So B has to close the transaction. 

It obviously depends on the specific situation, but generally owners who would be willing to self-fund the transaction don't carry any mortgage.

The best thing for you to do is go into the Planning Department and talk to the planner at the desk, and find out what you would be allowed to do.

Because we've always borrowed from where we bank, they brought up the 'unique' transaction history on our accounts. 

Here in Wisconsin it it standard to do a "well water and septic" test during any real estate transaction.

Account Closed do you do transactional funding?

Both transactions weren’t successful, but they were great learning experiences.Fast forward to present day, I am ready to make a career change (from IT consulting) and jump back into the RE investing world!

He has made loads of money off of my transactions and referrals I have sent to him.  

All of the extra paperwork, expenses, and added liability seemed not to be worth the small transaction fee I pay to a 100% broker. 

I work in the Planning & Inspections department for a municipality, and the answer to the first 2 questions all depend on the City you're developing in.