What are the domain sale procedures?

What should be in the contract?

[macavity]

Hi everyone,

I'd like to accept an offer made by a third party for one of my domains but have been asked to prepare a (draft) contract for the transfer. This is the first time I've sold a domain and would appreciate any advice on putting together such a document and the steps I should take to make sure that the sale goes smoothly. Should I be using an escrow service for example (if so, which one?) My feeling from communication with the buyer to date is that a suitably drawn up contract, including payment terms, may suffice but any guidance would be welcome. Many thanks in advance!

Mac

[robho]

Search for "domain sale contract" will find a few (free) examples of what should be in the contract.

As a seller, you want the minimum possible in the contract - all you care about is getting the money (and a happy customer).

The buyer is mostly concerned about whether there are any disputes related to the domain, whether you really own it, and (for large amounts) whether they'll get full control before you get the money.

The choice of whether to use escrow or not is really the buyer's choice - as a seller, you don't need it providing you get paid by some unrefundable method (such as wire transfers, not credit cards).

I've found that for small amounts (under $2000 or so) escrow isn't really needed. Above that, escrow.com is fine.

[macavity]

Many thanks, for that.

As far as the actual transfer is concerned, I can certainly log in to my current registrar's domain management system and change the (WHOIS) contact details to those of the buyer once the sale goes through, but I'm less clear on what needs to happen after that. Presumably the buyer needs to request a domain transfer from their own chosen registrar?

Mac

[thinkaholic]

It depends on the company where you registered the domain name. Many allow the domain name to be changed to a different account within their system. Chnaging the whois data is ok, but that does not put the domain name in their possession. Transferring the domain name out of their system (to a different register) is allowed if the domain name has been registered with the same register for 60 days.

A contract is recommended as evidence the transaction took place and it was approved by both seller and buyer.

[Webwork]

Contracts are seldom worth the trouble, all the more so for domains selling for <$25,000. Why? Imagine how much money would have to be spent enforcing the deal, especially if it's a transcontinental or international deal.

The best deals are the simplest: Use a domain escrow service, such as offered by Escrow.com or Moniker or any other significant industry player (only those 2 come to mind).

If your buyer must have a contrac then it need not exceed 1 page. I've had to suffer several "must have contract" deals and never was called upon to sign a contract longer than 1 page.

Truly the best approach in my experience is an escrow.

[macavity]

Thanks to everyone for your kind help!

Cheers,

Mac