I bought a bike this morning from a local pawn shop. They had advertised it on CraigsList. The price was excellent, almost foo good.

The bike did have a local police registration tag on it, and I've called the police to check whether they've received any stolen report on it. I won't get their feedback until tomorrow.

If the bike turns up to be stolen, do I return it to the pawn shop for a refund, or do I turn it over to the police & then lose my money?

I obviously don't want to keep the bike if it is stolen, but it doesn't seem fair that I'd buy the bike from a legitimate business and then lose money because the business didn't do due diligence before selling it to me...

How does this work?