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A firearm bill of sale is a document that details the sale of a firearm—handgun, rifle, or shotgun—between a private buyer and seller, signaling the transfer of ownership and protecting both parties legally. The video outlines vital information about firearm bill of sale forms and where to access a free official template. It emphasizes that, since gun laws vary by state, the process for selling a firearm can differ, with some states having stricter requirements than others. Key steps include researching state-specific gun laws, selling to a trustworthy individual, performing a background check (as required or optional by state), negotiating sale terms, and creating a bill of sale.