Seller financing and Rent to Own
Can someone explain exactly how rent-to-own work? Is there a notorized promissory note? Does the seller/owner set up the documents through a lawyer and is it like seller financing but first one must rent for a certain amount of time? I assume the owner sets up the rate, payment agreement for the buyer? What happens if a buyer stops paying after a certain amount of time and defaults? I mean is the only trust between buyer and seller to release the property is a written paper document? The seller can anytime rip the paper up and say there was never a deal, and claim it wall all just rent, then the buyer making payments will be screwed?