The escrow of the price of an artwork or a collectible asset
Sales of artworks, classic cars or rare objects involve high amounts and require a particular degree of trust: the buyer wants to be sure of the authenticity and provenance of the item, while the seller wants the certainty of being paid. The escrow of the price reconciles these expectations.
Time for verification
Before closing definitively, the buyer often wishes to have the authenticity of the artwork, its provenance and the absence of any dispute over title verified. By placing the price in escrow, the funds are reserved as soon as the agreement is reached, but are released to the seller only once these verifications have been carried out and the item has actually been delivered.
Protection for both parties
The seller is assured that the buyer does have the funds, since they are already deposited. The buyer, for their part, is protected against the risk of paying before receiving a conforming item. Neither party can dispose of the funds unilaterally in the meantime.
The release conditions to provide for
The escrow agreement tailors the release conditions to the nature of the item and to the desired verifications:
- Confirmation of authenticity by an expert or an authentication committee;
- Verification of provenance and the absence of any claim (stolen-property registers, restitutions);
- Checking of title and the absence of any pledge or charge;
- Actual delivery of the item and inspection of its condition.
A secure framework
Entrusted to a lawyer, the escrow relies on the CARPA account: control of the origin and destination of the funds, a dedicated sub-account, traceability and confidentiality. A framework particularly well suited to transactions that are by nature discreet.
Are you selling or buying an artwork or a collectible asset? Fidens holds the price in escrow until the item has been verified and delivered.
Frequently asked questions
Why place the price of an artwork in escrow?+
Because the buyer wants to verify the authenticity, provenance and title of the item before paying, while the seller wants the certainty of being paid. The escrow reserves the funds as soon as the agreement is reached and releases them only after these verifications and delivery.
Is escrow suitable for sales of classic cars?+
Yes, as for any asset of value: a classic car, a rare object, a prestige item. The escrow agent holds the price until the item and its title have been verified, then releases it to the seller in accordance with the agreement.
Does the transaction remain confidential?+
Yes. An escrow entrusted to a lawyer is covered by professional secrecy, and the funds are ring-fenced on a dedicated sub-account. A framework well suited to the discreet transactions of the art market.
A transaction to secure?
Fidens sets up the escrow of the price on a CARPA account, under the responsibility of a lawyer.