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How Does Domain & Website Escrow Work?

SPUNK13 · 5 min read · Updated July 2026

Escrow is a neutral third party that holds the buyer's money until the seller delivers the asset. It's the single best protection against getting scammed in a domain or website deal.

The step-by-step flow

  1. Agree terms: price, exactly what's included, and the timeline.
  2. Buyer funds escrow: money goes to the neutral service, not the seller.
  3. Seller transfers: domain push/transfer, and for a website, all agreed assets.
  4. Buyer confirms: they verify the transfer is complete and correct.
  5. Escrow releases funds: only then does the seller get paid.

Why it protects both sides

The buyer can't lose money without getting the asset; the seller can't lose the asset without getting paid. It removes the "who goes first?" standoff that scammers exploit.

What it costs

Escrow charges a fee (a small percentage), typically split or assigned by agreement. It's cheap insurance against a total loss on a five- or six-figure deal.

Don't improvise

Never wire money directly to a stranger for a domain, and never transfer a domain before funds are secured. Use a reputable escrow service on every deal — it's the standard for good reason. This is how our brokerage closes every transaction.

FAQ

Who pays for escrow in a domain sale?
It varies — the fee may be paid by the buyer, the seller, or split. Agree it up front as part of the terms.

Is escrow necessary for small domain sales?
It’s strongly recommended for anything beyond trivial amounts. The fee is minor insurance against losing the whole payment or asset.

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