A domain escrow service is a third-party service that creates a secure and transparent sale and transfer of a domain between buyers and sellers. Used as an impartial party in a domain transaction to protect interests of both the buyer and seller, a domain escrow service holds the domain and acquisition funds in a secure manner until the sale and transfer is complete.
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After the buyer and seller agree on the terms of the domain name sale—including purchase price, payment methods and any additional considerations—they will engage with a domain escrow service to complete the deal.
The details of the domain sale will be provided to the escrow service that the buyer and seller have agreed to use. After providing these details to the domain escrow service, essentially preparing escrow, the transaction will go through the following five steps:
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Most domain escrow services charge a percentage of the domain sale amount. Many fees structures look like this:
Again, fees and fee structures vary depending upon the service provider, so it’s a good idea to shop around to find the best, most trusted provider at the best rate.
You can use a domain escrow service for any domain sale or acquisition, but you’ll find some scenarios below where a domain escrow service may be highly advantageous: