How to Transfer a Domain Name From Microsoft Office Live
After you have registered a domain with a domain registrar, that domain is yours as long as you pay the annual fees. In the case of Microsoft Office Live, you allowed it to register the domain for you, but it is still your domain even though it may have been free to begin with. You will need to go through several steps to move the domain, but after you have taken control of it back from Microsoft, you can move it as often as you like after a 60-day waiting period.
Instructions
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Log onto your Microsoft Office Live account and click on "More" at the top, and then click on "Domain Manager." Click on "Add/Manage Services" on the left and select "Websites and Domains." Scroll to "Domains" and click on "Cancel." You have now canceled your domain at Microsoft Office Live.
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Open the email you will receive from Microsoft confirming the cancellation. This will contain a registry key along with instructions to manage your domain at Melbourne IT. You can use any Internet registrar at this point to take control of your domain and transfer it to another host (see Resources), but it is easier to use Melbourne IT. It already has all the information because this is the registrar that Microsoft uses for its Office Live domains. If you choose a different registrar, you will need to include the registry key in the request. You may also need to contact Melbourne IT directly to have it unlock the domain if Microsoft did not do so.
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Direct your browser to the Melbourne IT website (see Resources) or hosting service of your choice. Click on "My Account" and then "New Account" to create a new account. Enter the information requested to create an account.
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Go to the home page and click on "Transfer Domain Name" on the right panel. Skip the domain name details and click on the "Have Your Domain Name Managed by Melbourne IT Directly" link at the bottom. Enter the domain name and the domain registry key you received from Microsoft.
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Enter the information requested to transfer direct control of the domain to Melbourne IT with your name and information as the registrant. Depending on instructions you receive from your host or who will be managing the domain, you will need to fill in the info on the Administrative, Technical and Billing tabs. Under the DNS section, enter the name servers provided by your new host. You now have complete control over your domain name.
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Tips & Warnings
You can transfer control away from Microsoft and just "park" the domain until you decide where to move it to, but it is simpler to open an account with a new host before transferring the domain.
Make sure you enter a valid email address and maintain it at whatever registrar you choose. If you forget and allow the domain to expire, someone else can claim it and it will be lost to you.