Should I get a permit for a basement bathroom?

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Scuba_Dave

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That's the biggest problem, an irate neighbor turning you in
So you checked with the Building Dept & they said your contractor was correct - no permit needed?
Appears that you never checked...remodeling requires you to meet current codes usually
The permit process is there to make sure everything is up to code & installed according to code
Only a plumber (as I understand) can do plumbing in MA, so that will be a problem

It's actually not a grey area, your local building Dept will tell you when you need a permit
You needed plumbing, electric & gas permits at bare Min
I don't see your renovation as a grey area in the least
 
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