In this scenario, the potential homeowner retains the option to buy the home but without the actual obligation. The Borrower gains equitable interest in the home with a down payment while also making regular, monthly rent payments. At the end of the lease term, he/she has the option to pay off the remaining balance through a refinance. On the other hand, the Buyer can also protect their options by recording the lease which will cloud the title, thus making it difficult for the Seller to sell it to someone else.