“A lot of them are activists, a lot have mental problems though they’re not crazy,” says Bailey. “The really rich ones are spoiled. They usually talk too much and they’re people who like fighting. They don’t really see reality like everyone else does.”
Bailey notes that most cases settle out of court.
Typically, owners agree to sell within six months, and the board agrees to relax its approval process, rejecting a sale only if the financials aren’t strong enough. If the owner is unable to sell for a certain price, he or she might be allowed to rent the apartment to someone else for a period of time.
It usually costs around $5,000 to reach a mutually agreeable exit strategy, says Bailey. When cases go to court, legal fees can range from $20,000 to $150,000.
If the owner loses in court, he or she “always ends up paying my legal fees, which we collect at the closing,” says Bailey. That prospect alone can help persuade an owner to turn in the keys and move right along.
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