There is a difference between a house and a home. A Palace is not a place to live, though a Noble may live in one. A Palace is a place with such an intimate emotional connection to a Noble that her magic works better there than anywhere else. At one dot, a Palace automatically has the Consecrated Condition, which lasts indefinitely just so long as the Noble's emotional connection to it remains strong.
Something odd happens to some Palaces, when its mistress deliberately associates her domicile with her mundane self and avoids associating it with her Transformed self. The effects of her Dual Identity seeps into her home, preventing others from connecting it to her transformed identity. At two or more dots, any attempt to find the location of the Palace when searching for the home of its mistress’ transformed identity takes a penalty: -1 at two dots, -2 at three dots, -3 at four dots. Searching for her mundane identity’s home takes no penalty. Anyone inside the home suffers the same penalty on Perception rolls to notice evidence of the Noble's double life. This is not infallible; a -3 penalty is not enough for her to greet guests in full Regalia, and though she might get away with leaving her magic wand on her desk, don’t risk it. Attempts by Dark creatures to locate anyone using powers from the Light in the Palace also take the penalty.
A Palace may also be a Safe Place [CofD 54], storage for a Library [CofD 46] or Esoteric Armory [CofD 139], comfortable housing or a workshop for a trade, or any combination of those and similar things, but those Merits and equipment are bought separately.