my friend is having a problem with regards to the house where they live

My friend is living with his wife. The house where they lived is a low cost housing project administered by a certain religious institution. It is in this religious institution where his wife work. When his wife resigned from her work, the employer which is the religious institution sends them a demand letter that they have to surrender the house since the wife is not working anymore in the said religious institution or they have pay the amount of the house in full. When the wife enter into contract with the religious institution she is not informed that the house will be taken back when she will resigned. Also, there is no provission in the contract that the house will be taken back once the wife will resigned. Is the action of the religious institution legal?

legal or not? its not the issue here. better to review the contract. if that case is clearly written and she signed it? it means she accept the term and condition.