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Problem with renewal vs transfer

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I bought a batch of names a while back, but going to renew some of them (which had "mysteriously" expired - I say mysteriously because suddenly they were a couple of months overdue) I got the following error message
Error message description: V174

So it looks like the sequence could be something like this:-

1) Tag holder's domain expires and is auto-renewed by Nominet
2) Tag holder sells domain and transfers it
3) Invoice for renewal becomes due but tag holder ignores it (because the domain's already been transferred away)
4) 30 days after 3), the renewal is cancelled and the domain suddenly enters expiry (with the expiration date reset to what it would have been had the renewal attempt never been made)
5) The new owner is blocked from renewing the domain which he now owns, because of the outstanding prior invoice

Looks like an accidental loophole in the Nominet billing/transfer system which hopefully will get fixed at some point.

I'm busy sorting it out for this transaction, and I don't anticipate any problems, but I wanted to post this here as a note of warning, so that nobody else gets themselves into a Catch-22 with renewal/sale transactions.
 
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