Transferring Ownership
To change domain ownership in NZ, you must initiate a Change of Registrant (CoR) process through your current registrar. This legally transfers the rights of the .nz domain name from the current holder to a new individual or entity. The process typically requires a valid Unique Domain Authentication ID (UDAI) and often incurs a transfer fee.
Transferring the legal ownership of a domain name is a critical administrative task that differs significantly from simply moving a domain between hosting providers. In the New Zealand market, the .nz domain space is regulated to ensure transparency and accountability. Whether you are buying a premium domain, selling a business asset, or restructuring a company, understanding the nuances of the Change of Registrant (CoR) process is essential to avoid legal disputes and service interruptions.
What is the difference between Registrant Transfer and Registrar Transfer?
One of the most common sources of confusion in the domain industry is the distinction between a “Registrant Transfer” and a “Registrar Transfer.” While they sound similar, they perform fundamentally different functions regarding the status and control of your web property.
Registrar Transfer involves moving the management of your domain name from one service provider (e.g., GoDaddy) to another (e.g., Crazy Domains or a local NZ provider). In this scenario, the owner (the Registrant) remains exactly the same. You are simply changing the company you pay your renewal fees to and the interface you use to manage DNS settings.
Registrant Transfer (Change of Ownership), on the other hand, is the legal assignment of the domain name license to a different person or legal entity. This is the process required when a business is sold, or a domain is purchased on the aftermarket. In the context of New Zealand’s domain namespace, this is formally known as a Change of Registrant (CoR). When you perform a CoR, the legal rights and responsibilities associated with that domain name are extinguished for the old owner and established for the new owner.
It is important to note that you can perform both simultaneously, but they are distinct transactions. Often, when buying a domain, the buyer will want to move the domain to their preferred registrar immediately after the ownership change is ratified.
How does the Change of Registrant (CoR) process work?
The Change of Registrant process is a formal procedure mandated by the Domain Name Commission (DNC) in New Zealand to ensure the integrity of the .nz register. Unlike generic top-level domains (gTLDs) like .com, which follow ICANN’s transfer policies, .nz domains follow local regulations designed to protect both buyers and sellers.
The process generally follows this workflow:
- Initiation: The current owner (Registrant A) or the gaining owner (Registrant B) contacts the current registrar to request a Change of Ownership.
- Authorization: The registrar must verify the identity of the current owner to prevent hijacking. This is often done via email confirmation sent to the administrative contact email address on file.
- Agreement: Both parties must agree to the transfer of the license. The new owner must agree to the standard terms and conditions of the .nz domain space.
- Execution: Once the fee is paid and authorization is received, the registrar updates the registry database.
- Completion: The public WHOIS (or Query Service) data is updated to reflect the new legal owner.
During this process, the domain remains active, but it is locked from being transferred to a different registrar until the ownership change is complete. This prevents administrative conflicts.
What is a UDAI and why is it critical?
The Unique Domain Authentication ID (UDAI) is the cornerstone of domain security in New Zealand. It is an 8-character alphanumeric code that acts essentially as the password for your domain name. Without a valid UDAI, you cannot transfer a domain to a new registrar or authorize a change of ownership in many automated systems.
A UDAI is generated by the registrar and is valid for a specific period. If you are selling a domain, you must generate a fresh UDAI and provide it to the buyer or the escrow service handling the transaction. It is vital to keep this code secure; anyone who possesses your UDAI and knows your domain name could potentially initiate unauthorized transfers.
If you are the buyer, you should verify the UDAI immediately upon receipt to ensure it is valid. You can do this using the Domain Name Commission’s UDAI validation tool. If the UDAI is invalid or expired, the transfer cannot proceed, and the seller must generate a new one.
How to update records with the Domain Name Commission?
The Domain Name Commission (DNC) regulates the .nz domain market. They do not manage individual domains directly—that is the job of the registrars—but they maintain the integrity of the data. When you change domain ownership in NZ, the registrar pushes this data to the central registry overseen by the DNC.
Accuracy is non-negotiable. Under .nz policies, the Registrant Name field must accurately reflect the legal entity holding the domain rights. If a domain is registered to a company that has been struck off the Companies Register, the domain registration may be cancelled. Therefore, during a CoR, you must ensure:
- Individual Ownership: The full legal name of the person is used.
- Company Ownership: The full registered company name (e.g., “Example Limited”) is used.
- Trusts and Partnerships: The specific legal structure is accurately represented according to DNC guidelines.
If you fail to update these records correctly during a transfer, you risk losing the domain later if a dispute arises. The DNC provides a dispute resolution service, but your position is significantly weakened if the WHOIS data is inaccurate.
What are the fees associated with ownership changes?
The cost to change domain ownership in NZ varies significantly depending on the registrar you use. Unlike a simple renewal, a Change of Registrant is a manual administrative process for many registrars, and they charge accordingly.
Standard Registrar Fees
Most registrars charge a one-time administration fee to process a CoR. This fee can range from $20 NZD to $100 NZD + GST. Some premium registrars or managed service providers may charge more if they handle the paperwork and negotiation on your behalf.
Renewal Resets
In some cases, the Change of Registrant process triggers a reset of the registration period. This means that alongside the administration fee, the new owner may be required to pay for a full year of registration upfront. This “resets the clock” on the domain expiry date. It is crucial to clarify with your registrar whether the existing registration term carries over or if a new term begins.
Brokerage and Escrow Fees
If the change of ownership is the result of a high-value domain sale, there may be additional costs involved. Escrow services (like Escrow.com or local equivalents) typically charge between 3% and 10% of the transaction value to hold the funds securely until the domain ownership is successfully verified.
Step-by-Step Guide to Changing Domain Ownership NZ
To ensure a smooth transition, follow this detailed checklist. This assumes you are the current owner looking to transfer to a new party.
Step 1: Prepare the Domain
Log in to your registrar portal. Ensure that your contact details are up to date, specifically the administrative email address. If this email is defunct, you will not be able to approve the transfer. Remove any “Registrar Locks” that prevent changes.
Step 2: Request the UDAI
Generate a new UDAI from your control panel. This code is sensitive. Copy it securely. Do not send this to the buyer until you have secured payment or a contract is signed.
Step 3: Initiate the CoR
This step can be started by either party, but usually, the current owner fills out a “Change of Registrant” form provided by the registrar. You will need the new owner’s full details:
- Full Legal Name (or Company Name)
- Physical Address
- Email Address
- Phone Number
Step 4: Pay the Fee
Decide who is paying the CoR fee. In a sales scenario, this is often the buyer, but in a corporate restructuring, the business pays. Submit payment to the registrar.
Step 5: Validation and Completion
The registrar will process the request. They may send a confirmation email to both the old and new contacts. Once approved, the registry is updated. The new owner should immediately log in, change the UDAI (to invalidate the old one), and update DNS settings if necessary.
Common Pitfalls and How to Avoid Them
Even with a structured process, things can go wrong. Here are the most common issues encountered during NZ domain transfers:
1. The “Registrant Contact” Email is Inaccessible
If the domain was registered years ago by an employee who has since left the company, the approval email will go to a dead inbox. Fix: You must update the contact email before initiating the transfer. If you cannot access the account, you will need to go through a rigorous identity verification process with the registrar or DNC.
2. Confusion Over Billing vs. Registrant
Many people assume that because they pay the bill, they own the domain. This is false. The “Registrant” listed in the WHOIS database is the legal owner. If your web developer registered the domain in their name, they legally own it, even if you paid for it. Fix: Check your WHOIS data immediately and initiate a CoR if the developer is listed as the registrant.
3. Dispute Resolution Delays
If a domain is involved in a legal dispute or a Dispute Resolution Service (DRS) case with the DNC, it is usually locked. You cannot transfer ownership until the dispute is resolved. Fix: Ensure clear title to the domain before attempting to sell or transfer it.
By strictly adhering to the .nz policies and understanding the technical requirements of the Change of Registrant process, you can ensure that your digital assets are transferred securely, legally, and without unnecessary downtime.
How long does a domain ownership change take in NZ?
Once the fees are paid and both parties have authorized the transfer, the technical update is almost instantaneous. However, the administrative processing by the registrar can take anywhere from 1 to 3 business days depending on their specific workflow.
Can I change domain ownership if the domain has expired?
Generally, no. You must renew the domain first to bring it back to an active status before a Change of Registrant can be processed. Some registrars may allow a simultaneous renewal and transfer, but it is safer to renew first.
Do I need a lawyer to change domain ownership?
For standard transfers, a lawyer is not required. The registrar handles the process. However, for high-value transactions involving significant sums of money, it is highly recommended to use a legal contract and an escrow service to protect both parties.
What happens to the email accounts associated with the domain?
Changing ownership does not automatically delete email accounts, but if the new owner changes the DNS settings or hosting provider, email service will be interrupted. Coordination regarding DNS settings is crucial to maintain email continuity.
Is the UDAI the same as the EPP code?
Yes, in the context of domain transfers, the UDAI (Unique Domain Authentication ID) serves the same function as an EPP code or Auth Code used in other domain extensions like .com.
Can I hide my details after a change of ownership?
Individuals can opt for the .nz Individual Registrant Privacy Option (IRPO) to withhold their address and phone number from the public WHOIS. However, the Registrant Name is usually always public. Businesses generally cannot hide their contact details on the .nz register.
