For those of you deeply interested in the fine print of auction house reporting, Christie’s has just announced that it will change the way it reports the net price paid for works where a third party guarantor receives a fee for providing a guarantee and then participates in the bidding and wins the lot (which will apply to a only handful of lots each year):
For reporting purposes going forward, in the instance of a third-party guarantor being the successful bidder for a lot Christie’s will publish the price realized inclusive of buyer’s premium and net of any financing fee. These prices will be posted on the Christie’s website in the results section for the relevant sale. While Christie’s views payment of the 3rd party guarantee fee as a separate transaction to the purchase of the lot, we are happy to comply with the DCA’s September 9 interpretation of the applicable regulations.
