If someone remembers there was a thread in which A buyer had charged back through PayPal after getting the domain transferred, which meant the domain was in fact stolen. So what are the best practices that one must follow to safeguard one from such Anomalies. Most of us do use PayPal for transactions.

Some people use Escrow services to avoid such fraudulent transactions.

Simple. Make sure the person you are selling to provides references. By this I mean check their ranking, past purchases/sales, get information from other people. It's all about research.

Using a third party escrow provider is the best option..however their fees are quite high..

I'm hearing that Escrow.com isn't 100% safe. That's because Escrow.com doesn't actually get involved in the transfer of the domain. So, the buyer can change to whois data to make it look like he never received the domain.

If it's a high enough value domain, it may be worth doing Escrow through Sedo or Moniker. Both of these companies actually take possession of the domain to ensure that the transfer between buyer and seller takes place.

There is a much BETTER escrow service which is run by people who understand domains, www.escrowdns.com DG

Yes, I've been wanting to give EscrowDNS a try, but non-domainers aren't really comfortable with it. But I'm hearing really good reviews from many people about EscrowDNS' services.

Well it has got to be safer than escrow.com .
EscrowDNS.com is safe .

DG

have tried sedo's escrow services myself..and I can vouch for it..pretty safe..

I too have tried sedo's escrow services and I have done it atleast a dozen times. Its pretty safe and I never had a bad experience. Once a buyer had tried to be over smart but sedo took care of him.