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thisismyboomstick

Example MG sale contract

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Can anyone point me towards a good contract template for the sale of a transferable MG?  I have been shopping around for a little while and am getting closer to pulling the trigger on my first one and would like to be prepared.  Elements that I’d like it to cover are:  

payment terms (50/50 and 100% up front)

Acknowledgement of payments received 

guarantee of MG transferability 

penalty for backing out of sale

notification to seller’s heirs of pending sale

???
 

I was curious if there is something out there that is already a good starting point instead of trying to draw one up from scratch.  

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Over the years, I've bought 40+ fully transferable machineguns from private individuals to big volume dealers.  Here are my experiences:   

1)  Most sellers want 100% of the funds up front - but some will do 50% up front and then the other 50% when ATF approval is obtained. 

2)  Written acknowledgements are usually done by email (and less frequently text).  Some sellers will telephone, but I usually ask for a confirmatory email because that gets the deal "in writing".   Many sellers will not send a receipt unless asked to do so. 

3)  Guarantee of transferability - vet the seller extensively.  Ask for proof of life photos and references.  Don't send any money until you are satisfied that the seller is trustworthy and legitimate.       

4)  Penalty for backing out of a sale - I've heard of it - but good luck with that.  Just get your money back and look elsewhere.  Heck, if you are that worried about the seller/buyer then don't even consider doing business with them in the first place. 

5)  Most deals are done on a verbal agreement between buyer and seller.  

6)  Buying a machinegun from a private individual unknown to you can be risky but very good deals can sometimes be had.

7)  Buying a machinegun from a dealer (especially a well known dealer) is much less risky because they depend so much on their reputation for their continued business.  However, the price will likely be higher.

8)  I'm not sure what you mean by notification of seller's heirs of pending sale.  Unless, you mean that the seller dies before they ship the gun to you or your NFA dealer.  I have never had this happen but I suppose it could be a problem if the decedent were a sole proprietor dealer or private individual.  However, machine gun sales are a private matter and I believe that most people would prefer to be discreet and not tell anyone else about the deal.

9)  For really rare/high dollar machineguns, I fly in to inspect the firearm before sending any money. If the seller declines to meet face to face, walk away from the deal.  

10)  Finally, if it seems to good to be true -- such as a rare or very high dollar item priced for quick sale way below fair market value -- it usually is.    

I hope this helps.

 

 

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  • 8)  I'm not sure what you mean by notification of seller's heirs of pending sale.  Unless, you mean that the seller dies before they ship the gun to you or your NFA dealer.  I have never had this happen but I suppose it could be a problem if the decedent were a sole proprietor dealer or private individual.  However, machine gun sales are a private matter and I believe that most people would prefer to be discreet and not tell anyone else about the deal.

Some rare MGs are owned by older guys who have a real probability of dying before a C&R transfer (1 year!) is complete.  For this reason I have on occasion decide to transfer the gun quickly (1 month) to a dealer near me instead of going for the direct C&R transfer. 

 

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My advice is to simply buy it from a well known and respected dealer. Might be a bit higher, but the peace of mind is worth it. Ive bought many from good dealers with absolutely no problems. On the other hand, ive had many problems buying from individuals. Have not been ripped off yet, mostly the problems were lack of communication, sloooww shipping and item no where near what was described. 

I look at it this way, for the little extra you pay a good dealer is way cheaper than losing thousands for a supposed deal. There are many many scammers and crooks out there. Why take a chance? 

 

 

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The offerings I have most seriously been considering are usually in state from an individual seller.  So my thought process was somewhat biased toward that scenario.  Although a good deal out of state is also a possibility.

 The MG’s I am interested are pretty run of the mill.  RR Uzi, M16, or maybe an HK sear.  I’m new to this so just trying to do my homework and not make a mis-step.  The concern with transferability was mainly raised by the recent posting about the guy getting shafted on a Thompson.  Wouldn’t have really thought of that otherwise.  
 

HHollow pretty much summed up my concern with notifying heirs.  It seems in general the lions share of MGs are owned by guys that are getting up in age, and with the length of time it takes to get approval, a seller passing while the transfer is pending seems like a real possibility that could cause some headaches.  Would anyone know to check the seller’s mail once in awhile for the approved form 4?  What would happen if the heirs ask a dealer or auction co to help liquidate a collection without knowing that one was already sold?  
 

The penalty for backing out would mostly be to protect the seller in a 50/50 type deal.  I wasn’t necessarily looking for a contract that would be totally one sided, but fair for both buyer and seller.  

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