Summertime and the Art Buyin’ is Easy: Asking Questions about Art Transactions

By Daniel S. Kokhba, Esq.

In the art market, a work of art is often carefully scrutinized and questioned by collectors and their agents concerning its style and substance. The art sale, however, may receive far less careful review. Given the prevalence of fraud, conflict of interest, and lack of transparency in such transactions, one should adopt the habit of asking hard and direct questions before committing to a deal - particularly concerning price and associated fees.

While a buyer often intuitively knows to ask for the price of a work of art or service, the basis for the asking price, and a discount, the inquiry should not end there.

In the event that the price of a work is especially low relative to the market, a buyer should ask the seller why. In some cases, it may well be that the market commands a reduced price (e.g., unsold inventory, comparable sales). On the other hand, a buyer should be aware that bargain basement prices often serve as red flags for lack of authority (or title) to sell, the possibility of forgery or other fraud.  See Davis v. Carroll, 937 F.Supp.2d 390 (S.D.N.Y. 2013).