"Everything is PERFECT" says LC in regards to AUDRINA PATRIDGE drama!

Conrad insists there's no domestic drama.

"It's actually really funny," she told People. "We were having an at-home shoot ... so I think the neighbor saw clothes being moved in and out. And we just had a couch delivered that day and so they saw the moving van."

The MTV star, who's in New York showing the latest designs from her clothing line, claims there are no tensions back home. In fact, she says, "everything is perfect."