It happens in several stages:
1) The hero must be leveled up (if I'm not mistaken, to around level 10).
2) When entering a town, this hero can destroy the built structures (for a certain fee).
3) When all buildings are destroyed, ghosts will settle in the town, and the town will be unavailable for a couple of days... i.e., the town will be destroyed.
4) Then you need to fight the ghosts, and after defeating them, you can rebuild the town. Keep in mind that you can only build two types of towns:
- either the town's original type
- or the town that is the starting town for your hero.
i.e., if an Elven town was destroyed by the hero Solmyr, then you can build either an Elven town or a Magic Guild.
Sincerely.
Regarding the second point - no more than 4 buildings can be destroyed in one day, as far as I know.
3. When the town is destroyed, it will be unavailable for seven days, and then ghosts will settle there, and you can take the town back.
4. You can build two types of towns, but this applies to the builder, not the destroyer. If Solmyr destroys a Rampart, and Sylwia comes a week later, then you can build a Castle and a Rampart.
P.S. In my opinion, seven days is too long, so I practically didn't use this.