Need info on AC unit

I have never come across AC lines coming out of the ground …
is that a correct installation or a defect ?
And the water ?

There is a way to run refrigerant line sets underground properly, and this is not it. That’s a defect in my book, due to the shortened life of the line sets due to ground contact.

Here’s the way it’s supposed to be done:

Also, the puddle of water is from condensation on the uninsulated part of the suction line, which you can clearly see in your first photo.

Thank Darren !

What about the oily looking residue in the puddle. ?

I added Licensed HVAC Contractor evaluate the unit … all defects

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Where was the air handler? Was there a crawlspace/basement?

The air handler was in the Garage