General PPT transfer question, when money exchanges hands

[CA35]

Not sure if this is the right place to post, but as this is the FFL forum, i figure it will be the best place to start. by the experts.

My questions is pretty basic, having never done a PPT before.

What are the A B C's of PPT'ing?

DROS cost aside. what is the usual rundown? After i find a buyer, if i am selling, we both go to the FFL, I hand over the firearm to the FFL, the buyer and FFL fill out the forms, and he or she pays for the DROS? is that it? What assurance do i have with regards to my firearm? Not to sound horrible, but when do I get paid, at the time of the DROS'ing from the buyer? What if the buyer's BG check doesn't go though, what then about the money and the waepon?

Any light on this would help immensely.

thank you

[ke6guj]

If I am selling a gun, I am getting paid by the buyer before the firearm is handed over to the FFL to do the paperwork. some FFLs will let you do the inspection inside the store and exchange money. other FFLs want everything done outside, no inside inspection or payment.

if the buyer's BG check fails, CADOJ automatically does a BG check on me and if I pass, CADOJ tells the FFL to return the firearm back to me immediately.

at that point, it is between me and the buyer to get back his money. the FFL is not involved in that.

some sellers will want a "restocking fee" , "cancelation fee" or "hassle fee" if a prohibited buyer wastes their time in such a folly. sometimes the firearm is only sold because the seller needed the money right now and it is already spent before the BG check comes back. so, at that point, you have your gun back but don't have the money to pay the buyer back.

[ugimports]

If I am selling a gun, I am getting paid by the buyer before the firearm is handed over to the FFL to do the paperwork. some FFLs will let you do the inspection inside the store and exchange money. other FFLs want everything done outside, no inside inspection or payment.

if the buyer's BG check fails, CADOJ automatically does a BG check on me and if I pass, CADOJ tells the FFL to return the firearm back to me immediately.

at that point, it is between me and the buyer to get back his money. the FFL is not involved in that.

some sellers will want a "restocking fee" , "cancelation fee" or "hassle fee" if a prohibited buyer wastes their time in such a folly. sometimes the firearm is only sold because the seller needed the money right now and it is already spent before the BG check comes back. so, at that point, you have your gun back but don't have the money to pay the buyer back.

As a seller I write up a simple bill of sale stating the terms. When I've sold a few personal guns via PPT I actually write in that the buyer will get no refund should they fail DROS or fail to pick up in 30 days (both result in returned firearm to me).

This puts the onus on them to pass or pick up on time and loss of money if they don't. If they fail to pick up I'd probably charge them for me to take the trip down to the FFL again.

I bring 2 copies. We both sign/date each and each keep a copy. I've not had anyone not sign it yet in the few personal sales I've done.

Most serious gun enthusiasts really have no issue signing since they already own guns and will pass DROS and will pick up. I would be worried if someone wasn't willing to sign since it would probably mean they are not sure if they will pass DROS. That might make me back out of a deal.

[acespawnshop]

Another thing to mention is should the be denied the FFL must return the firearm to you. I would agree that your bill of sale should state what should happen should they fail the DROS. Something you both agree on. I would imagine that even with a signed bill of sale a court would not agree that you can keep both the firearm and the money should the buyer fail his DROS. But something like a percentage or flat rate for your time would be ok. Turners charges 35% restocking fee on canceled or failed DROS, and so do we. This would seem to be a little more equitable than keeping 100% of their funds and the firearm.

[ugimports]

What I do at my store is different then a PPT. At the store we only do 25% restocking on a failed DROS.

For a personal transaction/PPT for something that I'm selling because I don't want it's a big hassle for me to re-list and re-sell it. Plus travel, schedules, etc. I'm more than happy to negotiate that rate with a buyer on the spot, but it hasn't come up yet. The buyers I've sold to personally have all been seasoned enthusiasts with not a worry about failing DROS.

[keenkeen]

Another thing to mention is should the be denied the FFL must return the firearm to you. I would agree that your bill of sale should state what should happen should they fail the DROS. Something you both agree on. I would imagine that even with a signed bill of sale a court would not agree that you can keep both the firearm and the money should the buyer fail his DROS. But something like a percentage or flat rate for your time would be ok. Turners charges 35% restocking fee on canceled or failed DROS, and so do we. This would seem to be a little more equitable than keeping 100% of their funds and the firearm.

And a lot less equitable than taking a reasonable restocking fee that covered an amount closer to your true damages.

[acespawnshop]

See that's the thing right there UG, you can tell right away if a deal is shady or on the level. Most people who are buying on CG or elsewhere and want to meet at a LGS to do a PPT are seasoned gun enthusiasts like you said. I've never thought twice about a deal going bad on the few guns I did a PPT on. I think the OP should have peace of mind about his upcoming sale. Nothing to worry about, PPTs happen all day long here in the DPRK.

[acespawnshop]

Another thought. Maybe in the contract you can state that should buyer fail the DROS the firearm will be relisted for sale and the buyer who failed DROS will only be paid after the new purchaser pays for it and something like 1/2 of the future sales price will be remitted to the failed purchaser.

[Chewy65]

You need to be clear on what you mean by failing DROS and coordinate with the FFL as to what happens if the buyer is placed on delay and eventually goes to undetermined. Will the FFL deliver to buyer. If not, FFL must return the firearm to the seller unless they are prohibited persons, I believe.