The fine print of ownership
New buyers beware: there are many logistical elements involved in the acquisition process. You might want to hire a lawyer to ensure loans taken out by the former owner of a piece of art are paid off. Some people take loans to finance their purchase while others might put the art up for collateral on another loan. It’s critical on pricey works to make sure the art isn’t tied up in a loan.
“It used to be a hand shake-type industry, which was fine when prices were lower. Now that it’s an asset class, it needs to be treated more like real estate,” Wierbicki said.Always negotiate contracts and pricing. If you don’t negotiate (and understand) the terms laid out in the contract, Wierbicki said, later on if, say, you find out the work is a forgery, it can be impossible to get your money back. Newbies may not know that just because someone presents you an invoice with a price, that amount is not a concrete asking price, she added.
You should also always familiarise yourself with local laws when purchasing overseas. At auctions in Paris, for example, a museum has the authority to trump a buyer.
To ensure authenticity, buyers must also secure an official bill of sale. Forgeries are near impossible to spot if you aren’t trained and art stolen by the Nazis during World War II has recently emerged on the market, adding to ownership questions.
