Plain-English domain escrow guide: what escrow is, when to use it, step-by-step process, fees, KYC, timelines, risks, and a copy-ready checklist.
What Is Escrow
Escrow is a neutral third-party service that holds a buyer’s payment until the seller delivers the domain name. Once both sides have fulfilled their obligations, escrow releases the funds to the seller.
This setup protects buyers from non-delivery and sellers from chargebacks — creating trust in cross-border or high-value domain sales.
When to Use Escrow
Escrow isn’t mandatory, but it’s smart to use in these cases:
- Anything beyond micro-sales (three figures and above).
- Cross-border transactions involving different banks or currencies.
- Deals with new or unknown parties where trust isn’t established.
- Marketplace hand-offs when taking a negotiation private after initial contact.
If you’ve never met or dealt with the counterparty, escrow isn’t optional — it’s essential.
The Standard Escrow Flow (Step-by-Step)
- Agree on deal terms — final price, domain, registrar, who pays fees, and KYC requirements.
- Open escrow — both parties confirm or create accounts.
- Buyer funds escrow — via card, ACH, or wire (depending on region).
- Seller transfers domain — by push within the same registrar or inter-registrar transfer.
- Buyer verifies — confirms ownership via WHOIS or registrar control.
- Escrow releases payment — after buyer marks received or inspection period ends.
- Deal closes — receipts are generated for both sides.
Domain Transfer Types (What Actually Moves)
- Registrar Push (fastest):
The seller “pushes” the domain to the buyer’s account within the same registrar. Usually completes in minutes or hours. - Inter-Registrar Transfer (slower):
The seller unlocks the domain and shares the Auth/EPP code. Buyer initiates transfer at their registrar. Completion time: 3–7 days depending on TLD and registrar. - Holding Account (escrow-managed):
The escrow service parks the domain in a neutral account until payment clears, then moves it to the buyer.
⚙️ If speed matters, use a registrar push. It’s faster, cheaper, and avoids inter-registrar lag.
Typical Timeline
| Step | Duration |
|---|---|
| Funding | Instant (card) to 1–3 business days (wire/ACH) |
| Registrar Push | Minutes to 48 hours |
| Inter-Registrar | 3–7 days (longer for some ccTLDs) |
| Fund Release | Immediately after confirmation or inspection expiry |
Fees: What to Expect
| Type | Typical Range | Notes |
|---|---|---|
| Escrow Service Fee | Flat or % of price (tiered) | Some charge minimums |
| Payment Processing | Card vs. wire differences | Card usually higher |
| Currency Conversion | 1–3% FX spread | For cross-currency deals |
| Split Policy | Buyer / Seller / 50–50 | Decide upfront |
Always confirm total landed cost before starting — platform % + payment % + FX can easily add 5–10% to the deal.
Copy-Ready Escrow Instruction Template
Use this block as-is when you open an escrow order:
| Domain | example.com |
|---|---|
| Price | $____ |
| Registrar (Current) | Registrar A |
| Target Registrar | Registrar B (or same-registrar push) |
| Fees | Buyer / Seller / 50–50 |
| Transfer Method | Push (preferred) or Inter-registrar (Auth/EPP code required) |
| DNS Control During Inspection | Buyer / Seller |
| Inspection Window | __ days |
| KYC | Govt ID + Address Proof (if required) |
| Special Terms |
No spam or illegal use during the hold period. Both parties must cooperate on unlock/Auth code within __ hours. Any registrar restrictions must be disclosed before escrow/transfer. |
Buyer Checklist
- Confirm domain spelling and registrar before payment.
- Fund escrow using a secure method (watch for FX or card fees).
- Receive and confirm ownership (check WHOIS or registrar account).
- Test DNS setup before confirming receipt.
- Mark “received” only after full control is verified.
Seller Checklist
- Confirm buyer funded escrow before initiating transfer.
- Unlock domain and share Auth/EPP if needed.
- Do not change nameservers mid-transfer.
- Respond quickly during inspection period.
- Save final receipts for tax and recordkeeping.
Risks and How Escrow Reduces Them
| Risk | Without Escrow | With Escrow |
|---|---|---|
| Buyer non-delivery | Funds lost | Escrow holds until transfer confirmed |
| Seller chargeback | Payment reversed | Escrow verifies funding |
| Domain theft | Unchecked | Escrow requires verified ID/KYC |
| Registrar issues | Unclear responsibility | Escrow tracks both sides’ compliance |
Common Mistakes
- Only verbal or email terms:
→ Fix: Add final deal terms directly inside the escrow order. - Wrong transfer path:
→ Fix: Choose “same registrar push” for faster turnaround. - No inspection period:
→ Fix: Add 1–3 days (push) or 5–7 days (inter-registrar). - Ignoring renewals:
→ Fix: Verify renewal or premium pricing before starting. - DNS confusion:
→ Fix: State clearly who controls nameservers during escrow.
Quick FAQs
Q1) Is escrow mandatory?
Not legally, but it’s essential for safety in most deals — especially cross-border or high-value ones.
Q2) Can I pay via credit card?
Yes, though some escrows limit card size and prefer wires or ACH for large transactions.
Q3) Who pays the fee?
You decide — buyer, seller, or split 50/50. Clarify upfront.
Q4) When does the seller get paid?
After the buyer confirms receipt or the inspection period ends, funds release within hours to a few days.
Q5) Is KYC required?
Yes. Most regulated escrow services require identity and address verification.
