What is Art Consignment?
Definition: In the art market, consignment is a sales arrangement where the owner of a work (the consignor) entrusts it to a gallery, auction house, or dealer (the consignee) to sell on their behalf. The seller retains ownership until the piece is sold, and the consignee takes a commission or fee from the final price.
Consignment agreements include terms such as duration, pricing strategy, reserve price, commission percentage, insurance responsibility, and return policies. These contracts are legally binding and designed to protect both parties.
This model allows sellers to reach broader audiences without upfront fees, while dealers or auction houses benefit from expanding their inventory without purchasing the work outright. Consignment is widely used in secondary market sales and estate dispersals.
