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It is a pretty good idea to check with the CLEO first. In Maryland, state law says the only CLEO is the State Police. Generally they are pretty good, it is simply another bureaucratic job, and no sweat if your background is OK. If the CLEO can be local, talk to him or her, or whoever is the CLEO representative. If they never approve, forget it. If they say no problem, fine. Also get to know a local Class III dealer; there are more around than you might think, they keep a low profile.
As to your money, it is easy to write a short contract that says x dollars down, to be refunded if rejected, rest contingent on approval of transfer. Might say y dollars to be refunded, allow the seller something for trouble. Shouldn't be a big problem.
The C&R business as applied to auto weapons is tricky. Some auto arms have been C&R classified, but then BATF says that all auto rules still apply. Also, remember on any C&R licensee to licensee transfer, both licensees must be C&R licensees. If one is a Class III or an individual, the C&R license of the other doesn't mean a thing.
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