• Talk to the gnome in the bar several times till he gives you a quest.
• Go to the abandonned house in Onnet Town and use the rat morph to get inside.
• Destroy all the bushes, grass and rats until you get the deed.
• Take the deed to the bank, equip and use it inside.
• Take the deed to the gnome, equip and use it.
• Go back to the house at Onnet Town.
• Wait till he's finished.

I'm still waiting for him to finish so not sure what to do after but apparently you get a lantern which you can use to burn the webs in Destiny.