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A firearm bill of sale documents the sale details of a handgun, rifle, or shotgun between a private buyer and seller, conveying ownership transfer and protecting both parties legally. The video covers key information on firearm bill of sale forms and where to find free templates. It outlines essential steps for selling a firearm, which may vary by state due to differing gun laws. Best practices include researching state-specific laws, selling to a trustworthy individual, conducting a background check (if required), negotiating sale terms, and creating a bill of sale.