I would be agreeably surprised if the OP is knowledgeable about the BSS requirements, and looking at the state of the engine it appears to me that if that is indicative of the rest of the vessel, the boat needs a detailed viewing by someone who knows what they are doing. I do hope the OP can find a suitable person to give the boat a detailed look to see what, if anything needs to be dome and he is going to be prepared for spending money to get things sorted, if that is indeed possible. I suspect that this is a great example of buying a cheap boat to save money and having to spend a great deal to put things right. Forums like this, in my view, are not where he should be concentrating his efforts, but I would be interested to hear how things are resolved.
Howard