Peter is considering the purchase of an income property that has four office units and two retail units. All six of these units are currently leased. Due to the high demand for rental space in the submarket, Peter does not anticipate there being any vacancies within the next few years. If Peter decides to go through with the purchase of this income property, he does not intend to make any renovations or modifications to it. Additionally, Peter has been made aware that the income property may contain asbestos. Note that exposure to asbestos can cause serious health problems.

(a) What investment strategy will Peter follow if he purchases this income property?

(b) What is one type of risk that is associated with purchasing this income property?

(c) Why should Peter request an inspection of estoppel certificates before making a decision to purchase this income property?

(d) Instead of buying this income property, Peter decides to enter into a five-year purchase option. What is the advantage to Peter of entering into this purchase option?

(e) If Peter purchases this income property in spite of the inherent risk, what is one step Peter can take to protect himself from any financial loss that may occur?

(f) What must Peter do (if anything) to comply with the warranty of habitability?