Contract for Deed vs. Rent to Own

(My Original Blog Post: http://ping.fm/Y0gVh)
What are the differences from a Rent to Own and a Contract for Deed? Without me getting into a full rent to own article here, as a general rule a rent to own, gives you what's called an "option". The option gives you the first right of refusal to buy the property.  This means the buyer can buy on a rent to own, but doesn't have to, the seller does have to sell on a rent to own if the buyer wants to with buy and exercise the option. It's a one way contract also known as a unilateral contract.  In addition, the rent to own usually takes far less money down than a contract for deed would, maybe a little less paperwork, and a rent to own is simply the option to try to purchase at a later date.  A contract for deed is a sale of the property, and usually requires a pretty good size down payment, and probably recommended an actual closing at a title company or attorney's office when doing a contract for deed.  Contract for deeds are going to put tax write-offs on the buyer's side of the equation, whereas rent to owns are going to keep the full ownership and tax related info all on the seller's side.