<prompt> Human: My father wants to sell me a house he owns on a rent to own basis. The house is valued at 252,000 in a very highly desireable school district. He is offering me to pay 1400 for 15 years and then give me the house. I feel like this is a good deal as Im basically getting a 0 interest rate on a house that has the potential to rise substantially in value. My wife and I have a 8 month emergency fund with no debt, but this increase in rent would put a big dent into our savings abilities. As this is a big decision I am feeling a little cautious though. My main concern is what if something happens in those 15 years and Ive just ended up spending a lot more on rent than I wouldve and dont receive the house. I dont think hed screw me over, but what happens if I decide I need to move in 7 years or he dies and the house isnt left to me. Should we get some kind of contract drawn up? If the housing market collapses and the home loses a lot of value should I try to renegotiate the payments or just cut my losses?  <response>: Some things to consider.Who pays the taxes, maintenance, insurance?Who can terminate the agreement, and for what cause? Do you very any balance back?And the biggest one. If he is sued, goes into debt, or needs long term care the house can be sold to cover these issues, and you legally get nothing.Or, he sells in to you now, loans you the money, and you pay him back. A much safer way for you to approach this.This is also better for him, as far as income taxes go. He gets the gains exclusion. Otherwise hed pay taxes on the rental income, or pay gains taxes on the sale of the house to you after loosing the exemption by not living there for years. 