When checking how much reputation you lose when you fail a town hall quests (for potentially creating a character that is hated in all the kingdoms) I noticed a strange bug. If I do nothing but sleep in the inn of the town I got the quest until the time runs out, I don't actually lose any reputation.
The following messages appear:
"Quest ... failed"
"Reputation changed: ..."
But then when I check the logs or my reputation meter nothing has gone. Even changing to other maps doesn't change anything at that point.
However if I do change to another map before losing the quest, I do still lose the reputation as normal.
Below is a screenshot from my experiment. I failed all missions but only in the few cases when I moved to the next city before losing my reputation got removed.