ok so for the ELI5 answer:
Imagine you live with your extended family on a big farm. Across the forest there is another huge extended family living in a big farm.
To make it easier to talk to one another, both families agree to build a cottage for the other among them. That place would be fully considered theirs.
When your grownups want to talk about important stuff, they can just visit the little house your neighbors have in your farm, instead of having to travel across the forest.
If there is a dispute about the fence dividing your property; how to use the shared river stream; your teenage brother getting drunk when visiting his gf at the neighbors; so on. Rather than have your father travel to talk to their father, instead your dad can talk to the neighbor’s uncle that lives on your farm who represents his family.
Then there are a ton of other administrative functions for your neighbors who decide to come live on your farm, that is covered by the consulate
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