Yes it does touch the edge but some information you're not aware of is the fact the the balcaony tiles are not affected directly but indirectly.
When a tiles height is affected by using the level terrain tool on tiles that aren't on ground level with the 'constrainfloorelevation off' cheat on then all the tiles directly above it on the upper floors are also affected.
Since this balcony three stories up is the only floor that has tiles all the way out to the edge of the lot it's not readily apparent which floor is the first floor affected so through some testing I was able to determine that it is in fact the foundation level that is the first floor affected and it has no tiles on the edge of the lot which lead me to conclude that Twinmum is correct and I left 'constrainfloorelevation off' on and saved it that way.
That's the risky thing about these cheats. You have to be diligent about turning them off before saving. You can remember to turn them off a thousand times and the one thousand and first time you forget it comes back to haunt you.
Edit: hmmm, I just tried deleting the foundation walls (the ones I made with regular walls shortened to founation hieght with the constrainfloorelevation trick) directly under the balcony and replaced them with actual foundaion blocks then turned off all cheats and saved to libraray and that didn't help either. The balcony still gets stretched as well as all the squares directly beneath all the way down to the foundation. Those lower squares have nothing on them so they don't matter except for the fact that they affect the balcony.
what to do... what to do...
Second Edit: Actually, Thinking more about it I now think you're both right. We all know the level terrain tool doesn't work on ground level tiles on the edge of the lot because the terrain just outside the lot can't be altered to match. This is half true for every floor above. While the level terrain tool does work on tiles above ground level at the edge of the lot the height of a given floor level (in this case third story level) just outside the lot can't be altered to match so when placing the lot the game tries to match the height of
ALL edge tiles at every story height (not just the ground level ones) which means I may not have forgotten to turn off the cheat after all.
If I'm right then I have only two options...
1. Delete that edge row of tiles on the balcony and just put the railing straight across right on top of the third story outer wall which would look as good in my opinion.
2. Post some instructions with screenshots on how to fix the stretching after placing it on a lot when I upload it to the swap shop.
Any one have any opinions on which you'd prefer if you're planning to downlad?