Domain Escrow
Domain escrow is a settlement arrangement where a neutral third party holds the buyer's payment until the domain has actually transferred, then releases the funds to the seller. It solves the core trust problem of aftermarket deals between strangers: neither side has to hand over their asset first.
How an escrowed sale flows
- •Buyer and seller agree on price and open a transaction with an escrow provider or sell through a marketplace with built-in settlement.
- •Buyer funds escrow; the provider verifies the payment.
- •Seller transfers the domain — via registrar push or an authorization (EPP) code.
- •Buyer confirms control of the domain; escrow releases funds to the seller.
When escrow is worth it
For marketplace sales, settlement is usually built in. Dedicated escrow matters most in direct deals — outbound sales, broker negotiations, forum trades — where there is no platform in the middle. Escrow providers charge a fee, typically a small percentage of the transaction that varies by service and deal size, and licensed escrow services operate under financial regulations that a random intermediary does not.
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Frequently Asked Questions
Who pays the escrow fee?
It is negotiable — buyer, seller, or split. Convention varies by deal; in many direct sales the party who insisted on escrow offers to cover it to keep the deal smooth.
Do I need escrow for a cheap domain sale?
For small deals, marketplace checkout usually fills the role at no extra step. Direct deals of any meaningful size are where skipping a neutral settlement layer is genuinely risky for both sides.