What ind of arrangement and document needs to be put into place to protect both parties?  

It was a separate page reiterating the pre-arranged payment milestones with a place for the contractor to sign and date which I kept along with the receipts.

I don't want to be shown as a pushover but I also don't want to be too much of a hardass going into it causing animosity because of the shared living arrangement.

@James Watts - if you can get someone to put the money up under that arrangement you described that would be a great deal for you and reckless for them.

Estate is responsible for rent, make arrangements for mutual lease termination. usually within 60 days.. 

& make arrangements to fix it ASAP.Disposals, ice makers & dishwashers - no!

Also, if you would like to meet up for some coffee while you're in town or see some properties throughout the city, PM me and we can make arrangements.

That could be costly.A good reason to have a property inspected is to use the inspection report to negotiate the price.Some years ago I had an arrangement to pay the home inspector after I purchased the property, but pay him a premium price for inspecting.

@Jackie Lange - you are correct, the title company arranged title insurance and a warranty deed from your borrower to the new owner under false idea. 

If the latter, I know an experienced local property management team that specializes in that type of arrangement.