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Easy enough, have a demolitions crew. A group of volunteers that act much like forum mods. They go around and report any housing issues, ask the person to move it, if they don't, the house is flagged by said mod and the players on the relm can do as they with to the sploit house (burn, take town, etc).
I like to keep things in a game, gameish. So we have a bit more to it that that. Above is the simple easy way. Below is the way I would prefer.
You log in, in your inbox is a politely written letter stating you have X hours to move your structure, please move it or you will get a visit from some people that you may not like.
After X amount of hours your screen goes black and you see it's loading. When you come to you see your character tied up in a chair, in a dungeon room with dim light. The Royal SS reads you a statement on why they are about to do what they are and the NPCs promptly kill or beat you unconscious. When you load again your outside your house and it is flagged for demolition (you can pack it asap but so can any other builders).
Thats the first offense.
The 2nd time you get in trouble for the same crime where ever you are in the world suddenly the SS spawn and execute you. When you spawn back in you have been fined, and your home is flagged, this time you can't touch it, other players can. You now have a Scarlett letter by your name for X amount of time telling other players you are a sploiter.
3 strikers, the 3rd time you get in trouble for it. You load into the game and are promptly dispatched. When you spawn back you have a scarlet letter for longer, you can't touch your materials but other can, you can't build another house for X amount of time, and your name has been added to a bounty list.
Should you dare go 4X or more, you get all of the above plus your flagged kill on site by your own relm.
On the other side, if you go long enough without any issues you can get back to first offense status.
Yes? No? Better ideas?