So it wasn't a misunderstanding then?

Now I may be misunderstanding your question because you may just be buying turnkey and not through a turnkey company. 

@Varun Parkash Unless I'm misunderstanding, you will not be saving $300 in P&I -- If you are refinancing 10 year arm @ 2.5%, your payment will increase substantially.

Put it in writing because you don’t want to lose a friend over a misunderstanding.

Am I misunderstanding something?

Or am I misunderstanding the process? 

And maybe I’m misunderstanding your argument. 

License plate searches are not really needed and can be costly and ultimately will take you back to the same info you can get from searching the property owner name and property address.Or did I misunderstand your question?

Hope this can help clear up any misunderstandings.

there are different items that people call in rent to own: 1) rent with option,  where you buy a home all at your costs then rent to him, the down payment is negotiable and works like any escrow deposit with terms you both agree to , both contract are separate(rent,sale option), basically locking in sale ahead of time, 2) rent to own is usually part of the rent gets credited to the sale, rent must be within a market value, say rent is $800 and 300 goes toward sale, both these require buyer to get their own mortgage within a time frame, say 5 years to perform 3) is owner seller financing which is what it sounds like they want, if you are specifically buying a home with them in mind to pay you back a set rate each month, not a home you already have for sale       each way has pluses and minuses,  dodd-frank depends on how many you do each year and how it is set up,  the first two you are their landlord(maintenance on you), the third you are their financier, decide which idea you like better and check with your attorney which puts you in less liability,    another option might be a loan for the deposit on his purchase as a lien on house, but be careful of money between friends or family, make sure no misunderstanding put it in writing