Ten Frequently Asked Questions

1. Is art theft really widespread?

YES.  Since 1990 the F.B.I., Lloyd’s of London, and other international law enforcement agencies and insurance companies have estimated annual art theft to be in range of six billion dollars. Major art crimes are routinely reported in the press. In addition, the United States government has estimated that as much as 20% of Europe’s art was displaced during the years 1933–1945.

2. As a “good faith” purchaser of art, aren’t I protected against a claim by a former theft victim?

NO.  Under United States commercial law, a thief cannot convey good title even to a good faith purchaser. Thus, a prior theft victim is most often in a superior legal position to recover stolen artwork from a subsequent possessor.

3. Am I protected by acquiring my art from a reputable art dealer or auction house?

NO.  Stolen art has the potential for making its way into the most renowned galleries and auction houses and eventually into the private collections of even the best-intentioned customers, irrespective of contractual guarantees concerning good title.

4. Is there anything I can do as an owner of art to protect myself?

YES.  United States courts may favor the ownership rights of a current possessor of an artwork as against the claim of a prior theft victim if (1) the prior victim failed to take prompt and reasonable steps to recover the stolen art or to prevent its sale downstream, and (2) the possessor can demonstrate that he or she took reasonable steps to verify clear title. In other words, courts tend to balance the equities between two innocent parties. Art Title Advisors’ research services and Ownership Rights Protection^sm Report were developed to respond to this legal challenge.

5. If I lose a suit to recover an artwork do I have real damages?

YES.  Under United States law a theft victim is entitled to recover the artwork or its current fair market value as opposed to what the victim paid for the artwork. A Picasso painting for which the claimant’s grandparent paid $5,000 but is now worth $50,000,000 is entitled to the painting or $50,000,000.

6. Do historic theft victims actually bring claims to recover artworks?

YES.  In 2006 over $500,000,000 worth of artworks were recovered by historic art theft victims and resold at auction.

7. Can I protect art I already own?

YES.  A good faith collector of art can favorably position him/herself in the event of a title challenge if that collector has taken reasonable steps to verify clear title before the problem with title is made known to the art world or law enforcement authorities.

8. Aren’t I better off not investigating artworks that I already own? Shouldn’t I “let sleeping dogs lie”?

NO.  It is far better to understand what title issues are associated with your assets than to ignore them. Estate and financial plans can be ruined due to ignorance with respect to potential competing ownership claims. Command of the facts is always desirable.

9. As a fiduciary, i.e., an estate or trust attorney, or a banker involved with asset protection and planning, can I benefit from my client receiving an Ownership Rights Protection^sm Report?

YES.  The Ownership Rights Protection^sm Report enables fiduciaries to fulfill a number of legal and ethical responsibilities associated with estate and asset management planning.

10 .Can the Ownership Rights Protection^sm Report add value to my artwork?

YES.  The Report enables a collector to demonstrate to the market that a subsequent good faith purchaser would be well-positioned to prevail against a competing ownership claim.