Managing Mission:Critical Domains and DNS
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RGP – Registrant Grace Period (up to 45 days)

For the next 35 or 40 days, or maybe 45 (yes, it's that inexact, the registrar can do this next step at any time), the domain is in a state called the registrant grace period (RGP).

During this period the domain can be renewed "normally." For example, if this is a non-production domain, nobody had noticed it had expired, then after a couple weeks you find your renewal notice and renew the domain, then the domain gets renewed like any other renewal. It just starts working again and everything reverts back to normal.

But at any time during the RGP, the registrar may also "direct transfer" your domain to another party. They can do this because your rights terminated back on "day 0," the day the domain expired. This is a grace period, and toward the end of the grace period, the registrar will reserve the right to move this domain off to auction, or to sell it directly to another end user.

Domains in this state can still be transferred by the registrant to another registrar (thus triggering a renewal in the process)—however, not all registrars allow it.