Delicate issue- legal/moral advice
OK, so I am planning on buying a used firearm from an individual. Its a Smith and Wesson 1955 Chief Special chambered in 38 special. Now, the guy gave me the serial number, and I called my local police department. The officer I spoke to ran the serial, and said that because of the way S&W does its serials, I will need to bring the weapon to a police officer so that it can be examined. There are apparently some at least partial matches to the one I am looking at.
My intended solution is to meet the seller at a police department half-way between where we live, and have them check it out before we make any exchange. I figure this way, I am not out $325 for a firearm I have to return to the police. I am offering the gentleman an extra $25 for the extra hassle of meeting with an officer.
My concern is if the seller chooses not to do the deal because of having the gun checked. Do I have a legal/moral obligation to alert local police that this man may posses a stolen firearm? I have no proof nor any reason to suspect this man stole the weapon, but he got it in a trade, and I don't know what he did to verify its legitimacy. His price is already lower than most, but if he refuses, should I lower my price due to its potential compromised ownership? I live in Indiana, which does not register firearms.