What do art market participants need to assess for transactions over €10,000?

In transactions over €10,000, art market participants must assess risks and apply due diligence to ensure a secure and legitimate transaction. Due diligence involves verifying the authenticity of the artwork, understanding the provenance or ownership history, and evaluating the financial and legal aspects associated with the acquisition. This process is crucial as it mitigates the risk of fraud, theft, or purchasing art with undisclosed claims against it. By conducting thorough due diligence, participants can protect themselves against potential losses and ensure that any significant investment they make in artwork is sound and legally compliant.

While considerations such as shipping costs, potential resale value, and historical significance of the artwork are relevant in the context of art transactions, they do not encompass the primary risk assessment and due diligence process that is critical for high-value transactions. These aspects are secondary to the foundational need to verify all aspects surrounding the legitimacy and safety of the investment made in the artwork.