zero turn oil too full and smells like gas. Also blows oil out dipstick.?

I just bought a zero turn mower with a 19hp kawasaki engine from local dealer. The tractor has 700 hours on it. I was going to start out by changing the oil. Well, the oil is overfilled and smells a little bit like gas. Also, if I take the oil cap/dipstick off, there is some blow by along with a mist of oil. I've had people tell me the motor is shot and others say it's normal to have the blow by on these motors. If not normal then what could be the cause?

The mower starts and runs pretty dang good, doesnt smoke out of tail pipe as far as i can tell, and I paid $3500 for it. A 2010 Gravely Pro 48Z.

Thanks for your help.