Need Opinions and Advice Please!!!

[Joseph Clemens]

I am currently looking at a house in upstate New York.  It is located very closely to a Pond (+/_ 10-15' from edge of water to house); so it is very close.  The house appears to have been a small cottage, and then a modular building addition attached in what I believe was 1991.  I am unsure as to the foundation of the cottage, but the modular portion appears to have been a poured slab (approx. 5" deep) with concrete block skirting.  At the front of the house, the skirting is below grade; however, the grade slopes pretty quickly as it approaches the pond.  By the time it gets there, the foundation is completely exposed.  Therefore, there is no frost depth protection (heaving and thawing, etc.).

I am unfamiliar with the construction approach.  Not sure if this is acceptable, or was in 1991.  The Building Department in these areas I am sure is pretty lax.  I am just curious what your thoughts are.  Its been standing for the past 30 years and I did not notice any concerns with settlement, etc.  I did not see any cracks in the slab from the point loads, but I also did not study this.  

Should I proceed with a home inspection, or is this a situation you recommend to run?  The price is decent; however, there are not many comps for the area.  Myself and family truly loved the property and house; just want others opinions on if this may be a mistake to proceed, or does this appear common practice for the age and location (upstate New York).  I just want to make sure the house will remain standing for the long term.  

Picture attached for reference and can gladly provide more.  Thank you!!!!