Hi, I've spent a few hours reading old posts here, and articles on other sites about buyouts.
I am aware buyouts are often not attractive to rent stabilized tenants, given how much rent over decades I'll be spending if I move and give up this good rent. I am aware of lawyer fees (i've read 18% up to 1/3, 1/3 is often said on this website) & taxes - online articles over and over say buyouts are taxed as ordinary income, yet here I keep seeing people saying it's capital gains. Can find out more about that and how to shelter it from taxes, if possible.
Landlord attorney let me know they are interested in talking to me about a buyout. I said I had to speak with my lawyer.
I don't live in a hot apartment or hot neighborhood, this is not a 1 million payout situation.
Here are my questions:
1. I think i would have more leverage if I knew exactly why they were asking to buy me out, to determine how strong is their motivation. Are there ways to find this out? A few things happened immediately preceding this offer, so I am not sure which thing is is triggering their offer. I just wrote, then deleted all the details because i didn't want to overwhelm you but I could share more if you like.
2. I've heard of the best lawyers in NYC to handle such a thing. I've also read, separately, it is possible to ask lawyers to charge you on a per hour basis as opposed to 18-33% of final buyout amount. IS it common to ask for a flat per hour or per task fee or is that the kind of question that will piss off a lawyer? Handing over 30k for a few hours work seems bonkers to me, but then again maybe a lawyer would help me to command a much higher fee. I need to be educated in this regard.
edit: re lawyer fees, I saw here http://tenant.net/phpBB3/viewtopic.php?f=3&t=10270&p=50196&hilit=buyout#p50196 that a member said, "It's pretty easy to find a lawyer who will agree to represent you on an hourly basis instead of a contingency basis as long as you have fees up front- and this is almost certainly the way to go, since unlike in tort-based cases, compensation/success is not uncertain. In fact, this seems to be standard practice (no lawyer quoted me a contingent estimate- all proposed hourly or task-based fees). Estimated fees for representing me throughout the entire process are $750, with a cap at $1500."
3. Would it be wise, or stupid, to ask the neighbors on my floor if they have also received a buyout offer? They met get pissed if I got an offer and they did not & start stuff with the LL. I don't know if that matters. If it turns out they got offers too perhaps we'd have a stronger bargaining power but if they didn't get an offer, I don'tknow if they could do something to make negotiating more difficult.
4. Would I be better off suing the landlord and receiving some sort of settlement for all the incorrigible conditions we've had to live through for years, as opposed to a buyout? I know this is a question for a lawyer and I will ask, I just wonder if you have experience with something like this. I read about Cuomo passing a law making it a criminal offense to harrass tenants the way he's been harrassing us-with jail time as a consequence. i dont know if these lawsuits go anywhere but i am happy to fight him the outcome is likely to be favorable, based on mountains of proof.
I know some of these questions you may not be able to answer, I just thought I'd ask and see if you know of anything that would send me off on a trail.
Thanks, truly, for all of your advice.