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Yes, a face to face "Private" sale is perfectly legal as long as the firearm is legal in the recipient's State of residence.
A face to face sale is not legal across state lines the only legal way is for your brother to ship the gun to a FFL holder in your state and you do the paperwork there to get the gun Some FFL holders will accept the a gun from a private party but some will require that it be shipped from a ffl holder I will post the laws but wanted to get this here ASAP
Randy is right in this case (this is only legal in the same state) (missed the 2 states). Your brother is well within his rights to transfer ownership of the weapon to you, but simply giving it directly to you makes you a gun trafficker in the eyes of the law. To make it legal, your brother should follow the FFL-to-FFL procedure previously discussed.
here is the follow up "Under Federal law, an unlicensed individual is prohibited from transferring a firearm to an individual who does not reside in the State where the transferee resides. Generally, for a person to lawfully transfer a firearm to an unlicensed person who resides out of State, the firearm must be shipped to a Federal Firearms Licensee (FFL) within the recipient's State of residence. He or she may then receive the firearm from the FFL upon completion of an ATF Form 4473 and a NICS background check. More information can be obtained on the ATF website at www.atf.gov and http://www.atf.gov/firearms/faq/unlicensed-persons.html. The GCA provides an exception from this prohibition for temporary loans or rentals of firearms for lawful sporting purposes. Thus, for example, a friend visiting you may borrow a firearm from you to go hunting. Another exception is provided for transfers of firearms to nonresidents to carry out a lawful bequest or acquisition by intestate succession.