I think there is a decent amount of lag involved.

On the Client I can run into a house but can't interact with items or vault. After a while the server teleports you back to the position where it thinks the player is.
(Normally right next to the entrance of the house).

Very easy to reproduce when running through the woods. It will reset you to a tree your character seemed to hang on the server.

Timestamp: ca. 22:45 CEST
Username: nabbl