The engine was just rebuilt I was told!!!

Well first of all if he told you these things and you find out he was lieing the there are grounds for a law suite. It is called MISS REPRESENTATION OF SALES DECEPTIVE TRADE PRACTICE. Do you have a witness to what he said? I sued a guy for lieing to me on a 14ft boat. He told me no holes in the body. Come to find out there was an 8inch hole filled with bondo dead center of the boat. If you care to teach him a lesson then sue his *** if not just build it the way you want it and have fun. Me.......I'd teach him a lesson.
Needs to in writing in the bill of sale. I consulted a lawyer after my purchase about misrepresentation. It is treated as a used car.