House ownership involves two main elements, the property deed and the house. The deed is actually the more valuable element and when acquired will come with a house of some sort. The deed is the claim to be a landowner in the game and allows a player to claim a lot and build a house. Once a lot has been claimed with the deed, houses can be constructed and torn down at the player’s whim, for a cost of course, but the player need not fear losing his claimed lot. The player can however choose to unclaim their lot at any point and reclaim their deed. Deeds are NOT tied to the City/Town/Village in which they are sold!  Players can own more than one House at a time .
The Property Deeds are either a Row lot, Village lot, Town lot, City lot, Keep lot or Castle lot. City being the rarest and most valuable, followed by towns and then villages. If someone chooses to, they can use their deed to claim a lot smaller than the one the deed is for; for example, a City deed could claim a town or village lot.
So what is the advantage of being in a larger town or city? There are a number of reasons players will want to be in a big city. First is safety and accessibility. Big towns are more heavily defended and nearly immune to attacks. When the city/town/village your house is in is under attack, you don’t risk losing the items inside but there could be some period of time in which it is inaccessible. You can of course join in the defense of the town to help clear the attackers or just wait until it is safe. 
Houses and their decorations and trophies will be visible to all other players (unless you choose to lock it). We fully expect people to proudly display their exceptionally crafted goods and items from their glorious adventures! What fun is a house if you can’t fully personalize it! 
Fences can be placed around a Village,Town or City lot. As a guide to enclose a lot with a gated fence you will need the following:
- Village - 4x Corner Fence, 1x Gated Fence, 4x Long Fence and 2x Medium Fence.
- Town - 4x Corner Fence, 1x Gated Fence, 8x Long Fence and 2x Medium Fence.
- City - 4x Corner Fence, 1x Gated Fence, 14x Long Fence and 2x Medium Fence.
The 2 Medium Fence items give you some flexibility about where you can place your gate on your lot.
Your house is designed from a prefabricated plan but can be uniquely decorated as you would like. There are different size houses that fit on the same size lot so keep in mind your decorations and design plans prior to selecting a house.
There are three ways to purchase a house. Backers at Citizen level and above receive their house(s) with their pledge (which are exclusive). Players can also purchase houses in the game through earned in game currency. Finally players can purchase houses from the Add-On Store (which are exclusive).
Your basement is designed from a prefabricated plan, but can be uniquely decorated as you would like. There are multiple basements that fit beneath each size of lot, so consider your decorating and design plans before selecting a basement. Basements can be used on waterfront lots.
There are three ways to purchase a basement. Backers may receive a basement with their pledge (which are exclusive). Players may also purchase basements in the game using in-game currency. Finally, players can purchase basements from the Add-On Store (which are exclusive).
Current plan for house permissions is Kindred, Guild, Friends, Open. "Locks on doors would be cool but not final for Ep1 just yet"-
All lots are set to public permissions by default, which means other players can enter your lot but cannot decorate it.
Are allowed to enter the lot, but not modify items on the lot.
Are can modify items on the lot. They can also move or take any decorations on the lot, including those placed by the owner.
While they are also able to modify items, move or take any decorations on the lot, including those placed by the owner, they can also modify the Guest and Kindred permissions lists.
Did we miss something? SotA's site has an FAQ that might answer your question: https://www.shroudoftheavatar.com/?page_id=19#faq_52
Portalarium's House Decorating demo and The Mad Hermit's Housing Guide:
- Backer Houses
- Episode 1 Housing Selection Order
- Castle Level Housing
- Keep Level Housing
- City Level Housing
- Town Level Housing
- Village Level Housing
- Row Level Housing