How escrow works
Escrow keeps the money safe while a domain changes hands. Here is exactly who holds what, and when it moves — in five plain steps a first-time seller can follow.
Last updated 4 August 2026
What escrow is
Escrow is a neutral third party that holds the buyer’s money while a sale completes. The buyer pays up front, but the seller is not paid until the domain has actually arrived. Neither side can walk off with the other’s money or property. It is the same principle a solicitor uses when you buy a house, applied to a domain name.
Who holds the money
The funds are held by an independent escrow provider, not by us. We run the auction; the escrow agent holds and releases the money. That separation is the whole point — the party taking the payment is not the party that gets paid, so there is no way for us to release your money early or to a seller who has not delivered.
Step one — the domain is won
When the hammer falls, the highest bid above any reserve wins and a contract of sale is formed. The buyer and the domain are matched, and the price is fixed.
Step two — the buyer funds escrow
The buyer pays the hammer price into the escrow account within the payment window. The money sits with the escrow agent. It is not ours, and it is not yet the seller’s.
Step three — the seller releases the domain
Once escrow confirms the money has arrived, the seller releases the domain and it is pushed through the registry towards the buyer’s registrar account. The seller acts only after being told the funds are safely held.
Step four — we confirm it is in the buyer’s account
We check that the domain has landed in the buyer’s registrar account and is under their control. Nothing is released until this is confirmed. Most transfers complete within 24 hours.
Step five — escrow pays the seller
With the domain confirmed in the buyer’s account, the escrow agent releases the funds to the seller, less any commission. The buyer has the name, the seller has the money, and the sale is done.
If something goes wrong
If the domain never arrives, or is not what was described, the funds stay in escrow. The escrow agent holds the money while we investigate, and if the transfer cannot be completed the buyer is refunded in full. Raise a problem by emailing hello@ukdomainauctions.co.uk and we will act on it the same working day wherever we can.
What escrow costs
Escrow is included in every sale — you do not arrange or pay for it separately. The full breakdown of buyer and seller charges is on our fees page.
Before you bid or sell
Bidders should read the auction rules for how bidding, increments, and the payment window work. Sellers can start with a free valuation on our sell a domain page — the same escrowed settlement applies to every domain the house handles.