Where the propeller shaft passes through the hull there's a hole to the sea. A stuffing box or a dripless seal closes it round a turning shaft, held on by a short rubber hose, the shaft log hose, and its clamps. If the hose splits or the seal lets go, water comes in at the speed of the hole.
How a surveyor checks it
Start with the hose. Practical Sailor says to inspect it for age deterioration, a common problem, and for corroded clamps, and calls double clamping essential. Squeeze it: cracked, soft or swollen hose is replaced.
Then the seal, with the shaft turning and with it still. A traditional stuffing box should drip: Practical Sailor gives 3 to 4 a minute underway, and says about 10 a minute or drips with the shaft not turning means adjustment or maintenance. After the sea trial, feel the box. Good Old Boat's rule is warm, never hot.
A dripless seal holds a graphite collar against a stainless collar with rubber bellows. It should be dry. Practical Sailor notes these seals still have scheduled maintenance, so ask for the records and check the bellows for cracks.
What decides the grade
The rate of water coming in and the hose holding it back. A stream, or a failing hose, is an A. Too many drips, drips with the shaft still or single clamps are a B. A dry seal with no service record is a C.