Is it possible to consign NFA items for sale at a dealer if those items are not in the dealers inventory?

Example: seller wants to consign a transferable MG at dealers shop.  Does the dealer need to take possession of the MG on a form 3, then offer the item for sale?

Bonus question: Buyer is an 07/02SOT, seller is an individual.  Would the seller need to transfer the NFA item to the shop before the shop can have possession of the item at there premise?

And how does that go for repairs of NFA items too.  Say an owner of an MG sends it to an SOT for repairs, does the shop have to be listed on the paperwork to have it in their shop?

Yes on transfer if in physical possession for resale.

The F5 "repair" is playing loose and fast with the rules.....I don't want to be the next "Larry Vicker's moment" for a couple hundred dollars in consignment fees.

Your local dealer can always post pictures and broker the deal.

18Z50....Never invite the man into your life.

"Brokering" is pretty common. Seller retains item, FFL advertises it for sale and assists with all the paperwork between the involved parties for a fee. Transferring on a form 4 to the dealer in preparation for sale is usually the smartest way to do it though. The gun being available for immediate form 3 transfer is a big plus to buyers in other states and you'll likely be able to ask a little more for it.

Sending a NFA item in for repairs is no different than any other firearm. No ATF paperwork is needed. See here: https://www.atf.gov/firearms/docs/repair-nfa-firearms

No, transfer would be on a Form 4.  Form 3 is only used between two SOT's.


Yes, which is why most FFL/SOT's broker rather than consign Title II firearms as described above.


No, gunsmithing laws are the same for both Title I and Title II firearms.

One thing not mentioned so far is this:  When an FFL sells an MG for client, the amount of money they will get for the sale will normally be much higher if the item is first transferred to the seller's FFL under a Form 4, because out of state buyers would have to wait for two Form 4's and one Form 3 before receiving the item.  Now in-state buyers just need a single Form 4 from seller to buyer.  That's why you will often see MG sales listed as "Under a Form 3" or "On a Form 3" so out-of-state buyers will know their FFL can quickly get the item under a Form 3 transfer.