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Why. Its a home built receiver. He can sell it. He needs to engrave the makers name and address and a serial number and if he does it as though he engaged in a business he needs to register as a FFL/Manufacturer. There is nothing illegal as listed in his ad.
Not true. You need to mark if you sell. Engage in a business of building to sell and you need an 07 FFL. The ATF is considering simple gunsmithing to be manufacturing these days.