How Escrow works?
Hi all,
This week I sold a site using Escrow.com for the first time. For those who don’t know what escrow is and how to use it, here is a small explanation.
First of all what is escrow?
Escrow is a service that offers you protection when you buying or selling products. It is designed especially for virtual products like domain names or websites. Unlike paypal, they take care of the transaction, so if something goes wrong, both parties (seller or buyer) have a protection.
For example let’s say you want to buy a website. You contact the seller and you agreed on a price. Now here come the tricky part. You need to transfer him the money before the seller transfer you the domain. If you are using paypal you take a risk. You can send him the money and he can disappear without transfer you the domain. Paypal will do nothing about it, no mater how much you will complain. They will response that they don’t take responsibility for virtual transactions. Believe me, I tried 
It is not that bad if you sent $40 for a service and you never got it. But if you send $2000 and the seller is gone with the money, you $ucked.
So if you are sending more than $200, use escrow.
How to work with escrow?
I have to admit that I had a lot of luck with my transaction. I wrongly used the system and I was in risk to lose my site and not to get the money. Why? Because I didn’t follow the procedures…
So let me save you some time. Here is the right way to do it:
1) The buyer login to escrow and open a new event. He/She sets the terms and conditions.
2) The seller will get an email asks them to login to their account (or to create one, if they don’t have) and accept the terms and conditions.
3) The buyer will have to pay using credit card or other method. Then Escrow will ask the buyer to send a fax to confirm the identity of the card holder. Once the buyer do it, the seller will get an email asking to login again to the account.
4) In their account the seller should choose the domain registration company, and send a request to transfer the domain.
5) Escrow will check if the domain has been transferred to the new owner and will send to the seller the money.
If for some reason the domain hasn’t been transferred the buyer will get the money back.
Now for the seller here is a very improtant tip: Don’t ever transfer the domain before you get a confirmation that the buyer has paid. Otherwise you are risking loosing your site. The buyer can pull out and cancel the transaction, and you will lose your site.
Hope it makes it clear 
Assaf