Transfer of Delegation, Changes in Registrant’s Name

This is a tipical case where a registrant, whether a private or legal entity, transfers the right of use of a domain to another person under an agreement between them. (Legally, therefore, it is not a question of selling the domain, but of selling the right of use of the domain)

Upon transfer, the transferee will be the new domain applicant, but must comply with the terms of the Domain Registration Policy for domain applicants and enter into a contract with a registrar for domain registration and maintenance as any domain applicant. It is not necessary to contract with the current registrar of the domain.

The new domain applicant must submit a Declaration of Good Faith to the Registrar with an electronic signature based on a qualified certificate or with AVDH if:

• the Registry evaluates the application as a delusive domain name. If any deficiencies in the application have been remedied and, where applicable, the Registry has found the Declaration of Good Faith to be formally and substantively appropriate, the domain will be used conditionally by the applicant.
• If the transferring Domain User has previously made a Declaration of Good Faith in connection with the application for the domain, the new domain Applicant shall also be obliged to make the Declaration of Good Faith for the transfer if the Registry is of the opinion that the suspicion of fraud also exists in the case of the new Applicant.

How much does it cost to transfer a domain?

The fee to be paid to the registrar depends on whether the domain is registered on the basis of a deed or confirmation procedure, but the fee is set by each registrar himself.

In the case of document-based registered domain usually the one-time fee is equal to the fee for registering a new domain, which includes the two-year maintenance fee for the domain. This fee is independent of how long the previous (transferring) registrant has paid the maintenance fee. The transfer act will restart the domain’s maintenance period.

In the case of confirmation domain, the one-time fee is typically lower, depending on the registrant, it can be as high as zero, and the maintenance period of the domain does not change with the transfer.

1. The process of transfer in the case of a document-based registered domain

The new applicant (to whom the domain has to be transferred) must apply for the domain at a registrar. This can be a document-based application or a confirmation procedure-based application. Either way, if the domain is registered at the time of the transfer, the new domain applicant must send the transfer declaration document to the registrar along with the application.

It is neither necessary nor advisable to share the entire agreement between the parties with respect to the domain (or more domains) involved, with the Registrar and Registry. It is advisable for the transferring party to provide the tranferee with a separate transfer declaration in which they waive their full responsibility to use the domain for the benefit of the other party.

The transfer declaration shall contain at least the following information:

• Domain name (or names),
• Details of the transferor party: name, address (address or registered office), document identification number for a natural person or date of birth, tax number for a legal person,
• Details of the beneficiary: name, address, tax number for legal persons, identification document number for natural persons if possible or date of birth,
• Date.

In the case of a natural person transferor, the declaration must be included in a private document providing conclusive evidence.

In the case of a legal entity transferor, the declaration of resignation must be affixed with an authorized signature and a copy of the specimen signature must be attached. If the organization does not have a copy of its specimen signature countersigned by a lawyer, which is most conceivable for foreign organizations, a person acting on behalf of the organization must declare that he or she is authorized to act on behalf of the organization.

The registrar submits the application and the transfer document to the Registry, and if they meet the requirements of the Policy, the Registry registers the new domain user.

If the new user has requested the domain with a confirmation procedure, the Registry will carry out the confirmation procedure with it.

2. The process of transfer in the case of a confiramtion procedure-based registered domain

The new applicant (to whom the domain has to be transferred) must apply for the domain at a registrar.

This can be a document-based application or a confirmation procedure-based application. In order to facilitate and speed up the settlement of eventual future disputes, the registrant can also send the transfer declaration document referred to at point 1. to the registrar.

The registrar submits the request and the transfer declaration, if any, to the Registry. If the request meets the conditions of the Policy, the Registry will carry out the confirmation procedure with the original user, during which the user may approve or even refuse the transfer.

If the new registrant has requested the domain with a confirmation procedure, the Registry will also carry out the confirmation procedure with the new user.

If, during a transfer process, the transferor authorizes the transfer through a confirmation procedure, no further transfer of that domain may be initiated for a period of 30 days thereafter. This is so that if a domain is misused, its registrant will not be able to ‘disappear’ with quick chain transfers.

Possible disputes regarding the transfer of a domain registered under the confirmation procedure

1. If the original registrant neither approves nor rejects the transfer and the new applicant has submitted the transfer declaration, the domain will be delegated to the new applicant within 14 days.
2. If the transfer is rejected by the original registrant, the new applicant will only be able to obtain the domain if he or she applies to the Registration Decision Maker or the court. In the case of a domain registered on the basis of a confirmation procedure, an important security element is that the registrant (the one who has control over the factors) can prevent a potentially unwanted transfer (stealing the domain) with the help of these factors, e.g. with false documents.
3. For a domain registered under a confirmation procedure, after the transfer (i.e., after the transfer has been approved with a confirmation procedure), the former registrant may notice that the transfer was done against their will, i.e., someone abused a factor.
   
   In this case, they have 30 days to file a complaint with a registrar and reclaim the right of use of the domain. They must indicate in the complaint that the transfer was made in the absence of their will, abusing a factor. The complaint can be accepted by any registrar, but the registrar of the domain is bound to do it. If the transfer took place together with a change of registrar, the previous registrar of the domain must also accept the complaint.
   
   The acting registrar must ask the new registrant to submit the transfer declaration within 5 working days. If the new regsitrant does not send the transfer deed to the registrar handling the complaint despite the appeal, the Registry restores the original condition prior to the transfer and registers a 30 days transfer ban on the domain.
   
   The former registrant may request the initiation of an alternative dispute resolution procedure with the Consulting Board within 30 days from the date of dispatch of the transfer document to the registrar.
   The new registrant may request the initiation of an alternative dispute resolution procedure with the Consulting Board within 30 days from the date of restoration of the original status. The transfer restriction registered to the domain will be extended for the whole duration of the dispute procedure.

We list below the different possible cases, but they have in common that:

• the change must be notified to the registrar
• in the case of a document-based registered domain (all domains registered before 01.07.2020 are such) a document supporting the change (see below) and a new application form must be sent to the registrar (the latter is not required in case of transformation), then the change is registered in the register.
• in case of a confirmation procedure-based registered domain, the change is recorded in the register by the registrar, after which the Registry initiates the appropriate confirmation procedure with the registrant.

1. Succession cases for a legal entity registrant

• Transformation (eg change of company form), when a company becomes one company – this is a simple change of data, which should be reported to the registrar as soon as possible.
• Merger or fusion, when two or several companies become a single company – in this case, the new company needs to enter into a new domain maintenance contract with a registrar (either the current one or another).
• Spin-off, when a company has several successors – in this case, the successor company needs to enter into a new domain maintenance contract with a registrar for the use of the domain name. In the case of a document-based registered domain, it is necessary to send the registrar a duly signed declaration in which the official representative of the company declares on behalf of the company that he is the legal successor with regard to the right of use of the domain.
• A sole proprietor transfers the right of use of the domain to himself as an individual – the Registry also treats this as a legal succession, and this is also a simple change of data, which should be reported to the registrar. After the change, the sole proprietors will no longer be able to post the domain invoice, and their data will not be displayed in the domain finder (whois).

2. Typical cases of succession in the case of natural persons

• A natural person transfers the right of use of a domain to himself as a sole proprietor – the Registry also treats this as a legal succession, and this is also a simple change of data, which should be reported to the registrar. After the change, the sole proprietors will be able to post the domain invoice, and their data will be displayed in the domain search engine (.hu whois).

• Inheritance – in this case, the heir of the right of use of the domain needs to enter into a new domain maintenance contract with a registrar.
  In the case of a private document providing conclusive evidence, that he os she has agreed with the other heirs and he is the heir to the domain. The Registry registers a single registrant.

Sometimes a company or other legal entity (eg association, foundation) is terminated without a legal successor and deleted from the company or other register related to it. However, the .hu domain names registered by it remain in the official domain register in its name, because the actual user did not ensure that the data in the register was accurate. This can happen in several ways. Eg. the domain may have been registered in its own name by someone else (ie. a website developer) on behalf of the actual registrant.

It is also possible that the registrant transferred the domain before its termination to someone else who did not request updating data in the registry . It may also happen that another company of the owner of the official registrant uses the domain without it being properly transferred.

It is very important that the name and other details of the official registrant are accurate, because the domain can actually be controlled by the registered registrant. It is particularly important that the domain of a legal entity that has been terminated without a legal successor be resolved as soon as possible.

In case the Registry notices that a registrant has been deleted on a final and binding basis without a legal successor, it will notify the registrar(s) of the domain(s). The registrar has 30 days to settle the situation (see details below), during which time even the procedure described in Section 6.3.3 may be carried out. If the settlement of the situation fails, the registrar is obliged to record the fact of termination of the contract in the register. If the registrar does not record the fact of termination of the contract in the register by the end of the 30th day, the registrar shall do so.

As a result, deadlines come into effect for the data to be put in order, beyond which the domain is ultimately deleted, so that it can be re-registered by anyone.

If someone uses such a domain, the registrant of which has been terminated without a legal successor and deleted from the register, there are two procedures according to the Domain Registration Policy:

1. If the domain user has been using the domain continuously since the legal deletion of the registrant, than with the an appropriate declaration the user can register the domain in their own name with the help of the registrar.
2. If the domain user can prove that the domain was originally applied for on their behalf or solely for their benefit or use, than with the appropriate documents the user can register the domain in their own name with the help of the registrar.