Step away and check a few others out. Trust your gut feeling. If you do not see a silver gasket it hasn't been updated. Its possible he put a black one back in, but there is no black rubber material around the perimeter.
burning oil could just be from that atrocious engine bay. Valve covers could be leaking which he would have changed IF he did the LIM.
I would step away. Its not like its priced extremely well that you would be getting a deal. Especially with this list of problems you have already uncovered 10 mins after driving.
Keep looking.
