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Buying and selling

Due diligence

Due diligence is the checking a buyer does before paying for a domain. It confirms who owns the name, whether it carries legal or technical problems and whether the price is fair.

Why it matters

Good due diligence takes a few steps. Confirm ownership at the registrar, check the name's history and look for trademark issues. Check for spam or blacklist history that could harm email. Review comparable sales to test the price. Use a trusted escrow service. A common mistake is skipping history checks on a cheap name. A domain with a bad past can carry search penalties or blocked email, and the buyer inherits those problems.

Source: escrow.com

Read nextDomain Sale Scams: How to Spot Fake Buyers, Appraisal Scams, and Fake Escrow

Where we use this term

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