It is so very sad that there are so many uneducated people when it comes to the research of purebred dogs.
As it was stated by a few, it IS illegal to sell pups unregistered from registered parents. It's also illegal for the seller to charge more for a registered pup and charge less for an unregistered pup. There are three parts to registering. One is the litter. Second is each pup and third is the new owner.
WOW. No contract? HUGE red flag there. I really hope all is well with this pup. And I really hope your friend took the pup to the vet once she got it. This is always a must when getting a new pup.
Also. There is no such thing as a 130lb GSD. They have come up with this Shilo breed and stating they are brining back the "old" GSD. Not even close. They were never ever a "huge" breed. My current GSD is a retired police dog. My brother was his handler. If he weighed that much, he would not have made it on the force.
The RCMP do use the Mal in Police work. We also use them on the forces here. The term we use is General Purpose Police Dogs.