by Randy Carey: So, if I rent a house that I live in and negotiate with the landlord to buy it, I still have no ownership in the house, so it would be like any other purchase transaction.
1026.23(a) Consumer's right to rescind. (1) In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction
by Richard Insley: Randy's advice about Reg. Z is correct. You are, nevertheless, free to grant a rescission option that is not required.