How to Buy Used Phones Safely: A Checklist for Shops

To buy used phones safely, check the IMEI against a lost or stolen database before you pay, make sure the phone is free of iCloud or Google account locks, verify the seller with a government photo ID and a signed ownership statement, inspect and grade the phone, record everything on a bill of sale, and follow your state and city's secondhand dealer rules on holding periods and police reporting. Then erase it properly before you resell it. This guide walks through each step for a repair shop or phone store buying from the public.

Start with your local rules, before the first purchase

Buying used phones from the public is regulated in many places, and the rules can be detailed. Two examples show what you might be dealing with:

Florida. Florida's secondhand dealer law covers businesses that buy, consign or trade used personal property. For each purchase, the dealer must record the seller's details, verify a government issued photo ID, take the seller's right thumbprint, describe the goods including the manufacturer's serial number, take digital photos, and have the seller sign a statement that they own the goods. The record goes to law enforcement within 24 hours and must be kept for at least 3 years. Most goods must then be held for 15 calendar days before they are sold (30 days if bought through an automated kiosk).
California. Secondhand dealers and pawnbrokers report their purchases to the California Department of Justice through its online system, CAPSS. The DOJ's FAQ says dealers must report all secondhand tangible property purchased or taken in trade, and lists an electronic signature pad and a fingerprint scanner among the required equipment.

Your state may have different rules, or your city or county may add its own license, hold period or reporting system. Before you buy, check with your state's attorney general or department of justice, your city or county business licensing office and your local police department. Ask them three questions: Do I need a secondhand dealer license? What must I record and report, and how fast? How long must I hold a device before I sell it? This guide is practical advice, not legal advice.

Step 1: Get the IMEI or serial number, and make sure it matches

Every check that follows depends on having the right number.

On iPhone, go to Settings, General, About. If the phone is not set up, tap the info button on the Hello screen. Apple's guide to finding the serial number or IMEI also lists the SIM tray on some older models and notes that iPhone 14 models and later have no IMEI engraving.
Compare every place the number appears: Settings, SIM tray, original box, the seller's receipt. A mismatch is a reason to stop.
Check the format. An IMEI is 15 digits: according to the GSMA's IMEI guide, the first 8 digits are the TAC that identifies the brand and model, the next 6 are the unit's serial number and the last is a check digit. If the model the TAC points to does not match the phone in your hand, stop.

Step 2: Check whether it was reported lost or stolen

In the United States, the Stolen Phone Checker is a public service that lets consumers and law enforcement check whether a device has been reported lost or stolen, with sections for consumers, law enforcement and commercial users. When it launched, the GSMA explained that the service, launched by CTIA and powered by GSMA Device Check, draws on data from over a hundred carriers internationally, including AT&T, T-Mobile, US Cellular and Verizon. At launch it was free for consumers, with up to five checks a day. If you buy phones every day, look at the commercial options for business volume.

How to read the result:

Reported lost or stolen: do not buy it. Follow your local rules on whether to report the attempt to police.
Not reported: good, but it is not proof of ownership. It only means nobody reported it. Keep going with the account lock and seller checks.

Step 3: Make sure there is no account lock

A phone tied to someone else's account is worth little, even if it is not stolen.

iPhone and iPad (Activation Lock). Apple explains that Activation Lock turns on with Find My and requires the owner's Apple Account password to erase or reactivate the device. Its guidance for buyers is clear:

If the screen says iPhone Locked to Owner, do not take it.
If you see a passcode Lock Screen or the Home Screen, the phone has not been erased. Ask the seller to erase it in front of you.
Start setup. If you are asked for the previous owner's Apple Account, the phone is still linked. Hand it back until the seller removes it from their account.
The phone is ready when you see the Hello screen.

Apple also notes that parts taken from a device that was locked when removed may not be eligible for its warranty service, so a locked phone bought "for parts" carries risk too.

Android. Google's help page says that after a factory reset, you must sign in with the Google Account that was on the phone to finish setup. So ask the seller to remove their Google account and reset the phone in front of you, then confirm it starts setup without asking for the previous account.

Step 4: Verify the seller

Government photo ID. Check that the photo matches the person and that the ID has not expired. Record the ID type, number and issuing state.
Photo of the ID, front and back, if your local rules require or allow it. Store it where only authorized staff can see it. The FTC's guide for businesses says to collect only what you need, keep it locked and dispose of it securely.
Age. Decide your policy for sellers under 18 and check what your local law says.
A signed ownership statement, saying the seller owns the phone and has the right to sell it.
Thumbprint, where the law requires it (Florida does).

Red flags that justify saying no: several of the same new model from one seller, no charger and no box but a story about an upgrade, a seller who cannot unlock the phone, a rush to get cash, or an ID that does not match.

Step 5: Inspect and grade the phone

Use the same checklist on every phone so every employee grades the same way. Write each line so that "pass" is the good answer:

Powers on and charges normally
Screen has no cracks; display has no lines, spots or burn in
Touch works everywhere
Cameras, speakers and microphones work
Buttons and switches work
Face ID or fingerprint works
Cellular, Wi-Fi and Bluetooth work
Battery health is acceptable
No sign of liquid damage
Body and back have no dents or cracks
No iCloud or Google account lock

On iPhone, also open Settings, General, About and look at Parts and Service History. Apple says it can show whether a replaced display, battery, camera or logic board is Genuine, Unknown, Unverified or Used, and that matters for resale value.

Then assign a grade with a definition everyone uses:

Grade	Meaning
New	Unused, in its original condition
A	Like new, no visible wear
B	Light wear, small marks that do not affect use
C	Clear wear, scratches or dents, fully working
D	Heavy wear or a fault, sold as is
DOA	Does not work, for parts or repair

Step 6: Make an offer you will not regret

Work backward from resale:

Offer = expected resale price − refurbishing cost (parts and labor) − your target margin − a risk allowance

Write the result in a price list by model and grade, so every employee offers the same amount. Many shops offer a little more in store credit than in cash, because the money stays in the shop.

Step 7: Write a bill of sale

Pay only after the paperwork is complete. The bill of sale should include:

Date, time and your shop's details
Seller's name, address, phone and ID details
Device brand, model, color, storage, IMEI or serial number
Grade and condition notes, with photos
Amount paid and how (cash, store credit, trade-in, transfer)
The seller's signature on the ownership statement and your agreement
The employee who made the purchase
A reference number, and the hold date if your area has a hold period

Give the seller a copy and keep yours for as long as your local law requires (Florida requires at least 3 years).

Step 8: Hold, wipe and resell

Hold the phone for your required period. Do not display it for sale before then.
Erase it. For iPhone, Apple's checklist ends with signing out of iCloud and erasing all content and settings, which turns off Find My and Activation Lock. Confirm you reach the Hello screen. For Android, reset it and confirm setup does not ask for a previous account.
Refurbish and record the cost of any parts and labor, so you know your real margin.
Resell with a grade and a warranty that matches the grade.

How SpotsPOS Repair handles buybacks

Buybacks in SpotsPOS Repair follow these steps on the iPad or iPhone at your counter. Every IMEI is checked for a valid format and for duplicates (already in your inventory, sold by you before, or bought before), and when a lost or stolen check is set up for your shop it runs on every IMEI and can block flagged devices from being paid. Staff answer your own condition checklist with pass or fail and SpotsPOS suggests a grade from New to DOA. You can require the seller's ID type and number, photos of the front and back of the ID (stored privately with the buyback), a signature on your agreement and the employee's PIN, and the app warns when an ID has expired or the seller is under 18. Paid buybacks print a bill of sale with the seller's signature, a hold period keeps items from being sold until it ends, and the Trade-in report exports a purchase log with seller and ID details. See device management for what happens after the purchase.

Frequently asked questions

How do I check if a used phone is stolen?

Get the IMEI from the phone's settings and confirm it matches the SIM tray or box, then check it at the Stolen Phone Checker, a public U.S. service for checking whether a device was reported lost or stolen. A clean result only means it was not reported, so also confirm there is no account lock and verify the seller's ID.

Is it legal for my shop to buy used phones?

In most places yes, but many states and cities regulate businesses that buy used goods from the public. Florida, for example, requires ID, a thumbprint, police reporting within 24 hours and a 15 day hold for most goods. Check with your state, your city or county and your local police before you start.

How do I know if an iPhone has Activation Lock?

Turn it on. If it says iPhone Locked to Owner, or if setup asks for the previous owner's Apple Account, it is still locked and you should not buy it. Apple says the phone is ready for a new owner when the Hello screen appears.

What should a bill of sale for a used phone include?

The date, the seller's name and ID details, the device model, color and IMEI or serial number, its grade and condition, the amount and method of payment, the seller's signature on an ownership statement, the employee who bought it and a reference number. Keep it for as long as your local law requires.

How long do I have to hold a used phone before selling it?

It depends on where you are. Florida requires 15 calendar days for most secondhand goods; other states and cities set their own periods or none. Ask your local police department or licensing office.

Buying phones at your counter? See how SpotsPOS Repair runs every buyback from the IMEI check to the bill of sale.