Renting versus Owning

Is this still an issue and how to tell?

[JAB Creations]

When I bought my first domain a friend made it clear to me that some sell and others rent out domains. Renting domains could mean that someone else could buy your domain before it expired if they had more money then you.

I'm no legal expert nor do I care to browse through hundreds of pages of "We're not going to explain this in non-beaurocartic langue" language. Could someone be kind enough to shed the light on this matter?

[peewhy]

It all depends on the rental agreement. Ultimately the owners owns the domain and if he has the caveat that allows him to sell it, then legally he can.

Equally, I would think that he would want to offer the renter 'first refusal'.

Renting is not a good idea especially when domains are so cheap.

[JAB Creations]

Ok but how do I go about finding out how to have a solid understanding of who is selling and who is renting out domains? I like a black and white understanding and obviously this is not a black and white concept that domain sellers/renters display...or really at all.

[Webwork]

Own = Transfer of registrant. You are the registrant, the adminstrative, technical and billing contacts.

Keywords = sell, sold, transfer ownership. ;)

Rent or lease = not sell, not sold, something held back.

I've only ever "leased" one domain. Not one I wanted to sell but one that I decided to "do some good" with. (Very favorable lease terms.)

The vast majority of domains are sold, transferred. I think that you'll find very few domain "renters". If someone, on their website or in the other contact, says anything that is uncertain ask for clarification. What you want is a sale and transfer of registrant. If anything is unclear about the transaction or agreement run it past your lawyer.

The closest alternative I've seen are "lease purchases", where the 'buyer' agrees to pay a certain annual amount - during which time the domain is used by the buyer but "title" (registration) is held by a reliable escrow agent pursuant to a written agreement (often a lawyer or other professional, possibly a registrar willing to undertake the obligation as escrow agent) - and upon the final payment the domain is transferred.

[peewhy]

In reality we all rent domains, if we don't renew them we lose 'em!

[JAB Creations]

Well I have my domain paid up until 2015 (didn't have enough laying around for a hundred year extension) and I'm all over keeping my domain from expirering. I'm just more or less concerned for my clients and want to know and feel solid about this aspect of the web. :-) Great post Webwork! Thanks to you both!

[TopNames]

Renting is a bad idea because you could be held legally responsible for the actions of the renter. I learned this the hard way once. To avoid any future problems, I sold the domains.

[edited by: Webwork at 4:43 pm (utc) on July 16, 2005]
[edit reason] Try to avoid mentioning specific domains [/edit]

[elgumbo]

The main problem I see with renting a domain is that you do all the work , build up a site, build a reputation, build up a brand on something that you have very little control over.

The domain name could be a more valuable prospect to the leaser (and your competitors) when renewal negoiations start again.