There seems to be yellow liquid leaking from what seems to be near the prop on the motor.l have a feeling it is the gear oil and l have a leaky gasket but l just wanna be sure.Also there does not seem to be any water coming out from the impellar.Does it come out near the prop because the prop is a pin drive not a through prop exhauhst.l just bought the motor and l only ran it at idle.l wanna get all the problems out of the way so l dont blow it up on the water.

the golden fluid is gearcase oil. you should change the oil & replace the gaskets, & drain it again after the next outing to see if that resolves the problem. if it doesn't, you will need to re-seal the gearcase.

the exhaust outlet for that motor is under powerhead

Oops u may have just bought a problem motor. Hope it was cheap.

Yellow fluid is grease for sure. And it is the ''lower unit'' very expensive & difficult to work on. More so than even the engine/motor itself. No water circulating probably means the impeller has all the fins worn or broken off. Age, running in gravel or sandy water kills these easy. It is 35 years old & the impellers r usually rubber.

The repair may cost more than u paid for it. Look around for a similar outboard with a shot motor & good lower unit. Lot is easier to swap the lower unit than repair one.

Lower units look as complicated inside as an automotive auto trans with small gears & washers. Special tools needed usually to break them down. ( l know l took one apart once & threw my hands in the air)

Oh & remove the unit from the old one first to learn how to do it before tearing into yours.

Goodluck
RoyG
KC

Many of the older motors would ''weep'' oil from the lower. To see if it has a real problem- loose the large slotted drain screw. See what comes out. If u gets lots of water l would get it to the repair shop. If u can put a chain on a bicycle- u can reseal this lower unit yourself. Get a nice repair book & follow the directions. This engine may have a thermostat which dumps at the holes below the power head. Most would come out the exhaust relief below the cavitation plate. The real answer is to put u hand on the exhaust cover just after u start up the motor. If it get so hot u can not hold it there, then the impeller is shot. Your new book will give u a list of services & when they should be done. Do them all.