Wheelman

I have the opportunity to purchase a 1985 Turbo Loyale 4x4 with a 3 speed automatic transmission. (It's a single range setup) The seller says the engine was swapped for an 87 JDM turbo motor and the tranny has been rebuilt (he has receipts for all the work). He told me the front diff is bad and this is preventing it from shifting into 3rd gear. Doesn't sound right to me and when I drove it I detected nothing that indicates the diff is bad. After reading a little on this site I think the governor valve is bad, does this sound correct? He also told me the front diff is separate from the tranny on the automatics, is this true? This doesn't sound right to me either. When moving the shift lever it sticks when going into or out of 2nd in either direction, could this just be a worn linkage? The engine leaks oil and it looks like the tranny leaks fluid as well, it was hard to tell due to the skid plate he added. The motor fired right up and ran strong once the turbo spooled, seemed a little rich though. Anyway the selling price is $500.00 and the seller is including the original turbo, a new ECU, a fuel pressure regulator, a left headlight, a Clymers manual (basically useless) and the original white spoke rims with new Toyo snows mounted. What do you guys think? Should I snag it or pass? Thanks Wheelman