3 Legal Implications To Handle In An Art Transaction

Transactions are among the most common issues in art law. People sell and transfer works of art all the time. These transfers, though, have legal implications, and it's important to be aware of some of the biggest issues.

Specificity

Specificity is important in nearly all types of transactions, but an art lawyer will be particularly concerned about it. Many artists produce multiple versions of pieces. If the pieces are numbered prints, it's fairly easy to just specify the numbers in any contract. However, a series of paintings that includes variations that are fairly close to each other can create confusion.

Whenever possible, legal counsel for art transactions will want as much documentary evidence for the work as possible. Photos are always excellent as long as the materials involved don't react poorly to light. Similarly, a written description can support the long-term provenance of the piece. An artist may also attest to some things about the piece to further boost provenance.

Rights

Physically possessing a piece of art does not necessarily mean you own all of the rights associated with it. For example, an artist might sell the right to display work without selling other rights like the copyright-based ability to commercialize the art. The artist could retain the right to produce T-shirts based on a painting, for example.

Similarly, many art transactions come with limitations. An artist might insist that you have to display their work under certain lighting and environmental conditions, for example.

Whatever an acquiring party might want to do with a work of art, they should understand the rights and limitations before putting down money. An art attorney can look at the prospective buyer's goals and determine if the contract is compatible with them.

The Transfer Process

Like any asset, parties may have concerns about how a transfer will unfold. Artworks can be subject to escrow requirements similar to closing on a house. The two sides will have to agree on a price and a third party to hold the funds pending the transfer. Likewise, they'll have to agree on what conditions will satisfy the terms of escrow.

A piece of art may also have handling requirements during the transfer process. If it is fragile, for example, the parties may have to agree on how to pack and ship the piece. An art lawyer will want to see the requirements spelled out in a contract so no one can question the handling at a later date.