This is correct. If the seller never gives the firearm to the FFL until AFTER the buyer passes the BGC to complete the 4473. When I get home I will get a link to the ATF procedures.

Quote Originally Posted by BlasterBob View Post
Sure but the seller can hold on to the firearm while the FFL just observes the serial number, thereby NOT relinquishing ownership. I believe the latest BATFE bulletin (ATF Proc.2013-1) pretty well covers most of this crap.
This ATF Proc. 2013-1 bulletin covers "Recordkeeping and background check procedures for facilitation of private firearms transfers".