I bought a used iPhone 4 with iOS 7 from a local shop. I am not sure as to how to be sure if it is not stolen. I was able to do a factory reset on the phone and use my own Apple ID to use the phone.
I tried going to iCloud to check if Find My iPhone was active on the device and I found out that it is activated but using my Apple ID only.
I know that I should do a proper verification before I bought it but I think it is too late now and nothing can be done about it other than checking next time I buy a used phone.
As proof of purchase the store owner wrote the Price on a Plain paper with his name and phone number and handed it to me.
Best Answer
Restoring an iOS device will remove any record of a previous owner on the device.
If the device was purchased from an Apple Store, then Apple may have record of it being set up even if Find My iPhone. This also applies to other retailers, however I am not certain if this is possible.