Could be a head gasket or a warped or cracked Cylinder head.
Does that mean that you replaced the thermostat AND the sensor? If not, you really need to replace the thermostat. A sticking thermostat can cause temperature swings and potentially overheat the engine. BTW, BMW engines tend to have serious problems when they overheat. Don't let it overheat or you might be buying a new engine.
The thermostat is most likely stuck in the closed position and needs to be replaced. The closed thermostat does not allow the coolant to circulate through the radiator, thus overheating the engine. The reason for water being pushed through the thermostat housing is because the water pump is spinning and there is no place for the coolant to go, therefore, it is leaking out through the housing gasket which is probably already blown (need to replace it when you replace the thermostat.
Since you have replaced these two parts, have you checked the water pump ? With age, the impeller on the pump or bushings become used enough to reduce the flow of coolant quite a bit. This will cause over heating due to lack of circulation. Also did you flush the system to make sure that there are no blockages ? And, check the upper and lower hose to make sure they do not collapse.
Ingeneral, the fan will run only if the temperature of the radiator is above the normal range. If the fan is running, then the radiator must be over temp unless the radiator fan thermostat or it's relay is defective. If the radiator truly is over temp then you have a larger over-heating problem You state the thermostat was replaced. if you replaced the fan thermostat then either the radiator really is over temp and it is doing what it should, or there is a problem with the thermostat-fan relay or switch. If you replaced the engine thermostat that controls the flow of coolent between the engine and the radiator, then that probably wasn't your problem and you should look elsewhere for an overheating cause. I would start by determining if the engine actually is overheating or not. If it is, I would look for coolent system problems like the engine thermostat (if you didn't replace it already), water pump, leaks, scale build up in the radiator, or blockages in the system. If the engine isn't overheating then I would consentrate on the fan, fan thermostat and relays.
if your thermostat was bad your engine will over heat but it has nothing to do with the fan,fans are driven by a diffrent mechanism. try checking your thermostatic switch/ heat sensitive switch or sensor, located somewhere in the cooling system(radiator,engine block or thermostat housing) which is the one that tells the fan when to come on.(only electric fans)it may be faulty wiring
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