She needs to see a solicitor, not to do anything until she's take legal advice. There is nothing to stop the pair of them selling the house, but it has to be done jointly IMO, if she signs it over that could be the last she sees of the money.
Are you in the States/Canada, clueless? I guess so from the way you spell "check" - if so the rules may be different there about this sort of thing, we are a UK site.
Wherever you are - tell her she needs to take legal advice, not to be forced into signing anything without it. The story might be quite true but it could be a big scam, ex wanting to get his hands on all the property. is there a mortgage, are both the names on that?