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escrow

A service where a neutral third party holds the buyer's money until the seller transfers the domain. When the transfer is confirmed, the money is released to the seller. It lowers the risk of fraud in domain sales.

category
Aftermarket and investing

Updated on 4 min read

In a domain sale, escrow means that a neutral third party holds the buyer’s money until the seller has handed over the domain name A readable internet name made of labels separated by dots. Full definition. When the handover is confirmed, the money goes to the seller. Neither side has to trust the other to go first.

What domain escrow is

An escrow service sits between buyer and seller. It takes the buyer’s payment, keeps it while the domain changes hands, and pays the seller once the buyer controls the name. Escrow.com An online escrow company widely used to close domain sales. Full definition is one company that offers this service; naming it is not a recommendation.

ICANN Internet Corporation for Assigned Names and Numbers The nonprofit that coordinates the global DNS and gTLD policy. Full definition does not regulate sale escrow, but its transfer rules recognise it: the Transfer Policy Review ICANN process whose adopted but not yet implemented recommendations will change gTLD transfer rules. Full definition recommendations, adopted by the ICANN Board ICANN's board of directors, which adopts policies and approves key decisions. Full definition on 7 June 2026, list “an escrow intermediary” among the reasons a registrar A company that registers domain names for customers with the registry. Full definition may lift a transfer lock A restriction that blocks a domain from moving to another registrar. Full definition early.

The word has a second, unrelated meaning. data escrow Backup copies of registration data held by an independent agent in case a registry or registrar fails. Full definition is a duty of ICANN-accredited registrars and gTLD generic top-level domain A top-level domain not tied to a country, run under ICANN contracts. Full definition registry The central database and system of a top-level domain, or loosely the organization that runs it. Full definition: they must store copies of registration data The information kept about a domain and its owner. Full definition with a neutral third party, so that names keep working if the company stops operating.

Why use escrow in a domain sale

Every private sale has a problem of order. If the buyer pays first, the seller may never deliver. If the seller hands over the domain first, the buyer may never pay. An escrow service holds the money until both sides have done their part.

ICANN’s Transfer Policy ICANN's rules for moving gTLD domains between registrars and changing registrants. Full definition lists evidence of fraud among the grounds on which a registrar may refuse a transfer.

How an escrow transaction works, step by step

The details vary by provider, but the general pattern is:

  1. Buyer and seller agree on the price, the terms and the escrow service.
  2. The buyer pays the escrow service.
  3. The seller hands over the domain.
  4. The buyer, or the service, confirms that the buyer now controls the domain.
  5. The service releases the money to the seller.

Handing over a gTLD name

Step 3 follows ICANN’s Transfer Policy. A gTLD name changes hands through a change of registrant A change of a domain's owner details, with confirmation steps. Full definition at the same registrar, or through a move to the buyer’s registrar (an inter-registrar transfer) plus a change of registrant. As of October 2026:

  • A change of registrant is a material change to the registrant The person or organization that holds a domain name registration. Full definition’s name, organization or email address.
  • The registrar must get confirmation from both sides, or from a designated agent Someone a registrant authorizes to approve a change of registrant on its behalf. Full definition that either side has explicitly authorized, such as an escrow intermediary.
  • The buyer must enter into a registration Obtaining the right to use a domain name for a set period. Full definition agreement with the registrar.
  • If the change is not confirmed within the period the registrar sets (60 days at most), it does not go ahead. Once confirmed, it is processed within one day and both parties are notified.
  • After a change of registrant, the registrar must block transfers to another registrar for 60 days, unless the seller opted out beforehand. That is why the policy advises moving to the new registrar first and changing the registrant afterwards.
  • A registrar may refuse a transfer within 60 days of the name’s creation or of a previous transfer.

Adopted changes, not yet in force

On 7 June 2026 the ICANN Board adopted the 47 Transfer Policy Review recommendations. As of October 2026 they are not in force and have no effective date. Once implemented:

  • A change of registrant will no longer trigger a lock.
  • Fixed locks of 720 hours (30 days) will apply after registration and after an inter-registrar transfer.
  • The lock after a transfer may be lifted early, for example when an escrow intermediary affects the completion of a purchase, or to complete a documented aftermarket The market where domain names that are already registered are bought and sold. Full definition purchase.

Handing over a .es name

For a .es name, the change of holder goes through Dominios.es, the site of Red.es The Spanish public body that manages the .es domain through its unit Dominios.es. Full definition, whose English page calls it a “transfer”. The accredited registrar that manages the name, the holder or the administrative contact can start it. The new administrative contact receives an email and confirms by accepting the terms and conditions. The page states no fee or deadline.

Worked example

The holder of example.com agrees a price with a buyer, and they choose an escrow service. The buyer pays the service. The buyer wants the name at another registrar, so the seller starts an inter-registrar transfer first, avoiding the 60-day lock A 60-day period after certain domain events when a registrar transfer can be refused or blocked. Full definition that a change of registrant would trigger under the current policy. Once the name is at the buyer’s registrar, in the buyer’s name, the service releases the money.

Costs and timing

Escrow services charge a fee set by each provider. Check the provider’s current fees and agree in advance who pays.

Timing depends mostly on the handover. As of October 2026, a confirmed change of registrant is processed within one day, and 60-day locks can apply; under the adopted changes, the locks become 720 hours. The provider’s own steps add time.

Fake escrow sites and other scams

Scams can imitate escrow services. These precautions reduce the risk; none guarantees safety:

  • Be wary when the other party insists on an escrow service you do not know.
  • Reach the escrow service by typing its address yourself, not through a link the other party sends.
  • Before releasing a domain or money, check the domain’s status in RDAP Registration Data Access Protocol The modern protocol for looking up domain registration data, replacing WHOIS. Full definition and with your registrar.
  • Do not hand over a domain just because an email says the funds are “secured”: confirm it with the escrow service directly.

For questions about a sale contract, check with a lawyer.

  • Data escrow is a continuity duty of registries and registrars, not a payment service.
  • A domain broker An agent who negotiates domain purchases or sales for a fee. Full definition negotiates the deal; escrow only holds the money.
  • lease-to-own Buying a domain in installments, with ownership after the last payment. Full definition spreads the price over payments, and ownership passes after the last one.
  • Escrow.com is one company that offers escrow; the term names the service.

Sources

related terms