1) There is no option for a refund after domain name registration
Typically, if you buy a domain name and find out that it’s not the one that suits your business model; the registrar cannot refund your money. Instead, you’ll have to find ways to sell that domain yourself. You can sell the domain on a domain auction site like GoDaddy or list it on a domain reseller site like Namecheap.
2) After domain name registration, your domain details become publicly available on the WHOIS directory
When registering a domain name, the registrar will require you to supply personal details such as name, phone number, email address, physical address and much more. This information will then be listed in the WHOIS database and made available to the public. That means anybody who knows your domain name can go to the WHOIS directory and get your domain name details. This can be risky, especially if there are spam harvesters or prying eyes around. However, the registrar can make your domain name details private. Some registrars charge for this service while others don’t. Regardless of whether they charge or not, it’s wise to initiate privacy protection for your domain name to keep people with bad intentions at bay.
3) It can be daunting to prove your rights if you sign up for Domain Privacy Protection during Domain name registration when your registrar goes out of business
It’s important to note this point when choosing a registrar to register your domain name. Choose established registrars who have been in the domain business long enough to prevent such inconveniences. A number of registrars guard their customers’ privacy in case they close shop by storing their data on third party servers such as Escrow.
4) If a trademark-oriented dispute manifests when you buy a domain name, you could lose your domain name
Let’s face it; domain trademark issues occur online unknowingly. But they can be settled by agreement, arbitration or court action before a registrar takes any step to cancel, transfer or suspend a domain name. You can check insights about domain name trademark issues on the ICANN website to prevent the possibilities of infringing on domain name trademark laws and how you can resolve disputes if you become a statistic.
5) You legally own the domain name after domain name registration for as long as you renew it and pay the relevant fees
If you fail to renew your domain name after the expiry date, the registrar will allow you a grace period (usually 42 days) to renew the domain name. If you fail to renew the domain name after the grace period, the registrar adds you another 30 days (called redemption grace period) to renew the domain name. However, late renewal will come with a penalty. If the redemption grace period expires, you lose ownership of the domain name. The domain name is then made available for someone else to buy.