Deloitte Art & Finance Conference
Paris, 21 October 2010
Top 10 Legal Issues
To Consider When Buying and Selling Art
© 2010 Birgit Kurtz
Top 10 Legal Issues to Consider When Buying or Selling Art
1. Which law applies?
 IMPORTANT - Can make a BIG difference
 Contract: “Choice of Law”
 “Conflict of Laws” Analysis
 Recent Development
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
2. Contract
 Oral or in Writing (Emails?)
 Who are the Parties?
 “Reps and Warranties”
 Who Pays for What?
 Who Bears Which Risk?
 Choice of Law
 Choice of Forum
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
3. Appraisal
 Purpose = determine value
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Sale / purchase
Insurance
Estate / gift taxes
Legal disputes re. value, loss, etc.
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Charitable donation
 Qualifications of appraiser
• Education
• Experience
• Neutrality!
 Appraiser Organizations, Auction Houses
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
4. Stolen Art
 Good Faith Purchaser of a Stolen Good?
 Due Diligence (e.g., Websites)
 Statute of Limitations
 Immunity from Seizure
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
5. Cultural Property
 Import / Export
 International Treaties
 Domestic Patrimony Laws
 Can affect value
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
6. Intellectual Property
 Copyright
 Trademark
 Moral Rights (droit moral)
 Economic Rights (droit de suite)
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
7. Insurance
 Physical Loss / Damage
 Authenticity
 Legal title
 Insurance Brokers
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
8. Loans and Collateral
 Collateral
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Legal Title
Authenticity
Value
Possession
Location
 Loan
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Purpose
Amount
Notice
Default / Foreclosure
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
9. Customs
 Who is Responsible: Buyer or Seller?
 Classification - Duty Free?
 Free Ports
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
10. Taxes
 Sales Tax / VAT
 Income Tax / Capital Gains Tax – “appreciation”
 Estate Tax
 Gift Tax
© 2010 Birgit Kurtz
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Top 10 Legal Issues to Consider When Buying or Selling Art
Thank you for your attention.
For questions or comments, please contact:
Birgit Kurtz
Crowell & Moring LLP
590 Madison Avenue
New York, NY 10022
USA
Tel. +1-212-803-4016
Fax +1-212-223-4134
[email protected]
www.crowell.com
© 2010 Birgit Kurtz
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