Private Party Sales: What's Legal?

Private party firearm sales — transactions between two non-licensed individuals — are legal under federal law in many circumstances, but are increasingly subject to state restrictions. This guide covers the federal framework and key state variations.

Federal rules for private party transfers

Federal law does not require a background check for a private party sale between two residents of the same state (with some exceptions). However, it prohibits the seller from transferring a firearm to someone they have 'reasonable cause to believe' is a prohibited person.

Interstate private party transfers require FFL involvement — you cannot legally mail a firearm directly to a person in another state, and a private buyer cannot travel to another state specifically to purchase a firearm and bring it home without going through an FFL.

The 'gun show loophole' — what it is and isn't

The so-called 'gun show loophole' refers to the fact that private party sellers at gun shows don't need to conduct NICS checks under federal law (unlike licensed dealers, who do). However, this applies to private sales in general — gun shows are not uniquely exempt. Many states have closed this with universal background check laws.

The straw purchase problem

A straw purchase is when someone buys a firearm on behalf of another person who is either prohibited or doesn't want to be traced to the purchase. This is illegal regardless of whether both parties are legally eligible to own firearms. On Form 4473, Question 21a asks 'Are you the actual transferee/buyer?' Answering 'yes' when you're buying for someone else is a federal crime.

Why GatSwap requires FFLs for all trades

Even in states where private party intrastate sales are legal without a background check, GatSwap requires all trades to go through an FFL. This provides NICS screening, a paper trail, and legal protection for both parties. It's a higher standard than federal law requires, but one we believe is right.