From the Patch Notes:
You can place each object at any location and at any angle. The only limitation beyond the Furnishing caps is there is a small safe area near the main entrance which cannot be filled with items.
Note that certain furnishings such as chairs and crafting stations may not be usable if placed at an unusual location or orientation (you’ll know if an item is placed in a bad location if it highlights red).@ZOS_GinaBruno
I do not consider having a chair set out on the beach to be an 'unusual location' especially if you want to sit and listen to the ocean. I just purchased the Hunding's Palatial Hall and put a chair out on the beach, and I cannot use it there. I really think the devs need to look into this and realize that players WANT TO sit on the beach and enjoy their property, this isn't something 'unusual'. The chair did not turn red, so it isn't even in a 'bad location'.
CP: 2078 ** ESO+ 2025 Content Pass ** ~~ ***** Strictly a solo PvE quester *****
~~Started Playing: May 2015 | Stopped Playing: July 2025~~