Getting @%#&^)% on a 50/50 payment

[har1690]

I have seen sellers thru the years offer a 50/50 payment option on these expensive MG toys. While I get that can be attractive to some buyers, but what happens when the Form 4 is approved, and the buyer just doesn't have the balance?

[brennon272]

Seller keeps the deposit. I usually give people two weeks from the time I send them a picture of the form. In my experience, if they don’t have the money they just stop responding. 

[abody71]

But legally the item is in their name. 

[har1690]

Sooooo how does the transfer take place? Assuming the buyer disappears my question is now the item is in ones name how do you cancel the transfer and/or what happens to the $200 sheets? And how /why would the ATF cancel once all the work that they have done (not much).

[Uncle Zeek]

Wouldn't you just void the form 4?   I remember reading about the procedure last year.

[SGT Fish]

You just contact the ATF and tell them to cancel/void the form 4. Tell them the buyer backed out. It happens. 

 

With the fast approval times we have now, it shouldn't be as much of an issue as people's financial situations have less time to change

[Frank I]

Transfer can be cancelled as long as the transferee hasn't taken possession of the firearm.

I quit doing 50/50 payments, too many customers back out of the deal, and I have heard every excuse you could imagine.

 

 

Edited April 19 by Frank I

[MPFiveO]

With the quick turnaround times hardly anyone does 50/50 anymore. I know machine guns are more expensive and can still take up to a year on a paper Form 4 but doing 50/50 on that is still risky from a business standpoint. Sure, you can keep some or all of the initial deposit if things go sideways, but then you have to send the Form back to the ATF and have the transfer cancelled. Then you have to wait for the refund of the $200 stamp. Meanwhile, you have to list the item for sale again and hope the next buyer sticks to the agreement. I don't even think I'd consider doing a 50/50 deal in today's world. It probably worked great in the past but things have evolved and changed a lot in the past decade or so.

[Thumpy]

You can always cancel as long as they haven’t picked the weapon up. Just call the atf as said above.

50/50 deals now adays I feel like are based on reputation. I’ve bought and sold a few guns like that. Every gun I’ve ever bought like that I was told “50% is non refundable” etc 

if the gun is “incoming on a form 4” it may take several months so I still think 50/50 deals have there place.

I’ve sold guns like that to people I know / have mutual friends etc

The NFA world is a small place the machine gun world is even smaller so always ask around chances are you know some one who knows them.

 

[Grasshopper]

Hi All,

The thread is a little stale but here's my $.02 worth:

Put it in writing.  Make sure both parties understand the transaction and try to cover likely contingencies. 

I do 50/50 all the time.  Even 0/100 for friends.  For the buyer it makes sure the seller submits the transfer.  It also reduces the exposure of the buyer.  For new buyers sending funds of significant value is something they are not accustom to.  As  the seller I also write up (in the terms of sale) a penalty for failure to pay the balance within XX days of notification that the transfer has been approved by BATF.  I've also added weasel clauses for death (of either party) or bonafied loss of employment.

Back to the OP - As others have mentioned: if the physical transfer of the firearm has not taken place the seller can cancel the transfer.  I've done it several times.  I don't give a reason for the void of the transfer.  The $200 goes back to whoever payed the tax.

Enjoy,

Grasshopper

[Don.]

On 4/18/2025 at 7:35 PM, Frank I said:

Transfer can be cancelled as long as the transferee hasn't taken possession of the firearm.

I quit doing 50/50 payments, too many customers back out of the deal, and I have heard every excuse you could imagine.

 

 

Have you gotten the “I need an emergency vasectomy reversal” yet?  If not, that’s the one I would want to use, LOL!