Be it with ultra-contemporaries, old masters, antiquities, memorabilia or even fossils, furnishing your new home with a collection is an exciting venture. There is, dare I say, a 'blank canvas' to define your interests and aesthetic and make the place truly yours.
When dealing with high-value pieces, plan and prepare. As a lawyer in Mishcon de Reya's Art Law team, I have seen what can go wrong: from forgeries to scams, ownership claims to damage, and even unexpected tax liabilities. In this three-part series, I discuss the various stages of art ownership and how you can protect yourself along the way.
Stage one: making a purchase
From a legal perspective, buying art is not so different from buying property. However, while it is accepted that real estate transactions require time, conveyancing and a robust contract, art deals can be more impulsive. The following sets out factors to consider before making a purchase: 
- Think about ownership. Generally speaking, the buyer gains title to the artwork. Seeking professional advice at the outset can help avoid expensive reorganisations later. Whether owning art personally, jointly, or through a trust or corporate entity, each option has distinct legal and tax implications. If purchasing as a gift, ensure this is clearly documented.
- Due diligence is key. Investigate the artwork's provenance, authenticity, condition, and value before making a payment, ideally with documentation and independent advice. Under English law, the buyer must conduct due diligence, though some consumer protection laws apply. Assess the seller's reputation and authority, and question if the deal seems too good to be true.
- Have a contract. Like with most deals, a clearly defined contract is crucial for protection. It should specify when you receive title, which may not coincide with payment. The contract should also detail the artwork and any key representations. Negotiating terms also provides time for further investigation and teases out information.
- Transport and Insurance. Consider logistics if the art is moved or stored. Packing, storage, and transport costs are typically excluded from the purchase price and can be significant. For international moves, import/export licences, restrictions and taxes may apply. Finally, remember to get specialist art insurance.
Mishcon de Reya's dedicated Art Law team has ample experience in dealing with the factors set out above, and many more.
If you have any questions, please feel free to contact me: lavinia.denazelle@mishcon.com