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Private sales are completely legal, but that does not absolve you of liability in any manner whatsoever.
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Actually, it does. There is a break in the chain of custody/ownership- you cannot be held responsible for what someone does after the fact, especially if you operated under good faith and the buyer lied to you.
I have only done one private sale where we each showed the other our state ID, but if he had asked me to fill out paperwork or wanted to write or copy down my information, I would have walked.