An escrow service may be the chosen method used to transfer payment from the Buyer to the Seller. An escrow service reduces the potential risk of fraud by acting as a trusted third party that collects, holds, and then subsequently releases funds according to the Buyer and Seller instructions per their agreement.
The Buyer and Seller agree to the terms of the sale. This will typically include a brief description of the domain name, sale price, number of days for the Buyer's inspection, and any transfer details (registrar, etc.).
The Buyer transfers the money to the escrow company. The processing time of this step my vary depending on the payment method that is chosen. If the Buyer has chosen to "pull" the domain over to their registrar (if different from the current registrar), they should then initiate a transfer at their registrar.
The Seller transfers the domain name. Once the Seller is verified that the payment is clear they should begin to prepare the domain for transfer, which includes unlocking the domain. The Seller should also receive Transaction and Security Codes or ID's from their registrar which should be forwarded onto the Buyer.
The Buyer accepts the domain transfer. Once the Buyer has received the Transaction and Security Codes from the Seller they can proceed to complete the domain transfer at their registrar. Per the Buyer and Seller Agreement the Buyer has a set number of days to confirm the purchase and then accept the domain.
The Escrow Service pays the Seller. Once the Buyer has accepted the domain the escrow service will release the funds to the Seller and the transaction is complete.
for more details about Escrow.com process.