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However, the "edge" of the town does actually expand each time you upgrade the tier of Midhaven. So what looks like it's far enough from the edge of the town "border" will start to overlap. If that kind of thing will bother you then I would place buildings about as far away as the museum/stable is in order to be safe.
I can confirm however, that clipping is a thing that can happen. It won't auto-break the building though as you can clip through and still easily access the interaction point(s) for the building.