I wasn't there to here the terms of the agreement between the previous owner, and his finisher, and neither were you. I know that people trying to sell their house tend to be a bit frugal, so maybe there was a mutual agreement to just resand, and hope for the best. Did your brother see these spots, AND butythe house, knowing they were there, without placing a provision in the contract? Seems a little late in the game to me.
How many times had the floor been refinished, prior to this last time? So many questions need answers before to go hanging the installer, who may have done exactly what he was paid to do.
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