Important Update: New Buyer’s Premium Schedule

Effective 19 September 2016

Following an internal business review, Christie's International announces an updated Buyer’s Premium schedule that will result in a modest increase in the fee paid by the successful buyer of an item at auction. Christie’s last updated its Buyer’s Premium fees in October 2013.

For all collecting categories other than Wine, the update to the fee schedule amends the price thresholds at which fees are applied (see detail below) but presents no change to the fee percentages themselves. The new buyer's premium rate will be an amount equal to 25% of the hammer price of each lot up to and including £100,000/US$150,000; plus 20% of the hammer price from £100,001/US$150,001 up to and including £2,000,000/US$3,000,000 and 12% above £2,000,001/US$3,000,001. This change effectively widens the thresholds where the percentage fees apply but does not change the percentage rates.

These changes will take effect for all auctions occurring on and after September 19, 2016. The new fee schedule follows below. Any timed online-only sale that opens for bidding prior to September 19, 2016, will continue to use the current Buyer’s Premium schedule.

All rates as quoted exclude local sales taxes. See schedule for VAT-inclusive rates in Amsterdam and Milan.



COMPLETE BUYER’S PREMIUM SCHEDULE FOR VARIOUS CURRENCIES
(Effective 19 September 2016)
Christie's Buyer's Premium Schedule for All Collecting Categories Except Wine
Sale Site Rate Threshold
London
King Street &
South Kensington
25.0%
20.0%
12.0%
Up to £100,000
£100,001 to £2,000,000
£2,000,001 and Above
New York 25.0%
20.0%
12.0%
Up to $150,000
$150,001 to $3,000,000
$3,000,001 and Above
Online 25.0%
20.0%
12.0%
Up to $150,000
$150,001 to $3,000,000
$3,000,001 and Above
Hong Kong 25.0%
20.0%
12.0%
Up to HK$1,200,000
HK$1,200,001 to HK$20,000,000
HK$ 20,000,001 and Above
Shanghai 20.0% No Threshhold
Geneva 25.0%
20.0%
12.0%
Up to CHF150,000
CHF150,001 to CHF2,500,000
CHF2,500,001 and Above
Zurich 20.0% No Threshhold
Paris 25.0%
20.0%
12.0%
Up to €50,000
€50,001 to €1,600,000
€1,600,001 and Above
Amsterdam (all-inclusive rates) 30.3%
24.2%
14.5%
Up to €50,000
€50,001 to €1,600,000
€1,600,001 and Above
Milan (all-inclusive rates) 30.0%
26.0%
18.5%
Up to €50,000
€50,001 to €1,600,000
€1,600,001 and Above
Dubai 25.0%
20.0%
12.0%
Up to $150,000
$150,001 to $3,000,000
$3,000,001 and Above
Mumbai 25.0%
20.0%
12.0%
Up to INR 6,500,000
INR 6,500,001 to INR 150,000,000
INR 150,000,001 and Above


Additional Information

Paris
For Paris auctions additional charges apply to lots marked with the f, ff and + symbols.

Amsterdam
Amsterdam rates are quoted inclusive of VAT in catalogues. The VAT-inclusive rates are: 30.25% up to €50,000; 24.20% €50,001 - €1,600,000; and 14.52% on €1,600,001 and above.

Milan
Milan rates are quoted inclusive of VAT in catalogues. The VAT-inclusive rates are: 30.0% up to €50,000; 26.0% €50,001 - €1,600,000; and 18.5% on €1,600,001 and above.

Dubai
Lots are subject to 5% import Duty on the importation value (low estimate) levied at the time of collection shipment within UAE. For UAE buyers, please note that duty is paid at origin (Dubai) and not in the importing country. As such, duty paid in Dubai is treated as final duty payment. It is the buyer's responsibility to ascertain and pay all taxes due.

Geneva
VAT of 8.0% is added to the hammer price and to the premium. This tax is refunded to buyers domiciled outside Switzerland upon receipt by Christie's for each object of an export declaration stamped by Swiss Customs. This refund is recovered by Christie's from the Swiss Fiscal Authorities only on presentation of the stamped declaration. The Authorities will not entertain a claim without presentation of this form duly stamped by Swiss Customs. The total amount obtained by adding to the hammer price the buyer's commission and VAT shall constitute the purchase price for the purposes hereof.

For Wine

The premium rates of 22.5% of the hammer price in New York and Hong Kong and 17.5% of the hammer price in London, Paris and Geneva remain unchanged.

Effective for sales beginning on or after 19 September 2016.

All rates quoted below exclude local sales taxes.



CHRISTIE’S BUYER’S PREMIUM SCHEDULE FOR WINE
Saleroom Threshold Rate
New York/LA No threshold 22.5%
London No threshold 17.5%
Paris No threshold 17.5%
Geneva No threshold 17.5%
Hong Kong No threshold 22.5%
Shanghai No threshold 22.5%


Online Sales

For online sales conducted in currencies other than USD, Christie's will apply the Buyer's Premium rate associated with the sale site conducting the auction.



Christie’s Bids Department

If you still require further assistance while registering to bid, please contact the appropriate Bid Department using the information provided below:

 

Amsterdam
Tel: +31 (0)20 575 5258 / 5950
Fax: +31 (0)20 575 5974
bidsamsterdam@christies.com

Dubai
Tel: +44 (0)20 7839 9060
Fax: +44 (0)20 7389 2869
bidsdubai@christies.com

Geneva
Tel: +41 (0)22 319 1766
Fax: +41 (0)22 319 1767
bidsgeneva@christies.com

Hong Kong
Tel: +852 2978 9910
Fax: +852 2973 0136
BidsHongKong@christies.com

London, King Street
Tel: +44 (0)20 7839 9060
Fax: +44 (0)20 7389 2869
Bidsuk@christies.com

London, South Kensington
Tel: +44 (0)20 7839 9060
Fax: +44 (0)20 7389 2869
Bidsuk@christies.com

 

Mumbai
Tel: +44 (0)20 7839 9060
Fax: +44 (0)20 7389 2869
BidsRegistrationMumbai@christies.com

Milan
Tel: +39 02 303 2831
Fax: +39 02 3032 8369
bidsmilan@christies.com

New York, Rockefeller Center
Tel: +1 212 636 2437
Fax: +1 212 636 4938
bidsus@christies.com

Paris
Tel: +33 (0)1 40 76 84 13
Fax: +33 (0)1 40 76 85 51
bidsParis@christies.com

Shanghai
Tel: +86 (0)21 6355 1766
Fax: +86 (0)21 6355 1767
BidsShanghai@christies.com

Zurich
Tel: +41 (0)44 268 10 16
Fax: +41 (0)44 268 10 11
bidszurich@christies.com

 

 

Droit de Suite – the Artist's Resale Right

In some countries, including those in the EU, local laws entitle the artist or the artist’s estate to a royalty.

Droit de Suite is a royalty payable to a qualifying artist or the artist's heirs each time a work is re-sold during the artist's lifetime and for a period up to 70 years following the artist's death. Royalties are calculated using a sliding scale of percentages of the sale price.

The rates, qualifying criteria and the person responsible for paying the royalty may vary from country to country. Clients should carefully check for further information in the Conditions of Sale at the back of the sale catalogue, the terms of any online only auction, any private sale agreement and, for France, the auction seller’s agreement.

Financial Arrangements Explained

To address the particular needs of Sellers and in order to ensure that Christie’s is able to offer the best selection of works for sale, Christie’s sometimes enters into special financial arrangements with Sellers, subject to local law requirements. They are offered in response to a demand from our Sellers, including trustees, private clients, foundations and charitable institutions, for certainty around the realisation of their art works’ value. While these arrangements are put in place for the benefit of the Seller, in the interests of transparency, we want to make sure that all our buyers are aware of their existence and understand how they work.  

Guarantees

What is a minimum price guarantee?

Some Sellers require a measure of certainty around the value of the assets they have consigned to us for sale. In such cases, Christie’s will sometimes agree to guarantee to the Seller that whatever the outcome of the auction, the Seller will receive a minimum sale price for the work. This is known as a minimum price guarantee.

How does a minimum price guarantee work?

While each such arrangement is individually negotiated between the Seller and Christie’s, the structure of minimum price guarantees is typically as follows:

If the lot sells for less than the minimum price guarantee, Christie’s is obliged, in addition to the hammer price, to pay the Seller the difference between the hammer price it sold for at the auction and the minimum price guarantee.

If the lot fails to sell at all, then Christie’s will become the owner of the lot and is obliged to pay the Seller the minimum price guarantee.

The possibility of a work of art failing to sell or selling below the minimum price guarantee is a financial risk. As a reward for taking that risk, if the lot sells for more than the minimum price guarantee, Christie’s receives a proportion of the excess.

How do I know if a lot is subject to a minimum price guarantee?

Lots which are subject to a minimum price guarantee are marked in the catalogue with a º symbol.

Third Party Guarantees

What is a third party guarantee?

Giving a minimum price guarantee to a Seller means that Christie’s is at risk of making a loss, which can be significant, if the lot fails to sell. It therefore sometimes chooses to share that risk with a third party – which may be an institution, an individual or another art market professional. In return for the third party agreeing to share that risk, Christie’s agrees to pay the third party a fee.

How do third party guarantees work?

Typically, the risk of the loss is shared between Christie’s and the third party by the third party agreeing, before the auction, to place an irrevocable written bid on the lot. This is called a third party guarantee. The third party is therefore committed to bidding on the lot and, even if there are no other bids, buying the lot at the level of the written bid unless there are any higher bids. In doing so, the third party takes on all or part of the risk of the lot not being sold. Given that third parties often make this commitment well before the auction date, and therefore take the risk that by the time of the auction, the demand for the artwork – and therefore its value – may have declined, Christie’s will pay the third party a fee for taking on that risk.

On the day of the auction, some third parties will choose to bid on the lot over and above their irrevocable written bid. In this case, they are required to inform us, and the auctioneer will, before offering the lot for sale, make a saleroom announcement that the third party will be bidding so that other bidders are aware that someone with a financial interest may be bidding on the lot.

How is the third party paid for sharing the risk of the minimum price guarantee?

In return for sharing the risk of a loss, Christie’s will pay the third party a fee, sometimes calculated as a fixed sum, the amount of which depends on the nature and extent of the risk being taken. That fixed sum will then be payable by Christie’s to the third party following the sale whether or not the third party is the successful bidder.

Christie’s and the third party can also agree to a fee calculated on a sliding scale linked to the hammer price – but a fee linked to the hammer price will be payable only where the third party is not the successful bidder.

What does the third party pay if he or she is the successful bidder?

If the third party is the winning bidder – whether through their written bid or a bid in the room – the third party will be required to pay the whole hammer price and the whole buyer’s premium.

Any financing fee paid to the third party is a separate transaction to the sale, reflecting the risk the third party has taken in relation to the minimum price guarantee. That fee can be netted off against any money the third party guarantor owes Christie’s, whether with respect to the particular sale of the lot or with respect to other transactions.

How do I know if a lot is subject to a third party guarantee?

Lots which are subject to a third party guarantee are marked in the catalogue with a º ♦ symbol.

Other Arrangements

Christie’s may enter into other arrangements not involving bids. These include arrangements where Christie’s has given the Seller an Advance on the proceeds of sale of the lot or where Christie’s has shared the risk of a guarantee with a partner without the partner placing a written bid or otherwise participating in the bidding on the lot. Because such arrangements are unrelated to the bidding process they are not marked with a symbol in the catalogue.

Bidding by parties with an interest

In any case where a party has a financial interest in a lot and intends to bid on it we will make a saleroom announcement so that other bidders are aware that they may be bidding against someone with a financial interest in the outcome of the sale of the lot. Such financial interests can include where beneficiaries of an Estate have reserved the right to bid on a lot consigned by the Estate or where a third-party guarantor or a partner in a risk-sharing arrangement has reserved the right to bid on a lot and/or notified us of their intention to bid.

Please note that the availability and terms of these arrangements may vary according to local law requirements.

Agents & Consultants

In order to secure consignments of property and identify private sale and auction sale opportunities, Christie’s sometimes consults or seeks assistance from other art market professionals or third parties. We may also enter into partnerships or risk sharing arrangements with, or pay Introductory Commission to, third parties. In such cases, Christie’s imposes a legal requirement on the third party to disclose their financial interest or relationship to anyone they are acting as agent or adviser to. If you are represented or advised in any transaction you should always ask your representative or adviser to confirm whether or not they have a financial interest in the transaction. If you are in doubt please contact us.

Christie's Anti-Money Laundering Programme

Christie’s takes compliance with anti-money laundering (AML) legislation very seriously and has a robust global AML Programme which is managed by a dedicated Compliance Team. The Programme includes due diligence procedures, sanctions and high risk screening, transaction monitoring and all staff training on how to detect and deter money laundering. Christie’s and its employees are required by law to report suspicious activity to the relevant authorities.

All third-party payments are referred to the AML team for review and either rejected or cleared based on due diligence carried out in relation to the third party making the payment. Christie’s applies cash payment limits at all of its sale sites.

Christie’s AML Programme is subject to regular audit to ensure the proper functioning of all procedures. This is done to protect our clients and Christie’s interests.