advice Sold 3L Domain on SEDO for 6 digit USD - Buyer not willing to pay

[zotix]

Dear Community,

I sold a Domain at SEDO.com for a total amount, which is near the mid-6-digit range.
I received the Offer and accepted it. There was no Typo from the Buyer or anything else he claimed.

After several Reminders from SEDO and some calls, the buyer asked to cancel the Transfer.
SEDO told him that this is not possible due to the contract, which is effective.
He just dropped the call, and SEDO is now canceling the internal Transfer Service.
I know that the contract is still valid, but unfortunately, SEDO is hiding behind its role as a platform.

Currently I'm more angry on the behavior of SEDO, than on the Buyer.
How is it possible, that SEDO has 3 different Certification Roles:

1. Buying up to 10k (Standard)
2. Buying up to 100k
3. Buying upwards 100k+

Where do they ask for bank statements, complete KYC, and all that stuff, and still there are IDIOTS like this buyer?
I read posts in other forums, where those things already happened in 2008.
It's totally ridiculous from a Platform that claims to be the "biggest premium domain platform" worldwide - and can not implement better controls or at least cooperate with the Seller.

Im pretty sure, If I would win the case, they would come and ask for the Provision.

I will not reveal the Domain Name, but I can say that I'm from Germany and the Buyer is from the United Kingdom.
I'm just asking them to provide me with all the Data they can give so that my lawyer can check the probability of winning or at least getting some money.
It's not even clear if this person is financially stable to pay such an amount.
Asking SEDO about ANY transactions that the buyer might have done in the past was declined due to data privacy. What the hell? It's just a "YES" or "NO," nothing that lets me know who the buyer might be.

I'm not sure how to deal with that situation.
Im in contact with 3 of the TOP lawyers in GER specializing in that field.

What is your experience with such transactions?
And why the hell is SEDO acting like this?

KR
zotix

 

[jberryhill]

I do not intend to waste anyone's time here - If so, I'm sorry.

Oh, we're all capable of choosing how we spend our time.

I like the first lawyer's answer.

Random people make offers on domain names all of the time.

But, as I once said to someone who called me up and said...

"I need help. I'm being sued for one hundred thousand dollars!"

"Do you have a hundred thousand dollars?"

"No!"

"Well, I'll start with the the good news. You aren't going to lose a hundred thousand dollars."

 

[zotix]

My advice and I am in UK
1. Get the buyer data and push for that
2. Look up buyer and read the fine print of the contract
3. This could be litigated in UK and/or Germany
4. If and a big if this is a big company then by all means sue in both jurisdictions as he bought in UK and you sold in Germany
5. If not live and learn

Thanks for your reply; this is also valuable for me, as you are someone from the UK and probably know about UK law.
I understand that German Lawyers see the $$ and want to get the mandate. I have good coverage with my insurance and manager's insurance. Anyway, the UK part is most likely not covered (I will ask tomorrow).
One thing is clear: I'll get the buyer's data for sure. SEDO already confirmed this, as have the lawyers I have spoken to.


@jberryhill

There is a German definition for that kind of "paradoxical situation," which could be translated into something like It’s a catch-22.
In Germany, its translated as: "That's where the cat bites its own tail"

It's a loop; the solution to the problem is somehow the problem.
This gets me back to SEDO, offering that kind of "trolls" somehow a platform.

I precisely can forecast what will happen at the end of the day:
This buyer is someone whom I can not find via search engines or web scrapers.
The logical side of my brain (if it's even available at this moment) will tell me to move on and not give a sh** about this specific transaction.

But personally, this throws a shade on SEDO, something I never thought.
Where to sell HQ Domains, then? If even the biggest Marketplace steps back when someone breaks the contract rules - but somehow appears when someone wins a lawsuit.

I hope that the place of jurisdiction is in Germany.
Then, the buyer will be a naked man.

Besides that, I have no issue with making this behavior more public here in Germany.
I'm sick of this.

Kind regards, zotix.

 

[Future Sensors]

@zotix What insurance is that?

 

[zotix]

@zotix What insurance is that?

"Legal expenses insurance" from ARAG in Germany, the highest package (Premium) + Manager Insurance

Edit: So I have literally Legal protection in contract and property law for contracts concluded via the Internet - unlimited within Europe

 

[Future Sensors]

@zotix Keep us informed

 

[Future Sensors]

@zotix I'm just curious to see how such a legal expenses insurer will handle your specific case. How much time will they invest, how much expertise they have in-house (or hire externally) and what the result will be. You know, there are very few people who do this (maybe with a reason). Prepare yourself for possible frustration. If you can hand it over and not worry about it too much, that's the best. Again, good luck.

 

[zotix]

I need to call them and tell them the case and the sum of the contract that has not been fulfilled.
Based on this information and some questions from them (Insurers always try to reject in the first place), they will approve or decline, but since it's a contract-related topic, I assume they will cover it. Also, I used legal protection just once, paying for years. So sometimes, I paid legal advice or anything related to this cash instead of using the insurance to have a clean History and not get declined when it got serious.
After getting the approval for my case, usually the lawyer (I can choose whomever I want; they also provide lawyers, but I have specifically selected the option to choose on my own), the lawyer will write to the insurance and ask for coverage. Amount of the sum that needs to be paid + additional expenses (lawyer costs, lawsuit, etc.).
Then they will hopefully accept this, and the Lawyer will work on that.

But I will consider it; the Buyer's Data will be crucial in the course. If a person appears on the internet or I find more information, I'll go this way—even when Insurance declines, I would put cash on the table to get justice.

So, I think I will have more information about this buyer who asked to cancel the Domain Transfer by Monday at the latest.
If you/he is reading this, shame on you.

It's a pity I must deal with such situations, even though I have other things to do.
I don't know what my advice would be to someone in a similar situation, where a contract worth nearly half a million dollars is just broken by hanging up the phone—and the platform says that they will cancel the transfer—that's it.
If so, then SEDO has no credibility for me anymore. I can easily create 50 Accounts and tease other sellers. It seems like you don't care.
In case I have no success in finding the buyer, the last thing I'll do is check SEDO's behavior and due diligence, as well as their buyer certifications with a lawyer in Germany.
It can't be the reality that you get fooled everywhere. I'm not willing to sell any valuable Domains to people on NamePros who do not appreciate them, asking for $150$ a Domain with Premium Western letters - "wholesale price only."

Just frustrated.

Kind regards,
zotix

 

[Future Sensors]

@zotix Interesting that you live in Germany. Which Sedo entity did you actually officially do business with? The US LLC or the German GmbH?

 

[Future Sensors]

For Customers who reside outside the United States or Canada, the party you are contracting with is Sedo GmbH, which is headquartered in Cologne, Germany, and you are subject to the Sedo GmbH Terms and Conditions in order to use the websites and services of Sedo.

https://sedo.com/us/about-us/policies/general-terms-and-conditions/

 

[zotix]

The German one, Sedo GmbH, with their Office in Cologne.

https://www.northdata.com/Sedo+GmbH,+Köln/HRB+35019

 

[zotix]

For Customers who reside outside the United States or Canada, the party you are contracting with is Sedo GmbH, which is headquartered in Cologne, Germany, and you are subject to the Sedo GmbH Terms and Conditions in order to use the websites and services of Sedo.

https://sedo.com/us/about-us/policies/general-terms-and-conditions/

Thank you very much!
I already know that German law is applicable, but the thing I need to find out is where the place of jurisdiction is.
If it's Cologne, it's easy - since I can fully escalate this situation.
If it is GB, then it is a bit more complicated since my "potential" lawyer would need another UK lawyer to cooperate with.
But I did not studied law, I'm just a random Economics guy - so everything I'm writing regards to law, is just research and own interpretation.

Kind regards, zotix

 

[DNAAS]

I had same guy from Bangladesh buy 2 domains then cancel in quick succession.

Last night I have just had a sale on sedo and had a look at the contract. It is well written and secure.

You can choose jurisdiction as you have a choice based on cost but also which will work.

A legal case won by you in Germany may not be enforceable in UK.

 

[zotix]

And more to add: @Sedo SHAME ON YOU!

 

[DNAAS]

It is not a celubrious area.

You have found the buyer and now you should stop before you get into trouble

 

[wizard]

Happens on all platforms just move on...

 

[zotix]

I do not get any hit, if you get any - let me know.
Its just a fake

 

[Future Sensors]

@zotix You seemed to be so polite, earlier.

 

[bmugford]

I do not get any hit, if you get any - let me know.
Its just a fake

It seems like a real address. Search it without flat number.

I think this is kind of a fool's errand to pursue, but best of luck.

Brad

 

[zotix]

Yes, i am actually. But now im getting angry, receiving such contact details.
And tbh. I really don't care anymore, please buyer - open a legal dispute against me.
www.linkedin.com/in/musq

that's me.

zotix

 

[zotix]

@zotix You seemed to be so polite, earlier.

Im sorry for that, but im driven by emotions and this ridiculous behavior of a so-called leading premium platform.
That is not my attitude; reading my comments makes me feel a bit uncomfortable, but even though this address exists, the person living here does not.

I truly hope he opens a lawsuit against me so I can fully act against him.

I should (with a clear mind) just let it go and move it.

Maybe in 1-2 Days, I think differently.
As of now, I'm just angry- especially because @Sedo does not answer this topic.

zotix

 

[Future Sensors]

@zotix Thank you for proving that you are human. Somewhere in the process you let go of your rational side, which is also human. It's a shame that it all became so visible. Have a coffee

 

[Andreas B.]

People here just had similar cases, not long ago...

I for ex. bought a domain, transferred funds, and then the seller simply cancelled the deal.

The only one that can act on this, is the marketplace.

For ex. banning such a seller / buyer, who, after agreeing on a deal, does not follow the rules.

But the marketplaces are unfortunately not acting like this...


You won't be able to do anything about it.

 

[Jannes]

That's a homeless hostel address.

 

[DNAAS]

So you have now proved my suspicions. You were a management consultant then a trader. Not sure I need to add any more.

The address is real.

Keep this nonsense up and I am sure the buyer will come out.

You are really running into illegal / stalking territory, which in the uk is a criminal offence. Also so is online libel.

 

[Future Sensors]

That's a homeless hostel address.

Quite right about that.

"Another parallel is drawn with the hostel at 113-117 Cedars Road, Clapham Common, managed by St Mungo’s, another homeless charity operating in Battersea. The charity operated with up to 120 beds (ten times more than proposed for Lavender Hill), and it was reported that the behavior of hostel residents caused problems and distress for local residents."

And unfortunately, they are now also causing problems in the esteemed domain aftermarket. [1]

@Sedo Is the account still allowed to do business on your platform?

[1] well, not really them, because the address provided probably does not belong to the Sedo member