Basics of Rent-to-Own? Family member being too generous.

[Jonathan H.]

Can someone explain to me the basics of a Rent-to-Own agreement?

I have a family member who is sometimes too generous.

They have a friend who does not have the credit, nor the money for a down payment on a house.

My family member wants to put both his and their friend's name on the title, and put the down payment on the property himself.

I suggested that my family member just BUY the house themselves, then put this person on a rent-to-own agreement.

Then I realized I dont know anything about rent-to-own agreements.

How do they work?
What is the basic idea with it?

Im trying to convince him its a bad idea. That he is basically using his funds and his credit to buy a house for this person with no gain at all.

Thanks in advance