It is true. Yes, it would be a code violation to use the black conductor as the neutral but he is certainly free to do that if he wants to. Who is going to stop him? The point is that there very well may be consequences of varying severity if he does such things. For example a home inspector might advise a prospective buyer that the house's electrical system is in disarray.
well, if we break it down into such simplistic terms then yes, anyone is free to do whatever they want. of course, actions can have consequences. sometimes there is a false belief that since it is your home, you can do whatever you want WITHOUT consequences (e.g. i don't need a permit to work on my home, i can distill for personal consumption, etc.) that's all i was trying to convey.
using your example, a good home inspector would state the home has code violations, not simply 'is in disarray'.