Question about buying guns from a former ffl.

[mpan72]

If a person is a FORMER ffl holder what are the laws on buying guns from him.

If you buy a rifle from leftover inventory do you have to go to a ffl holder for transfer?

What if the gun was from his personal collection?

Lets say all parties are Pa. residents with no prohibitions.

[markshere2]

FTF long gun sales are legal in PA.
Handguns must go through a FFL.

Seller can be current FFL, former FFL , little green martian than moved to PA and had a DL and LTCF .... no difference.
If I'm wrong I'll get corrected VERY shortly.

[mpan72]

FTF long gun sales are legal in PA.
Handguns must go through a FFL.

Seller can be current FFL, former FFL , little green martian than moved to PA and had a DL and LTCF .... no difference.
If I'm wrong I'll get corrected VERY shortly.

Do you have to have a pics check when buying a rifle that was part of his inventory?

[Marcus99]

FTF long gun sales are legal in PA.
Handguns must go through a FFL.

Seller can be current FFL, former FFL , little green martian than moved to PA and had a DL and LTCF .... no difference.
If I'm wrong I'll get corrected VERY shortly.

They run a PICS check if you buy a rifle from a current FFL.


I'm not sure of the legality but FFL's I believe are required to record their inventory in a bound book and must removed firearms from said book when they are sold to a customer. If it's a former FFL I would think that there would be some requirements to have the inventory transferred from the FFL bound book to the individual person

[mpan72]

They run a PICS check if you buy a rifle from a current FFL.


I'm not sure of the legality but FFL's I believe are required to record their inventory in a bound book and must removed firearms from said book when they are sold to a customer. If it's a former FFL I would think that there would be some requirements to have the inventory transferred from the FFL bound book to the individual person

That is what I am most curious about. What happens to the inventory, does it become the individuals private collection? I would assume it does not because I am sure there could be a lot of guns involved. The guns from the inventory would still be sold purposely for profit in most situations and I believe that is illegal.

[Marcus99]

I'm not sure about Mom & Pop type FFL's but I know larger ones usually sell off their bulk inventory, often to the highest bidder. My wife got a great deal on a "used" rifle at Cabelas which was part of a former dealers inventory. The rifle was brand new in the box but for whatever reason they were not allowed to sell them as new guns because they had been bought from another dealer.

[mpan72]

I see some confusing text about transferring guns from a ffl holders inventory to his personal inventory in the U.S. code. It looks like after one year it is possible to sell as if he were not a ffl holder. I could not find anything about the ffl giving up his license though.

[SteveWag]

When an FFL goes out of business or forfeits the license, all firearms, long and short, become his/her personnel property, and all other things being equal, he/she is just a PA resident and all transfers are handled the same as two guys meeting in a Walmart parking lot. Long guns are F-to-F, handguns are through a Dealer. If an FFL dies, the License MAY continue for 6 mo. so the Estate or Executor can still do transfers if desired.
Steve

[WCMG]

If the FFL is held by an individual, the firearms become property of that person's estate. If the FFL is held by an Corp, then nothing changes concerning ownership. If an individual FFL dies, the FFL can continue to operate until it expires as outlined in this ATF Newsletter.

https://www.atf.gov/firearms/docs/ne...-2012/download

[Xringshooter]

That is what I am most curious about. What happens to the inventory, does it become the individuals private collection? I would assume it does not because I am sure there could be a lot of guns involved. The guns from the inventory would still be sold purposely for profit in most situations and I believe that is illegal.

A FFL that is a sole proprietor can transfer any of the business guns to himself at any time, perfectly legal. By law, he can only sell them as personal property after he has "owned" them for 1 year or longer. If owned less than a year, he must transfer them back into the business and sell them like any other business asset. Firearms transferred to personal ownership, after one year, can be sold legally just like any non-FFL would, long arms can be sold FTF but handguns still have to go through a FFL with the PICS check (and he can be the FFL). I don't know too many FFLs that transfer a gun to their personal collection just to hold it for a year to then sell, but it can be done for whatever their reason may be.

If a FFL is a sole proprietor, and dies, the business inventory is considered part of his estate but the executor of the estate can keep the license active to facilitate the disposal of assets, the BATFE will advise the executor on what all is needed to be done in this circumstance.

If the FFL is a corporation, even if a one person corporation, then the FFL can still transfer any gun to himself, but he has to do the 4473 and background check just like any non-FFL buyer because the corporation is the one transferring the gun. Many will ask why a single person would form the corporation. It is for liability reasons, forming a corporation protects the individuals' personal assets in case of a lawsuit. As a sole proprietor, a person could lose everything they own (house, car, savings, etc.) if they are sued and lose the case. If the same suit affects a corporation, what can be taken is the corporations assets (inventory, tools, anything in the corporations name, etc.).