The risks of a secondhand purchase
A direct deal is dangerous not because of the format itself, but because of the unknowns: you don't always see who is in front of you and what is really happening with the domain. The main risks come down to a few scenarios.
- the seller isn't the owner – another person or company controls the domain;
- the money is received, but the domain isn't transferred, or is transferred with a delay;
- disputed rights – the domain replicates someone else's trademark and can be challenged;
- encumbrances – the domain is in a dispute, under seizure, or pledged in another deal.
Any of these scenarios means losing the money or the domain itself, so the check is best done before payment, not after.
What to check in advance
Before the deal, it's important to make sure the seller actually controls the domain and that the domain itself is "clean." The minimum set of checks looks like this.
- whether the owner in the registrar's data matches the person conducting the negotiations;
- whether the domain has a history of disputes, seizures, or rights claims;
- whether the domain name overlaps with a well-known trademark;
- what state the domain is in – active, renewed, with no upcoming expiry date.
A domain owner check covers part of this, and we've laid out the full procedure in the article "Checking a domain before purchase".
How to make the deal safe
The goal is to make sure the money and the domain change hands not on trust, but through a clear scheme with control at every step.
- check the owner and the domain's cleanliness before any transfers;
- handle settlements through a secure scheme, where payment reaches the seller only after the rights are transferred;
- for a complex or large deal, bring in a domain broker who will take the negotiations and settlements on themselves.
We've described how the secure settlement scheme works in the article "A secure domain deal".
Red flags
There are signs that warrant slowing the deal down and double-checking. On their own they don't always mean fraud, but together they're a reason for caution.
- the seller is rushing and refuses to wait for a check of the rights;
- refusal to show ownership data or confirm control over the domain;
- a request to transfer the full amount up front directly, bypassing the secure scheme;
- a price noticeably below market with no clear explanation;
- evasive answers about the domain's history and the reasons for selling.
A calm stance works in your favor here: a conscientious seller has no objection to a check and is fine with secure settlements. If simple steps are met with pressure, it's better to postpone the deal and look into it.