The excitement of acquiring an artwork can obscure a simple fact: an art purchase is also a transaction involving ownership, authenticity, condition, provenance and value.
For significant acquisitions, enthusiasm should therefore be accompanied by due diligence.
Provenance
Where has the work been?
A credible ownership history can support authenticity, legal title and value. Gaps do not automatically indicate a problem, but they may warrant further investigation.
Particular attention should be paid to works whose histories intersect with periods or jurisdictions where ownership questions may arise.
Authenticity
The appropriate evidence varies considerably by artist and period.
It may involve an artist's studio, foundation, catalogue raisonné, recognised expert, certificate or technical examination.
A certificate alone should never automatically be treated as sufficient without understanding who issued it.
Condition
Condition can materially affect both aesthetic quality and financial value.
For important works — particularly historical works or pieces involving fragile materials — an independent condition report can be invaluable.
Price
Perhaps the most misunderstood element of due diligence is valuation.
The question is not simply whether another work by the artist sold for more or less.
Date, dimensions, medium, subject, series, provenance, exhibition history and quality can create substantial differences between apparently comparable works.
Terms of acquisition
Invoices and contracts matter.
The identity of the seller, title warranties, taxes, shipping, insurance, payment conditions and applicable jurisdiction should all be understood before funds are transferred.
Good due diligence should not make collecting less enjoyable.
It should allow collectors to acquire with greater confidence.
Sense Advisors independently advises collectors throughout the acquisition process.