He advised the tenant to walk around the outside of the house and look through the windows.

Is it even worth the trouble or expense of obtaining legal advise? 

To speak further and more intimate about this matter I'd refer @Philip Ganz who can best advise you on the terms.

Any advise on how I can start this process for her or any other options I have?

Any advise would be appreciated. 

Little worried, please advise.

Whether it will actually benefit you is another story, and that comes to the next part of your question:As for who should create or advise on the entity: creation should be left to the lawyer, although the accountant may provide insight into the structuring of entities.

Or add 2k to the loan closing cost and get the lower interest rate at 3.25.Please advise, thank you!

Speak to your CPA to advise on buy sell tax provisions.

I advise very strict accounting and no less than weekly meetings to ensure everyone stays on the same page.