How To Sell Guns At An Auction

Persons engaged in the business of dealing in weapons must be licensed by the ATF under federal law. Dealing weapons without a license carry a sentence of up to five years in jail, a fine of up to $250,000, or both. As a general guideline, if you acquire and sell firearms regularly for profit, you’ll require an FFL.

Is it legal for a licensee to perform background checks and transfer weapons on behalf of an unlicensed auctioneer?

No, in most cases. Because most auctions do not qualify as a gun show or qualifying event, a licensee cannot conduct business outside of the licensed premises.

Where may firearms be sold if they are auctioned by a licensed auctioneer?

Firearms may be presented at an auction site other than the Auctioneer’s licensed premises in a consignment auction. The firearms can be sold in that place, but they must be returned to the Auctioneer’s permitted premises before they can be transferred. The simultaneous sale and delivery of the auctioned firearms outside of the licensed premises would be illegal, as it would be conducting business at an unlicensed site.

If the Auctioneer is aiding an estate in disposing of guns, the estate is the seller and has custody and possession of the firearms.

Is a dealer’s license required for an auctioneer who sells firearms?

Estate auctions and consignment auctions are the two sorts of auctions.

The executor of an individual’s estate sells the items to be auctioned (including firearms) in estate–style auctions. The executor owns and owns the firearms. The estate is in charge of the firearms, and the estate is also in charge of the sales of firearms. The auctioneer is working as the executor’s agent and assisting him in seeking purchasers for the firearms. In these circumstances, the Auctioneer does not fulfill the description of a guns dealer and hence does not require a license.

A licensed auctioneer may execute this activity outside of his or her licensed premises.

An auctioneer frequently takes control of firearms in advance of a consignment sale. In most cases, these firearms are inventoried, appraised, and tagged for identification. The firearms belong to someone who has signed a consignment agreement with the Auctioneer, giving him or her the authority to sell them. As a result, firearms are in the possession and control of the Auctioneer. An auctioneer would almost always need a license in these situations.

Contact your local ATF office if you’re not sure if a license is required in a specific consignment auction situation.

High Plains Auctioneers

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