Is it legal for a home owner to sell the home(Owner Financed) with out an inspection and appraisal.?

Situation: Home owner is selling a home and doing owner finance on it. The property is worth a lot less than the selling price. Since they are doing owner finance, there is no appraisal or inspection. Is this legal? On a traditional mortgage, the bank uses the appraisal to determine if they can carry the note. In this situation, the owner is the bank. It seems like they are trying to scam the buyer. Can an atty chime in?