That's just not standard operating procedure.

@Angela SmithI’m sure it varies by location and landlord procedures.

What is the procedure to have the current owner replaced with me if no consideration or $1.00 consideration ?

Personally I would simply message the wholesaler on what their procedure is.

The land-use attorney then offered to research the variance procedure rules to see if a variance could be obtained to allow rebuilding of the four units in case of over-50% damage and to have the county provide a letter for lenders to that effect.  

Procedures will change a bit if you plan on renting these homes out 100% of the time, versus selling them for cash or payments. 

It's hard to find a single book that covers everything from residential/commercial/industrial to greenfield construction, financing vehicles and closing procedures...therefore, what set of books and literature do you all recommend?! 

You can avoid the issue here the most by setting better procedural rules for tenant screening/on-boarding (that's a post for another day) and procedural rules for tenant removal.My rules, which vary significantly depending on what state the property is in, give the 5 day grace period before late fees on rent. 

Is this the agent trying to figure out if I'm legit or is the standard procedure just to make an offer on a property. 

Some may charge a flat fee as many real estate attorneys do this with standard procedures.