What are the key components of due diligence before acquiring a work?

• A. Provenance, condition, authentication, market history, legal status, risk analysis, insurance.
• B. Only the title and artist's birth year.
• C. Only the shipping method.
• D. Only the display location.

Answer: (A)

Due diligence before acquiring a work involves confirming multiple aspects that affect value, legality, and risk. Provenance establishes a traceable history of ownership, helping verify authenticity and reveal any gaps or dubious claims. Condition assessment looks at the current physical state, potential conservation needs, and how that affects value and insurance costs. Authentication is about expert verification of the artist and the work’s creation, which is crucial to avoid misattribution. Market history examines past sales, price trends, and liquidity, informing how the work might perform over time. Legal status covers clear title, any liens or claims, export/import rights, and copyright or cultural property concerns that could complicate ownership or transfer. Risk analysis weighs the likelihood of issues arising, from forgeries to market shifts, and helps plan mitigations. Insurance ensures protection against damage, loss, or theft during ownership and transit. Taken together, these components form a robust check before committing to purchase.

Choosing only the title and artist’s birth year misses all these critical factors and leaves major questions unanswered. Focusing solely on shipping method ignores value, legality, and risk, while considering only the display location omits provenance, authenticity, and market considerations.