Hostgator Questions : Transferring domain name from someone else

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For Hostgator FAQ or any questions about hostgator webhosting or hostgator sales read this query posted by crazyfool on 21 May 2008

I just signed up with Hostgator

I agreed to buy a domain name from a small company for 1k. The company seems relatively unknown (they have no reviews/info on Google.) I’ve never bought a domain name from someone else before.

1. Are there any important steps in transferring a domain name?
2. The company is asking the payment first. Can Hostgator (or some other inexpensive escrow method) help in ensuring I wont get cheated?

Any help/info would be greatly appreciated..

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