Hi Nickolas,
I really think he wasn't looking for anything to catch you on, he was just looking for a way to talk to you. If the 2 of you talked about the building, perhaps you could talk about the permit. Maybe he had a story about trying to get a permit himself. He's looking for common ground is all, and he was clumsy about it. If he can find something in common then the relationship can flourish and offer him ways to witness subtley. Your wife may or may not have known about it. If she was uncomfortable maybe she regretted giving the go ahead---or maybe she was just uncomfortable.
He is using informal witness techniques. It's a different more casual way to approach a person. Try to get a conversation started and steer it toward theocratic things. In the new system we will all be building our own houses. Since you like to build things, do you think you would enjoy designing and building your own house? Think about the magnificient house you could build when you have forever and perfect health and a perfect brain. No permits needed in the new system. ETC.
How long has your wife been a witness?
NC