The scheme allows tenants to test new home before entering ownership in the sense of comfort, quality of utility systems and services. Within contractual term one may as well make sure if the district, location, accessibility and infra satisfy the needs.
The tenant may initiate contract termination at any time, not the developer. At the same time, the property is allotted to the tenant and the owner has no right to offer it to the third parties so far.
The main idea about the "rent-to-own" concept is to save for down payment. When applying for mortgage normally you need funds amounting 25% of the property cost for the first payment. Upon "rent-to-own" conditions you pay only yearly rent which is converted to building equity.
On mutual agreement between customer and seller the costs comprising rental rates and total value of the deal become locked. That secures from price escalation due to market fluctuations. The transaction is absolutely legal and application process is much simpler and faster, if compared to getting a mortgage loan.