Selling a Domain Name
If you are selling a domain name, your main goal is to get
your money quickly and not hear from the purchaser again.
Escrow
Due to the inability of exchanging money and a domain name
simultaneously, parties often use an escrow service, such
as www.escrow.com. Using an escrow service means that the
purchase money is held by a neutral third party until the
name transfer has occurred and then released to the Seller.
Depending on the level of savvy and trust between the parties,
this process can help greatly. Be wary of using parties for
this process who are not truly disinterested or one untrustworthy,
such one party's attorney or corporation, or the registrar.
The procedures for picking, using and paying for the escrow
process should be set forth in the agreement. If you are selling
a name, you should state a time limit by which the money should
be paid after transfer of the name.
Warranties
If the purchaser requests warranties of full ownership of
the name, and the lack of any pending litigation or disputes
about ownership of the name, or that the name does not infringe
any trademark or violate any third party's rights (discussed
below under "Purchasing a Domain Name") and you are the seller, be sure
that the wording reflects that these warranties only cover
what you are aware of at the time of signing the contract.
Otherwise, you may be held contractually responsible for future
ownership disputes, regardless of whether you had any knowledge
of them.
Miscellaneous
In order to lessen any future litigation costs regarding
the sale and increase all legal benefit to you, the Seller
should designate the place where any disputes regarding the
sale will be litigated (the venue), the state law which will
apply and whether attorneys fees may be awarded to the winner.
Buying a Domain Name
If you are buying a domain name, your main goal is to get
the name and clear title to the name transferred to you promptly.
Transfer
The Purchaser should ensure that all possible title and interest
are transferred, including any language requirements under
trademark law, and a waiver of any future right to dispute
the sale by the Seller.
Escrow
Using an escrow process is often beneficial for the Purchaser.
The procedures for picking, using and paying for such a process
should be set forth in the agreement. If you are buying a
name, you should be sure that the process for transfer is
set forth and compatible with that required by the registrar
and that your payment is not released until confirmation of
successful transfer from the registrar or your receipt of
notarized transfer documents.
Warranties
If you are purchasing a domain name, you will, at least,
want the Seller to warrant to you than there is no ownership
dispute about the name, that the Seller is authorized to sell
the name and that the sale will not violate any third party's
rights.
Miscellaneous
As it is for the Seller, it is also helpful to the Purchaser
to determine beneficial venue, state law and attorney's fees
provisions.
Notarized Signature
The Purchaser should request that the Seller have her signature
witnesses by a notary so that there is a witness if the Seller
should later dispute the contract or the sale.
Conclusion
Buying or selling a domain name can be a smooth process with
the right agreement. Without one, both sides risk failing
to have their expectations met, failing to comply with domain name registration laws and domain name law, and can end up with a lawsuit and a domain name. You can buy Domain
Name Purchase or Domain
Name Sale Agreement legal forms from the author.
1 Readers are cautioned not to rely
on this article as legal advice as it is
no substitution for a consultation with an attorney in your
state. Based
on jurisdiction and time, the law varies and changes.
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