Transferring domain between accounts

This is such a simple question I'm embarrassed to ask it. I've been hosting a domain and would like to transfer responsibility for it to someone else - totally. The person who will take over is also a DH customer. DNS for the domain already points to DH nameservers. Can my friend just replicate the domain directory in his account and add it as a fully hosted domain? What will happen during any period of overlap if we both claim to 'be' the domain? Must I delete the domain totally from my account before he will be allowed to set a domain of the same name as 'fully hosted'? The goal of course is to minimize downtime for the domain, while getting it off my account and into his.

Our system won't allow two people to be hosting the same domain at the same time. If you delete the domain the other person will be able to add it. There would be some downtime involved with that as it will most likely be put onto a different set of servers and DNS would have to update.

- Dallas
- DreamHost Head Honcho/Founder