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What actually happens when I transfer my domain name out of another Registrar to SingNet?

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What actually happens when I transfer my domain name out of another Registrar to SingNet?

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3A. Upon receipt of your domain name application, we will submit the domain transfer request to SGNIC for approval. Upon SGNIC’s approval of the domain transfer, SingNet will be the registrar of record for your domain name. Your domain registration term will also be extended by 1 year or 2 years (depending on the plan selected during application).

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