Domain escrow services are a fairly new development when it comes to buying and selling domains. They afford protection to both buyer and seller and prevent misunderstandings as well as fraudulent practices. You may intend to use your domain to promote a cause or hobby you are passionate about or to generate or supplement an income. Either way, it is important to protect your domain just as you would any physical property you are considering buying.
You should use these services each and every time you purchase a domain. Your domain is where you live and work virtually, like your home in cyberspace. When you buy a domain you need to protect it as you would a piece of real property you plan to move into. How many times have you heard of someone buying a piece of property only to learn that there are significant back taxes owed or liens on the property? A domain can have the same problems, unfortunately.
Domain escrow services are third parties that handle the financial aspects of the purchase and sometimes other services as well. The buyer gives the funds to the service, which puts it in a special account to hold until they receive the authorization code for the domain. Once the buyer is given the code and activates the domain with no problems, the seller receives the funds. Much like an escrow service for a real-world property, both buyer and seller are protected against fraud.
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