During your first encounter with the Warlock you must be defeated by her (loose a fight or simply beg/surrender). If you overpower or defeat her she'll be gone upon checking the manor again.
If you've done it right each time you visit the manor from now on you'll see a repeating scene with different story/text, possibly choices depending on which of the 3 penalties you've chosen (2nd is my favorite).
Worth to mention that 3rd option will make you unable to top from now on. Also if you have some high lvl slutty traits (cock lover 3 I think) whole thing will end in game over screen.