Terms and Conditions
Tehran Auction is a cultural/economical endeavor in response to the increasing interest in art and a unique opportunity to acquire the highest quality modern and contemporary Iranian art in a secure and pleasant environment. The organizers of Tehran Auction, herein referred to as “auctioneers” or “auction house,” are determined to offer their expertise in gathering and presenting high quality artworks to the art enthusiasts.
Tehran Auction acknowledges the significant role the artists and collectors have played in promoting Iranian art and heritage. Below are the general terms and conditions of the auction.
- Auctioneers select artworks based on their qualitative value and collectors’ interest. The works are offered at an estimated price approved by the owner. Artworks will be on display for public viewing at the Esponas Palace Hotel in Tehran for two days followed by the auction event on the evening of the third day.
- During the auction event, artworks are offered by the lot numbers and in the order they appear in the catalog. The final price of a piece is determined by the sound of the auctioneer’s hammer, after which no higher bid is accepted. The buyer does not pay any additional fee.
- Only registered participants who have obtained a bid number are allowed to take part in the auction. There is no limit in the number of pieces one can purchase, however, the owner or seller of a piece is not allowed to bid on that piece.
- The auction house in neither the owner nor the seller of the artworks. It merely has permission to sell the artworks on behalf of the owners. No transfer of ownership takes place between the owner and the auction house. The auction fee is solely for the purpose of preparing for and conducting the auction and to facilitate the transaction between the buyer and the seller.
- Buyers can purchase artworks in one of the following manners:
- Bidding in person: Fill out the registration forms and obtain a bid number to participate in person
- Bidding by telephone: Fill out the registration forms prior to the auction, and bid over the phone during the auction
- Absentee bidding: Fill out the registration forms and authorize an auction staff to bid and attempt to purchase on his/her behalf and up to a ceiling amount set prior to the auction
- Based on the owner’s agreement, auctioneers set a low and a high estimate (reserve) for each piece. The initial bidding amount usually starts below the lower estimate and raises at the following intervals:
- Up to 200 million IRR
- Over 200 million up to and including 500 million IRR
- Over 500 million up to and including 1 billion IRR
- Over 1 billion up to and including 2 billion IRR
- Over 2 billion up to and including 5 billion IRR
- Over 5 billion up to and including 10 billion IRR
- Above 10 billion IRR
- by 10 million IRR
- by 20 million IRR
- by 50 million IRR
- by 100 million IRR
- by 200 million IRR
- by 500 million IRR
- by 1 billion IRR
- Upon the owner’s approval, the auctioneers set a confidential minimum price (reserve) below the lower estimate. The auctioneers are allowed, on behalf of the owner, to sell the piece at that price or higher. In case a reserve is not set, the auctioneers are allowed to sell the piece at the lower estimate or higher.
- The auction of a piece ends with the highest bid as hammered. The bidder is obligated to purchase the piece at the hammered price. If the bidder refuses to pay by the set deadline, he or she is legally responsible for all incurred losses to the owner and to the auction house.
- The buyer is required to pay the full amount within two weeks from the auction. Payment may be made by a personal check or by a direct deposit into an account provided by the auction house, which receives the funds on behalf of the owner. After the receipt of the payment, the artworks will be delivered within a week, if in Iran, or within two weeks if outside Iran.
- The owner is obligated to pay the auction house a fee for presentation and sale of the artwork. The fee will be deducted from the hammered price and the balance will be paid to the owner. The fees are as follows:
- For sales of up to 1 billion IRR, 20% of the hammered price
- For sales over 1 billion IRR up to and including 5 billion IRR, 18% of the hammered price
- For sales over 5 billion IRR up to and including 10 billion IRR, 15% of the hammered price
- For sales over 10 billion IRR, 12% of the hammered price
- Payment of taxes or other legal expenses that incurred as a result of the auction is the responsibility of the seller and the buyer. The auction house is under no obligation to pay such expenses.
- The owner is responsible to pay a fee of 2% of the hammered price for storage and for insurance against transportation accidents and fire.
- If the artwork is unsold, the owner is obligated to pay the insurance fee and any other costs such as restoration or framing.
Tehran Auction Owner/Seller