Borbay Studios & Gallery is delighted to introduce the Borbay Equity Pricing Model. The BEPM allows collectors to acquire, and own, an original Borbay painting for 10, 20, or 30% below market rate.
In exchange, Borbay will retain like equity in the painting(s) acquired. The basic terms of this engagement are as follows:
- Overall: When acquiring art under the Borbay Equity Pricing Model, Collector will retain the physical artwork, while Borbay will retain like equity to the percentage paid below the market rate.
- Ownership: Borbay’s equity will remain with the work in perpetuity, unless a buyout is negotiated, and mutually agreed upon, by and between Borbay and Collector.
- Transfers: In the event the work is transferred in any fashion, Collector will honor Borbay’s equity percentage. This includes payment in like percentage for any sales or auctions; insurance payouts for damaged or lost work; or a percentage of the tax benefit gained through any donations or loans.
Here are some Frequently Asked Questions:
Why is the artwork discounted?
Collector receives a discount of 10%, 20%, or 30% below market rate. In exchange, Borbay retains like percentage of Equity Ownership in the work. The allows Collectors to enter at a lower price point, and affords Borbay a meaningful stake in his growing market.
How does this Equity model work?
Borbay owns a fractional share of the artwork itself, while Collector retains the physical artwork. Borbay’s equity remains attached to the artwork permanently, unless a buyout is negotiated and agreed upon by both parties.
Can I resell or transfer the artwork?
Yes — but only with Borbay’s written approval. This ensures transparency, maintains provenance integrity, and protects both parties.
Will I have to share sale proceeds?
If the work is sold, Collector and Borbay will receive proceeds proportional to their ownership interest; unless a buyout has been agreed upon prior to such transfer.
What happens if I donate the artwork?
The Artist’s ownership interest remains attached. The new owner must sign documents acknowledging the equity structure. If the donation affords any tax deductions, Borbay will receive a proportionate deduction.
Is selling below market in exchange for equity normal in the art market?
Fractional ownership models are increasingly common, and align with Borbay’s belief in, and desire to, directly benefit his evolving presence in the global art market.
Does this affect display, storage, or insurance?
Collector maintains full custody and responsibility for storage, display, and insurance at their own expense.
Can the Artist exhibit or borrow the artwork?
Borbay contractually retains the right to exhibit any artwork sold, at no expense to Collector.