How Escrow.com Spent 5 Figures Protecting an Agreement
The job of an escrow service is to protect the buyer and the seller equally without prejudice. The escrow agent ensures that the buyer pays for the domain name, and the agent ensures the seller transfers the domain name. On occasion, there are issues with a transaction and the escrow service needs to act in order to protect one of the parties. I want to share a story about how Escrow.com protected a domain buyer who used its services.
A buyer and a seller engaged Escrow.com on a domain holding transaction. The buyer agreed to pay a certain amount of money over a period of time, and Escrow.com held the domain name in its domain registrar account during the term of the agreement. At some point during the holding period, the seller received a better offer and attempted to cancel the transaction.
In order to protect the deal and enforce the terms of the escrow agreement, Escrow.com rejected requests to cancel the deal, and per the terms of the agreement, it ended up in arbitration in California. The company spent a considerable amount of money in legal fees (in the low 5 figures from what I understand), and they were able to ensure the integrity of the transaction was upheld. It is likely that Escrow.com spent considerably more money than it stands to gain from this particular deal, but I think it illustrates why they are the trusted brand in the domain space.
According to the buyer who contacted me about this, “The seller caused a lot of trouble to me and Escrow.com. Escrow.com did everything they could to make sure that the integrity of the transaction was protected. Escrow.com lost money in this transaction but they gained the respect from my lawyers and me.”
Unfortunately, due to non-disclosure agreements, I do not have (and therefore can not share) specific details about the domain name or the parties involved.
I have used Escrow.com for just about all of my domain name acquisitions and sales that required an escrow service. Knowing that Escrow.com is willing to go above and beyond to help protect one of the parties in a transactions gives me confidence and helps to assure other parties that the company will protect their interests as well.
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