Rules for buying and selling works of art at auction
Rules for buying and selling works of art at auctions We start with a simple and brief definition of auctions of works of art. Auctions are one of the common methods of buying and selling artworks, where artworks are sold competitively and at the highest price payable by the selected auction participant.
The rules for buying and selling works of art at auction are determined by auction houses. However, there are some general rules that most auctions follow. In the following, we will discuss the rules of buying and selling works of art in the auction, which must be done by the buyer, seller, and auctioneer or auction house.
A part of the 19th Tehran auction that was hammered by Reza Kianian
Who is looking at the moment of selling the painting? By Hossein Zinda Roudi
https://www.youtube.com/watch?v=CM64x6xxgm4
A comprehensive auction guides
“The Art Auction Handbook” by Mary Lou Webster
This comprehensive guide provides valuable insights into the world of art auctions. Content covered includes topics such as understanding auction house procedures, navigating bidding strategies, and assessing the value of works of art.
General rules for buying and selling works of art at auction
The rules of participating in buying and selling works of art at auction in Iran are determined by the Ministry of Culture and Islamic Guidance. These laws have been notified to art auction organizations after approval through the relevant institution.
According to the rules of buying and selling works of art in the auction, you must meet the following conditions:
- Participation in the auction is open to the public.
- People under the age of 18 cannot participate in the auction.
- Persons without legal capacity cannot participate in the auction.
Rules for buyers of works of art at auction
- Buyers must register and receive an auction number before the auction.
- Buyers must determine the maximum price they are willing to pay.
- Buyers can participate in the auction in person, by phone or online.
- Buyers must pay auction fees.
Rules for sellers of works of art at auction
- Sellers must submit their artwork to a reputable auction house.
- Sellers must provide complete information about their artwork.
- Sellers must pay auction fees.
Rules for auctioning works of art
- Works of art are sold at an open auction.
- The buyer is the one who offers the highest price.
- The hammering of the auctioneer means the conclusion of a purchase and sale contract.
Rules for payment for artwork sold at auction
- Buyers must pay the purchase amount within 7 days after the auction.
- Buyers must pay for shipping and insurance.
- The seller must pay the commission of the auction house.
In the following, some important rules for buying and selling works of art in the auction are explained in more detail.
Buyer Rules
Register
Buyers must register and receive an auction number before the auction. This is usually done through the auction house’s website or by phone. During registration, buyers must provide personal information such as name, address, phone number, and credit card number.
Maximum price
Buyers must determine the maximum price they are willing to pay. This helps buyers to avoid additional costs. Buyers can declare their maximum price during registration or the auction.
How to participate in the auction
Buyers mainly participate in the auction in person, by phone, or online.
- In person: buyers must be present at the auction site and announce their bids verbally or by using the auction card.
- By phone: buyers can contact the auction house by phone and announce their offers.
- Online: Buyers participate in the auction through the website of the auction house and announce their offers online.
Auction fees for buyers
Buyers must pay auction fees. These costs usually include the price of the artwork, shipping and insurance, VAT, and other incidental costs.
Rules for sellers
Providing information
Sellers must provide complete information about their artwork. This information includes the name of the artist, the title of the work, the date of creation, the genre of the work, the dimensions, and the history of the ownership of the work and helps the buyers to make a better decision about buying works of art.
Auction fees for sellers
Sellers must also pay auction fees. Costs such as auction house commission, value-added tax, and other side costs. The commission fee of the auction house is usually between 10 and 20 percent of the sale price.
Auction rules
- Commission fee: The auction house receives an amount as a commission fee from the buyer. This amount is usually a percentage of the sale price of the work.
- Possibility of exchange or return: In an auction, it is not possible to exchange or return works of art. However, some auction houses offer special conditions for the exchange or return of works of art.
- Returning the work: If the buyer wins the auction, he must pay the purchase price within a certain period. In case of non-payment within the stipulated time, the auction house can return the work to the seller.
- Right of ownership: The ownership of the artwork is transferred to the buyer after payment.
In the following, some special rules that may be applied in different auctions are mentioned:
minimum price
In some auctions, a minimum price is set for artwork. If the price offered by the buyer is lower than the minimum price, the work will not be sold.
base price
The base price is the price determined by the auction house for the artwork. The auction starts at the base price and buyers can increase their bids.
open auction
Works of art are sold at an open auction. In this type of auction, the buyer is the one who offers the highest price.
hammer
The hammering of the auctioneer means concluding the purchase and sale contract and finalizing it. At this moment, the buyer commits to pay the amount of his offer.
the payment
Buyers must pay the purchase price and other related fees within 7 days after the auction. Buyers can pay by cash, credit card, or check.
Also, the sellers are obliged to pay the expenses related to participating in the auction.
Shipping and insurance
Buyers must pay for artwork shipping and insurance. Art shipping costs are usually determined by weight and distance between the auction location and the delivery location. Artwork insurance costs are also announced based on the value of the artwork.
Important tips for buying works of art at auction
Here are some important tips for buying works of art at auction:
- Do your due diligence before bidding. Get enough information about the artworks on offer to make a better buying decision.
- Determine the maximum price you are willing to pay. This will help you avoid additional costs.
- Be careful during the auction. Announce your offers quickly and on time so that you don’t miss the opportunity to buy your favorite works of art.
By following these tips, you can have a successful experience of buying works of art at auction.
in the end
Buying and selling works of art in the auction has its own special rules like any other buying and selling. Knowing these rules will help buyers and sellers get the most out of the auction and have a smooth art transaction.
Finally, it should be noted that the rules for buying and selling works of art at auction may be different in different countries. Therefore, before participating in the auction, it is better to be aware of the laws governing that country.
More resources to study
To read more, you can refer to the following articles:
Art Auction Rules and Regulations
An Art Lawyers guide to buying art at auction
10 Tips for Selling Art Through Auction
