I have worked on alot of different hydraulic systems in the past, I can only assume that this has no smoke and mirrors to its operation and essentially just a closed loop hydraulic system.
The thing with hydraulics is the only really 2 ways to check the condition of the system. One is to sample the hydraulic fluid before its changed, which is usually done roughly with the mag plug. (which is found in the filter in some kubotas). If its got a little paste on it which is metallic should be normal wear on a system. If its a thin film and you can wipe it off relatively easily with your finger to leave a clean magnet I would say its ok. If you find splinters you have something on the way out, or chips you might want to steer well and truly clear of that machine. If you find any brass or lead on the magnet, steer clear too. That stuff is not magnetic and there must be alot floating around in the system to get stuck to something ferrous then to be drawn to the magnet. The other way to sample is to take a live sample of the system and get it analysed. It will tell you about the lead, chrome and brass that may be floating around the system. I know here we can take a pre purchased sample kit from a Caterpillar dealer for around 50 bucks and get a result in around 5 days. Also the check for water, coolant and other types of oils or abnormalities.
The other way is to do a pressure check on the system. Now ideally you just stick a gauge on a port and load up the hydraulics till they run over the system relief. Knowing the specifics of the machine helps here, as you may find that you only can get system pressure at full noise and not idle. Depending on the setup of the hydraulic system this could be a bad sign. Some hydraulic systems will be set up with a special pump that compensates for the rev of the pump to still get to system pressure, while others are only at specific rpms.
If the price is too good to walk past, It could be as simple as take someone with you (before the machine is touched again with a top up of hydraulics) and see if you can hear the pump cavitating. Its a hum, not a growl. Its like a high frequency vibration. This is bad for a pump. If it is not cavatating then check the fluid for that burnt smell. This would indicate that the level has been low enough that the hydraulics have been too hot and the previous owner has been lazy and not cheeked the level in some time.
More then likely this would mean that the seals have just a had there life span shortened and the system is still in good condition.
I would make sure that the hydraulics are only topped up at this stage, run the machine, to operating temp, take an oil sample and send it off. Do a system pressure check and check against the spec of the machine. some machines let you pull off the hydraulic filter without dumping the fluids. if you can spin it off and have a look at the magnet that would give you some idea.
With any machine its a gamble I suppose, I mean knowing this you could easily fool the results knowing how it all works.
Hopefully some other owners can pass on there wisdom in regard to the specific machine and kubota hydraulic systems!
good luck.