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You should never transfer a domain to the host, then they control it and can keep it, don't do that. And yes it's normal to pay for hosting but you shouldn't have to transfer the domain, EVER. Just update the DNS and if they don't support that, find another host. Transferring is free if it's within the same registrar to another user, or else you usually have to pay another year at the new place to transfer it.
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