly, escrow is just used a middleman so the buyer doesn't have to send the funds directly into an unknown seller's account. Wire transfers are traceable and you could go through your bank to attempt to get the money back. If you purchased a house or boat and later found out it was defective you wouldn't go after the escrow company, you would go after the seller.

 

[JohnnJohnn is verified member.]

That is what I thought - Just want to clarify as many people still believe that Escrow is 100% safe.

Thanks guys!

John

 

[Onward]

Escrow.com really sucks for the seller IMO.

I sold a name to a well known company. The company funded the account...I transferred the name...the seller dragged their feet with showing they accepted it on escrow.com. Then e-mailed me and said that they wanted to go in a different direction and tried to cancel the escrow. I told them too bad - we had a deal and Escrow.com gave them their money back...they were going to give the money back right away until I pleaded with them not to - so as I could get my name back.

Bottom line is even if you use escrow...I would use a contract as well as Escrow.com will do nothing for the seller and everything for the buyer.

 

[Rockefeller]

Escrow is 100% safe. They are bonded and insured and do $1,000,000s in transactions a year. The responsibility falls on the buyer to do the proper research when making a purchase of anything, domain name, boat, house, car, etc. It's a lot safer than simply wiring anyone cash and expecting the domain name, or using western union for that matter. If something happens and its escrow's fault, they will cover whatever damages occur. If a buyer and seller enter into a transaction and the domain name is stolen, it's not escrow's fault because they didn't know it was stolen.

Also, in escrow's contract the SELLER reserves the right to cancel the transaction at any time. I would also use a sales agreement when using escrow, even without the sales agreement, Escrow clears the way for an arbitration suit.

When you push the domain name to a buyer, also make sure you don't "push your contact info" like at Enom. I never understood why seller's do this. Make sure the buyer's info will show up in the whois. If the buyer hasn't accepted the domain name once the "inspection period" is over (always set this to 1 day) then simply email escrow and ask them to close out the transaction. They will verify the whois info and close it out.

 

[Theo]

I always openly CC Escrow.com the details of the account when selling a domain. It puts the buyer on the spot

 

[Reece]

I'll start by saying I've never had an escrow transaction go bad nor have I heard of one going bad.

That said, I've always wondered what would happen if upon receiving the domain the buyer immediately changed the whois info (in example, back to the seller's info). This could be made even more problematic by then making the registration "private" or worse still, transferring the domain away while still in the inspection period, making the registration private, and updating the whois to reflect the buyer's info.

From personal experience with someone I trusted and pushing a domain keeping it showing my info through escrow rather than updating to theirs, I don't believe Escrow would make an effort to contact the registrar and verify who owned the domain (even if they did, would this information even be allowed to be given out under USA laws?). I ended up being stuck for 10+ days last year waiting for my money when the seller went on vacation and forgot to mention that he had received the domain.

Agree that it is much safer than wiring the money regardless of whether I'm merely paranoid or not. For the time being I'm cautious about who I deal with for XX,XXX+

Escrow is 100% safe. They are bonded and insured and do $1,000,000s in transactions a year. The responsibility falls on the buyer to do the proper research when making a purchase of anything, domain name, boat, house, car, etc. It's a lot safer than simply wiring anyone cash and expecting the domain name, or using western union for that matter. If something happens and its escrow's fault, they will cover whatever damages occur. If a buyer and seller enter into a transaction and the domain name is stolen, it's not escrow's fault because they didn't know it was stolen.

Also, in escrow's contract the SELLER reserves the right to cancel the transaction at any time. I would also use a sales agreement when using escrow, even without the sales agreement, Escrow clears the way for an arbitration suit.

When you push the domain name to a buyer, also make sure you don't "push your contact info" like at Enom. I never understood why seller's do this. Make sure the buyer's info will show up in the whois. If the buyer hasn't accepted the domain name once the "inspection period" is over (always set this to 1 day) then simply email escrow and ask them to close out the transaction. They will verify the whois info and close it out.

 

[TheLegendaryJP]

Don't touch it Johnn

 

[draggar]

Nothing is 100% secure. Sure, some companies may be a lot safer (Escrow.com etc..) than others (Paypal etc..) but in the end, it's buyer and seller beware.

The responsibility falls on the buyer to do the proper research when making a purchase of anything, domain name, boat, house, car, etc.

I disagree. My wife and I did as much research as we could when we bought our current home but there were issues. A $200 association fee was due that wasn't paid by the previous owner, no one picked it up and we had to sue the previous owner to get the money (everyone was holding us liable). The roof was in horrid condition, the inspectors dropped the ball but we still had to be responsible for it. The "5 year old" air conditioner ended up being over 20 years old and had to be replaced within 6 months and again, who was responsible even though the realtors and inspectors didn't pick up on this? Even professionals can miss things.

In the end the buyer and seller both need to do full research on each other especially if it is a first time dealing with each other before any transaction. There are way too many scammers out there who are willing to take advantage of anyone, even the experienced.