[usrusr]

As in the cold end of the heat pump is inside the heated area of the house? That feels very weird. On the other hand with heat pumps, stacking multiple stages strategy isn't necessarily a bad thing! All inefficiencies are not really losses but merely resistive heating contributions (unless their heat escapes to the final cold sink aka outside) and in the end the real question is which configuration is good in terms of capex and maintenance.

In an environment where getting rid of humidity is a concern (mold!), a "cold end inside" heat pump for water might even double as a dehumidifier, with water condensing on the cold end sent to the sewers, contributing a little energy in the process.

[sf_rob]

That's not uncommon and is even beneficial in warmer climates. It will be parasitic in winter (even if externally vented) and symbiotic in summer.