Same problem, I understand it's related to you killing his servant guy, Halvard something earlier in the Dark Brotherhood questlines meaning Jarl Siddgeir in Falkreath doesn't like you meaning he never unlocks the land-purchase option.
I am a Thane everywhere including Falkreath and have the named weapons to prove it and can pick up one of the random radient quests from the steward but even after completing this, no further quests appear from either Jarl or steward and no purchase option appears. Both Dawnstar and Morthal purchases work fine but the constant snow annoys me and I'd prefer a more temperate climate to build in, like anyone.
If anyone manages any workarounds on the 360 I'd REALLY appreciate some advice.
Last edited by buggss; 09-05-2012 at 09:25 AM.