Having a demesne over the limit is not always bad, though. Controlling more holdings than your limit allows will give you negative tax modifiers for every holding above that limit. In this case, the demesne limit is exceeded by 5 holdings. Your demesne limit is displayed in the upper right corner, for example 12/7 - the first number is how many you control directly, the second number is what your limit is. The holdings that you own personally will always have your banner on the right and left side of the picture when you click on a county. Demesne is the total amount of holdings that you, as a ruler, have under your direct control.
