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1. Becoming Hlaalu Hort is a matter of "persuading" the councilors to give you the title, in traditional Hlaalu fashion (i.e. money, disposition or intimidation). Most of the councilors carry a copy of the "Yellow Book of 3E 426," and you can supposedly also get one from Nileno Doravyn at the Hlaalu Council Manor in Balmora. I had joined House Redoran in my first attempt and she wouldn't give me one. However, others did. In any case, make sure to have around 3,000 to 5,000 extra gold saved up for persuasion purposes.
2. The first place you'll want to go is the Vivec Hlaalu Canton, on the top floor plaza, to see Crassius Curio in Curio Manor. He'll proclaim you Hlaalu Hort if you dump 1,000 drakes into his pocket, or less if you're a member of the House already.
3. Next, traipse over to the St. Olms top-level plaza to take care of two more councilors, Dram Bero and Yngling Half-Troll. Yngling is found in the manor named after him, and will kindly take 2 large off you to consider you worthy of Hortator if you're not in the House already. If you are, it's less. You can kill him if you want with no ill side effects save the possibility of your conscience. Now parade over to Haunted Manor, again in the plaza area, to speak with Bero (you can do these in any order). He'll unconditionally name you Hort, leaving three left.
4. The three remaining councilors are somewhat shaped like a pyramid - one on the top, in Orvas Dren, and two lackeys under him, Nevana Ules and Velanda Omani. Visiting either of the two subserviants before Dren is an exercise in futility, as they'll let you know (if they like you) that Dren's approval need come before theirs. Take a hike over to the Dren Plantation, a somewhat short hike a little southwest of Suran, and also conveniently past Ules' house, which you can visit on your way back. You'll find Orvas Dren atop the stairway at the highest level of his house on the east side of the plantation, decked out in nice armor.
5. There are three ways you can deal with Dren. The easiest, provided you are of sufficient strength, and without penalty, is to kill him. To provoke him first, just tell him about the Nerevarine. Or, you can go the blackmail route and secure the papers in his basement to do so. Galas Farethi downstairs has the key. Finally, it's tough, but if you can get his disposition up to 70 or greater, you can then ask to be named Hortator and Dren will agree.
6. Once you've taken care of Dren, go speak with Nevana Ules on your way back to Suran. She's right across the river from the city to its west. Seems she's already heard of how you dealt with Dren and is convinced to name you Hortator without further ado.
7. Now head back to Vivec. You can take the Silt Strider from Suran and then travel around the perimeter of Vivec to the east side, around the Telvanni Canton, then south across the bridge straight to Velanda Omani's Manor. When you speak with Omani, you'll be named Hort in a hurry.
8. Head back to the Hlaalu Canton in Vivec to Crassius Curio to be given the Belt of the Hortator. Your work here is finished, now on with the Telvanni campaign.