I register, design, and host for almost all of my clients. I haven't had a problem yet. If someone wants to transfer their site to another host I gladly comply. It is easier for me to register the domain so I don't have to go through the hassles of transferring. They are listed as owner of the domain with me being the technical contact. No ownership issues arise. I just find that it's easier for me and the client if I can provide all three services. Of course, I'm a good guy and wouldn't hold anyone's site hostage.
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