A 16th-century Madonna and Child painting by Antonio Solario stolen from an Italian museum more than 50 years ago recently made headlines after it resurfaced in the Norfolk home of a late aristocrat’s wife.
Barbara De Dozsa’s late former husband had bought the painting in 1973 in good faith after it was, unbeknown to him, stolen from Italy’s Civic Museum of Belluno that same year. De Dozsa has repeatedly refused to return the painting, which is listed on stolen art databases, despite interventions from art lawyers.
She cites the Limitation Act 1980 which reverts ownership to the buyer after six years, provided the purchase was ‘unconnected to the theft’.
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The case highlights the legal precarity of purchasing high-value art and other trophy assets. The UK art market is currently rated as ‘high risk’ for money laundering by the Treasury, and HNW art collectors are exposed to several pitfalls, from ownership – as the Norfolk case highlights – to authenticity and the correct paper trail.
Experts Natalia Faekova and Gemma Broughall from Taylor Wessing‘s Disputes and Investigations team explore the most pressing questions regarding stolen artworks.
Legal risks in art acquisition
The two main legal risks when acquiring art relate to title and authenticity, Faekova explains. Firstly, title issues – if an artwork is purchased from someone who does not have legitimate ownership, such as a thief or a handler of stolen goods, the buyer does not acquire legal ownership at the point of sale. This remains true even if the purchase is made in good faith and at full market price.
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Secondly, authenticity concerns. An invoice stating an artwork is by a particular artist does not guarantee its authenticity, Faekova tells Spear’s. In disputes, courts will examine the entire course of dealings to determine if authenticity was a contractual term.
What is the Limitation Act 1980?
Barbara de Dozsa believes she is the rightful owner of Solario’s Madonna and Child under Section 3(2) of the Limitation Act 1980 that states that an original owner’s title to an artwork is extinguished six years after a good-faith purchaser acquires it.
‘In any ownership dispute, establishing good faith is crucial,’ Faekova tells Spear’s. ‘Demonstrating that you conducted thorough due diligence which revealed no suspicious circumstances, will significantly strengthen your position. The thief and any subsequent bad faith purchaser can never acquire good title.’
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Carry out due diligence before purchasing art
‘Never rely solely on a seller’s reputation – even respected galleries and auction houses can sometimes (perhaps unknowingly) handle counterfeit or stolen objects,’ warns Broughall.
The level of due diligence required varies based on the artwork’s value and the presence of any ‘red flags’ at purchase, she explains. This would include verifying provenance through resources such as the International Foundation for Art Research’s (IFAR) provenance guide, which has links to INTERPOL’s database of stolen artworks, the Art Loss Register and to databases administered by the German Lost Art Foundation, which lists works of art looted by the Nazi regime during the Second World War.
‘Be wary of sellers who are reluctant to show evidence of provenance, for example, citing confidentiality or privacy of previous owners, since this may be evidence of questionable (or at worst, complete lack of) provenance,’ Broughall explains to Spear’s.
She also urges art collectors to be aware of fake provenance documentation.
‘If there is any doubt about the authenticity of a document, consult an expert. Alternatively, consider hiring a professional company that specialises in art due diligence research. There are several such companies on the market,’ she advises.
Broughall suggests collectors consider art title insurance.
Legal consequences of purchasing stolen art
Within six years of a good-faith purchase, the original owner can sue for conversion, says Faekova.
This strict liability tort means the buyer may have to return the artwork or compensate the original owner. The buyer can, in turn, seek reimbursement from the seller. After six years, the good-faith buyer acquires good title. The original owner can still seek damages from the thief or any bad-faith purchasers, but ‘before going after the seller, consult a lawyer to assess your options,’ says Faekova.
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Cross-jurisdictional challenges
Different jurisdictions handle stolen property claims differently.
Faekova says: ‘English courts will apply the lex situs, the law of the country where the artwork was located during its sale. This means that if an object stolen in England is taken and sold abroad in a jurisdiction which allows title to pass to a good faith purchaser, the original owner’s title is extinguished upon purchase.
‘This is so even if the object is subsequently returned to England before the expiration of the English six-year limitation period.’
Contractual protections when buying art
A well-drafted purchase agreement can protect buyers from legal pitfalls. Broughall says essential clauses include:
- Authenticity guarantee: Ensuring any claims of authenticity are explicitly included as warranties.
- Full title guarantee: Explicitly stating the seller’s right to sell the artwork.
- Governing law & dispute resolution: Establishing jurisdiction and preferred resolution methods (e.g., mediation or arbitration).
- Confidentiality: Allowing necessary disclosures for insurance, resale, and valuation purposes.
- Commission transparency: Clarifying payment terms for intermediaries.
- Liability caps: Defining financial liability limits in the event of disputes.
Red flags in art transactions
Broughall says buyers should trust their ‘gut instinct’ and look out for red flags including prices that seem too good to be true, lack of provenance documentation. high-pressure sales tactics, requests for non-standard payment methods such as cryptocurrency or antiquities with vague or missing pre-1970s provenance, as they may have been looted.
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Seek professional advice
Engaging an art lawyer or investigator before finalising a purchase is recommended, particularly for high-value acquisitions. Experts in provenance research, forensic authentication and insurance can help verify authenticity and protect investments.
If an artwork’s authenticity is questioned after purchase, what legal recourse do I have?
If authenticity is disputed post-purchase, buyers may have legal claims for:
- Breach of authenticity guarantee: If provided in the purchase agreement, though typically subject to time limits and expert consensus.
- Misrepresentation: If the seller knowingly provided false information or negligently misrepresented facts.
- Negligence: If the seller had a duty of care and failed to meet professional standards.
UK anti-money laundering obligations
Buyers must comply with AML requirements, particularly for high-value transactions, while art market participants, including dealers and auction houses, must conduct customer due diligence (CDD) for transactions, Broughall says.
‘If the transaction poses a higher risk (e.g., large sums involved), more stringent checks are necessary, and you may be asked for additional information on the purpose of the transaction and source of funds and/or source of wealth.
‘Where the artwork is being bought through a corporate entity, information and official corporate documents will need to be provided, including information as to the ultimate beneficial owner (i.e. the individual(s) that are shown as beneficial owners/natural person with significant control in the company at the top of the chain).’
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What does a buyer do if an artwork’s origins are suspicious?
Broughall recommends gathering documents and evidence before contacting the seller to discuss provenance concerns. Check databases such as the Art Loss Register, and if necessary, seek legal advice and notify law enforcement authorities. If the dispute crosses borders, then negotiation and alternative dispute resolution (ADR) methods like mediation and arbitration are preferred over litigation, as court proceedings can damage an artwork’s future marketability.
