What's the deal with a "land contract" or lease-to-own?

[evan price]

The former Price compound is being emptied out of the detritus of 15 years of living there and getting ready for marketing. We moved to Casa Price #2 a month ago. In the meantime, one of Mrs. Price's co-workers asked if we were willing to sell it, because she and her husband are country people absolutely fed up with living in an apartment in the city and wanting to move somewhere where the only thing they hear is birds and not the neighbors' bathroom habits and TV.

They came and toured the place this morning and sounded very interested. Only hitch so far is that they have not been married long and don't have much down payment and not much credit. Nothing specifically BAD in the credit, just not much history as they tend to be cash buyers.

They asked me if I wanted to do a land contract with them. I've never done one of these.
As I understand it, it's basically a lease/rent-to-own arrangement for a set time- let's say three years. For that three years they pay...let's say $800 a month as rent. At the end of the three year term, they have the option to buy the house less monies paid as 'rent' in one 'balloon' lump sum (let's say $75,000). The theory here is that they use the three years to build up their credit score and save down payment. If at the end of three years they do not buy, the money goes to rent and we part ways.

What do I need to know about this with regard to pitfalls and red flags and such? IS there a good resource for learning about this? Contracts? I need to not be paying two mortgages but I also don't want to take a bath. And I don't like the idea of taking all the risk of my property if things go TU.
We live maybe ten minutes from the old house so it's not far away.