We experienced a problem today when one of our clients transferred their domain from a Network Solutions account to *their* GoDaddy account.
We were already hosting the DNS under our own GoDaddy account. Upon successful transfer, the domain received new nameservers and default DNS records. Additionally, the DNS hosting entry in our account is no longer functioning (can't view records, trying to remove it says "There was an error processing your request. Please try again. If this issue continues, contact support.")
Ideally, this process would provide the domain owner the option of importing the DNS records from our account upon transfer.
This is not a fault. The same rules apply moving a domain 2 Foot away to a different server, as 200 miles away to a different server!
It makes no difference that it is also a godaddy server it is moving too. And importing DNS records wouldn't be such a great idea......... if you think it through?
"Necessity is the mother of invention, laziness the father of contention."
I have thought it through. In this case, the domain was already using GoDaddy's nameservers before being transferred. It makes sense to me that upon transfer the domain would be able to continue using the same zone as before the transfer. This is what happens when I transfer domains into my own account. The same logic holds true even if transferring to a *different* account.
This does not pose a security risk - although I might expect that the ability to manage DNS for that domain be moved to the new account.
That said, I didn't actually execute the transfer... it is possible that the domain owner in this case chose to "Use default nameservers" instead of "Keep existing nameservers". Maybe it *does* work like I've proposed.