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Many buyers ask an important question before purchasing a domain name. Do I need escrow when buying a domain name.
The short answer is yes. Some form of payment protection is strongly recommended when buying a domain from another person.
Why escrow matters in domain purchases
Domains are digital assets. Once money is sent directly to a seller, the buyer has very little control if something goes wrong.
Common risks include
- The seller delays the transfer
- The seller stops responding after payment
- The seller never transfers the domain
Escrow or escrow like protection exists to prevent these situations.
What escrow does for buyers
Escrow ensures that the seller is not paid until the buyer receives the domain successfully.
This means
- The buyer payment is held securely
- The seller must transfer the domain first
- Funds are released only after delivery
This process removes the biggest risk for buyers.
Do modern domain marketplaces use escrow
Most professional domain marketplace platforms already include escrow style protection as part of the buying process.
Buyers do not need to arrange separate escrow services when using a managed marketplace.
An example for buyers
Platforms like DaaZ operate as managed domain marketplaces where buyer payments are protected.
On DaaZ, sellers are paid only after the domain is successfully handed over. If the seller does not deliver, the buyer does not lose money.
Final answer
Yes, you do need escrow or escrow like protection when buying a domain name.
The easiest way to get this protection is to buy through a trusted domain marketplace that manages payment and domain transfer end to end.
This keeps the process safe, simple, and predictable for buyers.
