nope... the DOHC will definatly see pistons meeting valves if the belt slips.
Definatly replace the timing belt FIRST thing you do before starting. they are only good for about 20,000 miles. This is to be expected as the 124 was the first mass production car to have a rubber belt driving the cams.
You 74 should have the 1800. Aside from the euro 1600 with the dual carbs, the 1800 is the sweetest of the engines. Actually a 132 series (the 1600 was a 125 series engine) it is a short stroke free revving engine that will pull to redline and beyond.. shame the US versions were strangled to a paltry 80some HP.
Do not worry about the handbrake.. they are ALL mediocre. Unlike most rear disc cars, the handbrake works on the caliper instead of a seperate drum. It will hold the car on level and slightly unlevel ground, but it will not lock the car when on a roll.
Car should also have TWO dimmers for the interior. The round one next to the windsheild wiper two speed switch (yes, the wipers are activated by the lever on the column, but the high/low is a seperate switch) controls the gages.. while the square plastic one above it controls the centre console (lit by a single lamp and fibreoptics btw)
High beams are on a seperate stalk behind the turnsignals, pull it down ( or up, I forget) to activate them.
Yes, the driving position is the classic "italian ape" style with the wheel too far away (and at a bus like angle) with the pedals slightly too close.
Also check the rear trailing links (there are 4 plus a panhard rod) for kinks. Too many got jacked up on them and bent the thin wall steel. If bent they will eventually tear and break. Cheap and easy to replace though.
Look for excessive camber on the front wheels. Back in the 90s a BIG batch of bad ball joints came into the states. I happened to get three sets and all lasted no longer than 5000 miles before breaking. Excessive negative camber is your sign things are bad.
Also check the oilpan for dents. It sits lower and forward of the crossmember.. you run over anything on the road, it will take the blow and probably break off the oilpump pickup. The engine will continue to run as long as you keep the oil level a quart high.. but best to drop the pan and replace it. You can get guards to protect the pan.
124 engines run LOW oilpressure at idle new. As long as the light is not on and the needle is above zero, you are fine. in 1979 Fiat eleminated the oil pressure gage as too many cars were coming back for "warrenty work" for low oil pressure that was naturally low. Americans were used to high pressures in their domestic steel.
Honestly that is all I can think of right now. A fiat 124 is a beautiful little pininfarina design (Chris Tajarro actually) with an engine designed by the same man who designed the Ferrari v12s (I forget his name right now) And it has a storied rally pedigree.. great little cars. I have owned one or two ever since I was 18 (38 now) and I used to DD one all through college. Mind the rust, keep up on the maintance, and they will bring miles and miles of smiles