Searches of municipal agencies that reveal violations are not covered by title insurance since they cannot result in the loss of ownership of the property. For a fee, title companies offer the service of searching the records of these agencies, but are prohibited from offering insurance against any monetary loss resulting from violations since this does not come within the scope of title insurance.
Licensed Real Estate Associate Broker
450 7th Avenue Suite 1501
New York, NY 10123
I have never heard of Permits shown on a Pre-Title; I can't imagine how they wouod have access to that information.
The one possible thing that my brain conjures is if there was a Mechanic's Lien filed for the work.
Good luck on that one,
And, NO! I am sure that the Title Company would not be liable nor cover that; it just isn't their baliwick.