How buying a domain through escrow actually works
What happens between accepting an offer and owning the domain: escrow mechanics, transfer steps, realistic timings, and where deals go wrong.
The mechanics of a domain purchase are simple, but they are unfamiliar, and unfamiliar processes are where nervous buyers stall. Here is the whole thing, end to end, with the failure points named.
The core problem escrow solves
In a private sale, someone has to go first. If you pay first, you are trusting a stranger to hand over an asset. If they transfer first, they are trusting you to pay for something you already have.
Escrow removes the choice. A neutral third party holds the money, the domain moves, and only then does the money move. Neither side has to trust the other — they both only have to trust the escrow provider, which is a much smaller and better-regulated thing to trust.
The sequence
1. Terms are agreed in writing. Price, currency, who pays the escrow fee (conventionally split, sometimes seller-paid), and the target registrar. Nothing is payable at this stage.
2. An escrow transaction is opened. One party opens it and the other accepts the terms. Both parties verify identity — expect to provide ID for larger transactions, which is a regulatory requirement rather than a formality.
3. The buyer funds escrow. Bank transfer for larger sums, card for smaller ones. Wire transfers can take one to three days to clear, and this is the single most common source of delay in the whole process.
4. The seller initiates the transfer. Two routes:
- Registrar push — if you hold an account at the same registrar, the domain is pushed directly into it. Fast, often within hours, and it avoids ICANN transfer timing entirely.
- Registrar-to-registrar transfer — the seller unlocks the domain and provides an authorisation code (EPP/auth code). You initiate the transfer at your registrar and approve it. This runs on ICANN timing.
5. The buyer confirms receipt. You verify the domain is in your account and that you are the listed registrant.
6. Escrow releases. Funds go to the seller. There is usually a short inspection period before automatic release; confirming manually shortens it.
Where deals actually go wrong
The 60-day lock. ICANN prohibits transferring a domain within 60 days of registration or of a previous transfer. This catches people out constantly. If a name was recently acquired, a registrar push is the only route until the lock lifts. Ask about it before agreeing timings.
Stale WHOIS contact. Transfer approvals go to the registrant email on file. If that address is dead, the approval never arrives and nobody knows why. Both sides should confirm their contact details are current before starting.
Registrar transfer locks. Separate from the 60-day rule, most registrars apply a standing transfer lock. It is a checkbox, but a forgotten one stops everything.
Currency and fees. Agree the currency up front. A buyer paying in a different currency can find the escrow provider’s conversion leaves the seller short of the agreed figure, and someone has to cover the gap.
Weekends and public holidays. “Three to five business days” is doing real work in that sentence. A transfer started on a Thursday before a long weekend in the Gulf will not finish on Monday.
What you actually receive
On completion you are the registrant of record. You control the nameservers, the DNS, the renewal, and any future transfer. The seller retains nothing, and there is no ongoing relationship — this is a sale, not a licence.
You are responsible for renewals from that point. Set the domain to auto-renew the same day you receive it. Losing a premium name to an expired card is a genuinely common and entirely avoidable disaster.
What it costs
Escrow fees are typically 1–4% depending on transaction size and payment method, with larger transactions attracting a lower percentage. Registrar transfer fees are usually a single year of registration, often around $10–15 for a .com, and that year is added to your existing expiry rather than replacing it.
How we handle it
Every Hala Premium sale runs through an independent escrow provider. We never take payment directly, we initiate the transfer as soon as escrow confirms funding, and we stay on the transaction until you confirm the domain is in your account. If it cannot be delivered, escrow refunds you in full — see our refunds policy for the detail.
If you have a specific name in mind, the fastest route is the offer form on its page. If you want to talk through the process first, contact us.
Frequently asked questions
How long does a domain transfer take?
Three to five business days is typical for a .com once payment clears. A push between accounts at the same registrar can complete in hours; a transfer between registrars runs on ICANN timing and takes longer. Domains inside the 60-day post-registration or post-transfer lock cannot move at all until the lock expires.
Is escrow really necessary for a domain purchase?
For anything above a token amount, yes. Escrow removes the need for either side to go first, which is the entire risk in a private domain sale. The fee is small relative to the exposure, and no legitimate seller will object to using one.
What happens if the seller takes the money and does not transfer?
With escrow, nothing — the funds never reach the seller. Escrow releases only after you confirm the domain is in your account. If the transfer does not happen, the transaction is cancelled and you are refunded.
Do I need to keep the domain at the seller's registrar?
No. You can accept a push into an account at the same registrar and move it later, or request a transfer directly to your own registrar. The push is faster and is usually the better first step.