It doesn't really matter. Terrem and the other shackleborn end up in the Fiery Sanctum and die powering the tree. He could be put back in the oprhanage to be taken later, or taken right away.
It makes the story a little more interesting if Terrem stays around. It helps the party learn about the Shackleborn (once they find the invisble sign) or generate some hatred for the bad guys when Terrem disappears again.
As always, dhelvesdeep is right, but if your party wants to find out more about the boy Terrem, try the "who is(t) Terrem Karathys" thread - sorry for the typo - enyoy ...
yours truly Claremont the Elder, Lord Buckley
I increased his age to 13, and am trying to make him more attractive as a cohort option. I want my party to keep him around and discover his secrets.
I like the idea of having him returned to the orphanage. It makes the PCs wonder whether the beholder is a friend or an enemy. When he appears, he does not claim to want anything other than to take the boy back to where he belongs. If he successfully charmed several party members, they have every reason to believe that he is a friend with nothing but Terrem's best interests in mind. The fact that he is returned to the orphanage seems to support that.
But then again... he has an awfully big toothy mouth.
I like having the group not quite know what to make of him. Just like they don't quite know what to make of Fario. Is he just helpful as he claims... or is he trying to ingratiate himself for some other nefarious purpose?
Shannon