1. Read the Auction Catalogue carefully.
In preparation for each sale, auction houses create elaborate catalogues detailing the lots to be included in the sale. Make sure you train yourself to read these catalogues properly.
a. In relation to attribution, there are different terms used (usually placed) next to the artists’ name. “Attributed to”, Style of”, “From the Studio of”, “Follower of” and “After” all have different meanings which make all the difference when you are interested in purchasing an authentic work by the artist. Make sure to read the exact meaning of each term at the catalogue’s glossary.
b. The most important information to look at when looking into the work’s authenticity may be included in the Lot Essay section of the lot. If there is an established expert/ committee on the work of the specific artist, the big auction houses will seek their opinion and will include a work at one of their sales only if the committee has given written assurance that the work is either included or will be included in their upcoming catalogue raisonné. However, lack of such statement does not render the work a fake, as it is often the case that there is no such established expert/ committee for the specific artist, or that there was such an authenticating board, but has stopped issuing authenticity statements (e.g. Warhol Foundation). In this case, buying from one a reputable auction house reduces to some extent the risk of ending up with a fake, but in no way eliminates it. It is therefore necessary to do your research on whether there is an established expert for the specific artist and if not, seek independent advice on attribution.
c. Next to each lot number, check for any symbols (circles, semi-circles, dots, squares etc.) which may indicate whether the lot is subject to a reserve price (though the reserve amount will remain confidential between the house and the seller), is subject to any trade restrictions or is under auction or third-party guarantee (you can read more on auction and third-party guarantees here).
2. Research the lot.
a. Read through both the bibliography and exhibition history (if there are any) mentioned in the catalogue and either ask for copies of each reference, or try to find the books/ catalogues to verify the information. If the item you are interested in bidding on is of high value, ask a provenance researcher to find all archived information related to the specific lot.
b. Provenance and authenticity are two distinct notions which, however, often hold hands; the stronger the provenance, the more the chances that the lot is authentic. Unsurprisingly, a strong provenance is likely to increase the value of the item on sale. Unfortunately, the current seller most of the times remains anonymous in an auction sale. That is why thorough research of the bibliography and exhibition history discussed above may give valuable clues on previous owners.
3. Viewing & Condition Report.
The lot’s current condition and whether it has been subjected to restorations in the past is critical information when deciding to bid. Clearly, physical viewing of the item can be quite telling, preferably with a conservator of your choosing. Ask the auction house for a condition report if they have one.
4. Export Licenses, EU Import License & other Trade Restrictions.
Depending on the location of the sale and the specific country’s export laws, items may be subject to export licenses and restrictions. For example, cultural items of certain age and value may be deemed to be of significant cultural value and thus may be denied export. Similarly, if the sale takes place in a non-EU country and you wish to import it to one of the EU member states, it may be subject to an import license or an importer statement (you can read more on the new EU’s Regulation on the Introduction and Import of Cultural Goods here). Finally, certain objects may be subject to cross-border trade restrictions or bans (for instance, works made of ivory). If the final destination of the object you are planning to bid on is different from the country of the sale, make sure to get expert legal advice on any cross-border restrictions.
5. Terms & Conditions.
At the back of the auction catalogue, you will find elaborate terms and conditions in small print. You need to be aware of these before bidding, as they will form a binding legal contract when the hammer falls. If you are the successful bidder, this legal contract will be binding between you and the auction house.
Important clauses to note are any auctioneers’ exclusions from liability in case of forgeries, misattributions etc., but also provisions in case of payment default, damaged lot, standard additional costs and applicable taxes.
6. Preparing to Bid.
Before bidding, you will have to register by providing certain information to the auction house. If the lot you are planning to bid on is of high value, you may be required to provide proof that you have the funds to purchase a lot of such value. If you have authorized a third-party to bid on your behalf, make sure there are no conflicts of interest which may be detrimental to you.
Also be aware that auctioneers based in the EU are required to conduct client due diligence. Therefore, in case you are the final bidder, you will have to comply with full disclosure of your identity and, in certain cases the source of funds, before the item is dispatched to you. In case you are bidding as a representative of a legal entity, you will additionally have to disclose the beneficial owner’s identity; finally, if you are acting as an intermediary on behalf of a buyer, you will have to fully disclose both yours and your client’s identity.
