"Buyer beware" is always the case. The fact that the buyer took his word for it, without thoroughly checking it out for himself shows a certain level of inexperience and naivete.
  I don't know about you, but I wouldn't drop $31,500 without a paid pre-inspection by a reputable shop.  I've sold cars for under $10K that had that done first.
  If the seller purposely misrepresented the car, then I believe that he owed some money back to to the buyer, or risked a lawsuit for the difference plus costs.  I think that he should have either asked to reverse the transaction, or asked for the difference back, but probably wouldn't have gotten it. 
  The fact that it has been subsequently sold and repaired/ modified won't help his case in court.  I guess he decided to take the hit and recoup as much as possible.  What an expensive lesson to learn, but I bet he won't do that again. 
  I wonder what Zoltan Kuthy has to say for himself?

Mike B.