How ‘Third-Party Partners’ Helped Christie’s Record-Breaking New York Auction
Frank Lord was quoted in The Art Newspaper regarding a recent Christie's art auction at which external investors backed five works as third-party partners without Christie's including that information in the sale catalogue. According to New York legal code, third-party partners can bid on works that they have a stake in, but if partners do not intend to bid, the auction house does not have to reveal their involvement. However, any auctioneer or public salesroom must disclose any "direct or indirect" interest in a work other than the selling commission. "If an auction house only sells off a part of the guarantee, and the third party retains privacy, then it would seem that the auction house does have an interest, even if the third party doesn't bid," Lord said. "It would seem like the auction house would have to disclose that."