Personally, I do not. But, there are some people, collectors, museums, art galleries and the like that pay a lot of money for art. These art buyers, when you think about it, are investors. They might based part of their art purchase because the art is pretty or enjoyable. Mainly, however, they are buying the piece because the art work is purported to be something of value, such a by a famous artist. Now, it does not take a genius to figure this out. It does not take someone that that has an art fetish. It probably would not hurt, but even the business type lawyer who is interested in investments or authentication or research or investigation will do.
The life of an artist generally is not easy and it is difficult to make a living in the business. There is an old joke, more true than funny, that says a successful art career is based 90% on how much money your parents make, and 10% on who you sleep with. So, what do some burgeoning art students do? Why, they go to law school of course.
For these lawyers there is the art closing niche.
Nobody in this day and age would think about buying a house, land or building without some company insuring title. It is hard to understand why someone would spend what sometimes is many times the costs of a home on art without the same kind of policy. The reason is that buyers of houses, art and other big ticket items want or demand transactional confidence.
An article in Forbes magazine discusses two companies that sell art title insurance. One is Hiscox, a syndicate at Lloyd's of London, which has insured title to paintings and antiquities. The company charges a premium of 0.5% to 2.5%, depending on the risk involved. It charges annual renewals as well.
The other is Aris Title Insurance of New York. The company has a broad range of clients who are art collectors, art intermediaries, financial consultants, insurance professionals, legal advisers, museums and wealth advisers.
So you say, but does this have to do more with insurance than law? Well, no more than a real estate transactional business. It is the combination of insurance, accounting and law when you think about it. Ultimately, insurance is not going to be written without legal opinions, determinations, investigation and research. Combine them as some lawyers do with a real estate title company and you have the ultimate service. It is transactional. Close a $1,000,000.00 purchase and pocket somewhere under $25,000.00 in premium dollar, plus amount for a title opinion, escrow services and the like.
You can read a little bit more about it in Risk & Insurance, the Art Law Gallery, FindArticles, Fine Art Registry, NYU Sterm among other sites.
Look into it more for yourself. It might truly be a way to expose yourself to art, practice law and make some money.
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