I Dont know about where you live, but in Durham, NC that service is free. All you do is call the local sheriff department and read them the serial number and they will tell you whether the gun comes back clean or not. Tell them you are considering purchasing a pistol from a private party and you want to know whether you are purchasing a legit product or not.
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Most of the PD's locally want to see the firearm for themselves before checking. My guess is the reason is two-fold. To prevent improper use of the database and so they can seize the weapon if it proves to be stolen.
If one were to check, find out a firearm they were about to buy proved to be stolen, they'd most likely just say now way on the purchase. That doesn't do anything to get the stolen weapon off the street and back to the rightful owner.
I know that a local Pawn Shop regularly calls police on firearms that people are about to pawn. Every once in a while I see several cars in the lot, officers out arresting the person attempting to pawn it. If I am correct, Pawn Shops have to report merchandise they pawn/buy, especially firearms. Apparently this one does it while the customer is still waiting for their money.