when Laeral became Open Lord of Waterdeep she reversed Neverember’s policy of allowing noble titles to be bought. SCAG also mentions she restored titles to those who lost them. Was this done by seizing the estates/lands of the nouveau riche and giving them back? No. She restored titles.
Waterdhavian noble titles aren't feudal, or otherwise tied to places/lands/castles/armies.
SOME outlying farms northeast of the city that had been abandoned by the new title holders were formally given back to the restored title holders.#Realmslore
— Ed Greenwood (@TheEdVerse) October 6, 2020