Answer:
The correct option is THAT
Step-by-step explanation:
A relative pronoun is used to connect a clause to a noun or pronoun in order to describe it. Among the most common relative pronouns highlight who, whom, whose, which, and that.
They can be classified into two different categories; defining and non-defining relative clauses. Defining clauses gives essential information about the noun, while the non-defining clause could be deleted and the sentence would have the same information.
Bearing in mind the above, it could be said that the sentences would result as follow: The house THAT was around the corner from our house was for sale. This because the Defining clause "that" gives essential information about the house.