1999 Bayou 220 oil leak from bevel gear housing.

[BillyRey]

I have oil leaking from the bevel gear housing and found what I believe to be the oil seal damaged and ordered new seal.  When looking at the diagram it show the oil seal on the outside of the housing between the housing and drrive shaft.  My question is shouldn't is be in the housing?

[Mech]

Could you look the part up and post a picture showing which seal it is you mean ?

Generally seals are fitted into housings, and they are generally the last thing after all the shims and bearings and gears or anything else that may be in there..