Ask ARTINFO: Can You Take It With You?

Photo © Christie's Images LTD 2007

Christie’s Post-War and Contemporary Art Sale, May 2007

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I'm new to the art market, but I'm eager to start a collection and I have money to burn. So naturally, when I acquire my first major work, I want to see it up on the wall as soon as possible. If I win a bid at an auction, can I take the art home with me that night?

—Antsy for Art, Boston, Mass.

Well, Antsy,

It depends on your form of payment and how quickly it clears.

While some people would imagine the size or the value of the artwork to be the biggest factors, an auction house is a business like any other. As soon as you pay, they'll hand you the merchandise. A faster approval means less waiting.

The most basic forms of payment are cash, check, wire transfer, and money order. Sadly, your Visa isn't everywhere you want to be, and more often than not, the auction house won't accept credit cards.

Christie's, for instance, does not accept credit card payments for the art itself, but it does allow customers to charge sales tax and shipping. And even when the house does take credit, there are restrictions based on the type of card, as well as your credit limit and history.

While Sotheby's has tended to accept Visa and MasterCard in Europe, it hasn't in New York. Until now, that is. The house is remedying the plastic problem this month with the launch of the Sotheby's World and invitation-only World Elite MasterCards.

No matter which payment method you choose, a pile of paperwork is an inevitable part of the process. But since getting a paddle requires registration, as well as a credit and identity check, much of this can be taken care of before gavel time. After the sale, the house finishes up the release papers and can send you an invoice or bill you on the spot. The charge includes the auction price, plus house commission (called the buyer's premium) and local sales taxes, if applicable.

The good news is that auction houses tend to hustle through the papers as quickly as possible, to avoid a huge pick-up line at the end of the day. Many push to approve the transaction right away, such as Swann Auction Galleries in New York, which tries to finish the process within an hour after the auction. And it's not unheard of for houses to let trusted, long-term clients walk away with the art that day, whether or not all the paperwork has been sorted out.

But most of the time, only after the paperwork is complete and the payment approved—however long that may take—can you bring your art home with you. So if you want to get that Warhol on your wall as quickly as possible, the best bet on your end is to avoid payment clearance delays. Forget plastic and personal checks—bring the Benjamins with you on auction night.

I hope that answers your question.

Sincerely,
ARTINFO

P.S. Would you also like to know what happens if you find yourself in the opposite situation, and you can't or don't want to take the work home right away?

Well, an auction house will usually give you a grace period of a month or so before unleashing its wrath—charging from $45 to $90 for administration fees, and $4 to $10 in storage fees per extra day, depending on the size of the property being held. Smaller houses may be more tolerant, though; some will hold art up to a year or more, periodically nudging clients to claim their prizes.

To avoid pick-up hassles altogether, some houses like Swann and Christie's have in-house packaging and delivery services to ship works at your convenience—for a fee, of course. However, as an added bonus, they'll nix the sales tax.

ARTINFO thanks Sotheby's Lauren Gioia, Swann's Nicholas Lowry, and Christie's Bendetta Roux for their help on this article.