"Whose house stands there?"
Translation:Чей это дом там стоит?
It's a particle here, it just emphasizes/intensifies the question. Another example of such particle: "же": "Чей же это дом там стоит?", or even more wondering with postfix -то: "Чей же это дом там стоит-то?" (more of a spoken language). All these things are optional and just make the speech richer and more emotional.
There is enough context here to go without "это". The short question is "Чей это дом?" (Whose house is this/that?), where "это" corresponds to this/that. However, when you add details "там стоит", "это" looses its function and can be omitted.
It would be of crucial importance to write Russian words with accents in order to know the correct pronunciation, e.g. стоит. It can be "stóit" or "staít" (big difference). Many will learn this wrongly, if the difference is not indicated. PS: Here it is "staít".
For the purpose of this exercise no since здесь means "here" while the original sentence asks you to translate "there". However, if you wanted to say "whose house stands here" you could simply replace там with здесь.