I too have had this sort of chain happen fairly regularly both as dm & player. Using it means that the guy the PCs are trying to squeeze for more can throw up their hands and admit they literally don't have the clout to give the players what they are trying to diplomancy/intimidate for while still having someone who can be used in meetings as the players advance to bigger & badder threats without needing to throw out all of the "local*" worldbuilding & contacts. Personally I'm a bit surprised at the people saying they don't do this sort of thing since it works well both for allies & villians.The town land is granted by a noble.
You do the quest for the mayor and he sets you up with a meeting with the lord.
You complete some quests for the lord and they set you up with meetings with the next guy up. And so on, until you get a royal audience.
* Local is relative & could be anything from one district in a huge city like sharn growing into more of sharn to an entire region growing into more of the region & even other neighboring regions.