1985 500sel oil leak

It leaks 1 drop from between engine and torque converter every 30 seconds while engine is cold , and leaks less (about one drop every 1 to 2 minutes) after engine reach operating temperature. I was told by mechanic the left
block head gasket needs to be replaced and I was quoted $1700.
I am wondering:
(1) I Google searched this topic and found suggestions about re-torque the head bolts. Is this a reasonable first approach? Can anybody recommend a shop/mechanic who is experienced in doing this in California?
(2) The mechanic went through my car claimed (1) will not work. What is your opinion? Please?
(3) There is almost no leak while engine is not running. What would be other possible source for leak?
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Taking up the mechanic's diagnosis, the head bolts CAN be retorqued but an oil leak of this size is suspect of a blown head gasket or cracked head rather than the cylinder head not being fully torqued. But is the leak really from the head? I'd get a second opinion.
The leak could be from the rear crankshaft seal; the drip is from that area.
As with any oil leak, one needs to clean the engine so the source of the leak can be found, anything less is guessing.
Alternatively, one can buy a lot of oil for $1,700.
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The engine idle perfect and runs very strong and smooth. Will a blown gasket or cracked head run this good? I mean, it is as smooth as some Lexus sitting next to it.
I also suspect the main rear seal because It seems (again, no expert, no experience) the oil oozing out from the junction. Will a transmission place be the preferred place to have it checked out? Can I expect a transmission shop handling the whole thing if it is the rear seal? Thank you very much for the inputs.

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The engine idle perfect and runs very strong and smooth. Will a blown gasket or cracked head run this good? I mean, it is as smooth as some Lexus sitting next to it.
I also suspect the main rear seal because It seems (again, no expert, no experience) the oil oozing out from the junction. Will a transmission place be the preferred place to have it checked out? Can I expect a transmission shop handling the whole thing if it is the rear seal? Thank you very much for the inputs.

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Apparently you too believe the leak's source is the crankshaft's rear seal, not the cylinder head. In view of the engine's smooth idle, and you should confirm this, no oil in the coolant and no coolant in the engine's oil and no overheating the rear seal does appear to be the most likely culprit. Based on the leak you must have to refill the lube oil, right? Again I suggest a second opinion but NOT by a transmission shop; take the car to an independent M-B shop and simply ask them to identify the leak and quote the repair cost.
Transmission shops have one expertise - transmissions. IMHO they have neither the knowledge to repair the rear seal nor the inclination to do anything other than remove and replace transmissions, regardless of what's really needed.
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