Lets see, this PEX joint is leaking so maybe I can find something here in the garage to fix it with… A little glue and a little PVC should do the trick :shock:
Thats PEX going into the wall also.
Did it function properly at the time of the inspection??
Note the complete lack of 37 shutoff valves, Recommend hanging cloths or heavy tools on pipe immediately.
Not in the entirety since proper installation is part of a correctly functioning system 
That is known as a Polish Reverse Peltier Loop. As the water is delivered from the city supply or the well to the home, the water then travels through the “Peltier loop” where it picks up external heat and helps precondition the water before it enters the water heater. This way the water heater does not need to use as much energy, since it does not need to raise the water temperature as many degrees. Modern technology at its best. 
Or it could have been a Harry Homeowner fix to a leak.
I thought that was an Australian Drain Relief Circuit. It pre-spins the water so it can go down the drain easier.