What Is LTO (Lease-to-own)? Domain Glossary

Why it matters

LTO helps startups that cannot pay the full price at once. Sellers earn the full price over time and widen their pool of buyers. GoDaddy offers terms from 2 to 60 months. Ownership moves to the buyer after the final payment. The buyer should confirm what happens if a payment is missed, and what rights apply in the meantime. A common mistake is treating an LTO name as owned. Until the last installment, the seller still controls the registration.

Source: godaddy.com

Where we use this term

Related terms

Domain lease: An arrangement where the owner lets another party use a domain for a recurring fee, without transferring ownership. The lessee points the domain to their site while the owner keeps the registration.
Payment plan: A payment plan is an agreement where the buyer pays for a domain in installments instead of one lump sum. The seller usually keeps control of the name until the last payment clears.
Seller financing: Seller financing is when the domain owner lets the buyer pay over time, taking on the credit risk. It is a type of payment plan where the seller acts as the lender.
Domain purchase agreement: A written contract for a domain sale. It states the domain, price, payment method, transfer steps, timing and each side's promises, such as clear ownership of the name.
Afternic: Afternic is a domain marketplace owned by GoDaddy where owners list names for sale. It also distributes listings to partner registrars so buyers there can find and buy them.

All 205 terms

Lease-to-own (LTO)

Why it matters

Where we use this term

Buying or selling a domain?