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In Adessa, just past the entrance to the city.
While the house is obtained for free there are three upgrades which can be purchased once the Fateless One starts the quest Sandstone Villa. The total cost is estimated to be around 17,000 (Depending on your mercantile level).
After the third upgrade, the task is complete (level-based XP ~1450 at level 33, but no Gold).
- After completing the quest Under Watch, sometimes there are two Henchmen gnomes in the house who will attack you.
- If you have taken a loan and defaulted it and chose to kill the collectors all your transactions will be stopped, that includes the upgrades of your villa. There is currently no known solution.