Both are suitable for situations where the buyer is not ready to buy the property using bank financing. The major difference is that in a Contract for Deed agreement the buyer usually takes possession of the property as if they bought it. For example, the buyer is often responsible for maintenance, insurance and taxes. Whereas in a Rent to Own Agreement, the buyer is like a leasee and the owner is usually responsible for larger maintenance issues and property taxes. Similarities include that the contract may be canceled for nonpayment or if the seller experiences a foreclosure.