The authenticity of works of art bought at auction is a major factor in delayed or defaulted transactions in China, according to research by Arts Economics. In the case of “Lady Liberty,” for example, it took more than two years from when Ms. Wang first learned about the painting until she received payment on her Chinese bank account. For example, China Guardian, the country's second largest auctioneer, gives no guarantee or warranty on bought lots. Most auctioneers outside China, verify a lot is genuine before it is offered and will refund buyers if the work is later found to be counterfeit.
The authenticity of works of art bought at auction is a major factor in delayed or defaulted transactions in China, according to research by Arts Economics. It is not simply a reluctance to pay, as the buyer must often determine the genuineness of the lot and prove for themselves it is not a forgery. For example, China Guardian, the country's second largest auctioneer, gives no guarantee or warranty on bought lots. Most auctioneers outside China, verify a lot is genuine before it is offered and will refund buyers if the work is later found to be counterfeit.