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A domain I own with a registrar is expiring next month. I want to change registrar. Is there a way of changing registrar exactly on expiration date or the only way is to start (and pay) the transfer procedure? I don't want to let the domain expire even for few minutes.

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No, that's not possible. There's a good explanation on this comment by Zhaph - Ben Duguid

"... this is because for some domains the current registrar needs to say "this domain can be moved" and then the second registrar has up to a month to say "yes, hand it over".

The thing to do is to renew the domain and then once the date is passed when it would have expired, to transfer to the new registrar. You probably won't get a refund from the first registrar.

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Cheers for the credit Paul :) I believe that you should be be able to transfer the domain as soon as the renewal's been processed - so if you renewed it today for a year, the expiry should be updated to August 2013, and once that's on the record you can transfer it. Also while you won't get a refund, your domain will still be registered until that date, so it's not as if you've lost the money... – Zhaph - Ben Duguid Jul 24 '12 at 12:37

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