NOT acceptable!! This is not to code, at least in Calif. It needs to be hooked up to a drain.

While I can't figure out where your condensate drain line is in the picture you posted, we do have ours hooked along our ceiling an draining into our laundry sink. But, we don't have a finished basement. If I were finishing it, you can be sure I would ask for a more elegant solution.

As recommended by our Carrier HVAC technician, we flush our condensate line twice a year with a bleach/water solution to clear the line of build-up mold/mildew. You simply could not flush your line with this set up. it's absolutely ridiculous. That line should be routed to the exterior and drain in your lawn or backyard. It's criminal that he is trying to pass this off as normal.

Everyone would want that concealed, but they can plug up and the water will go elsewhere. So there is an advantage to being able to see the drip when the AC is running.

The laundry room is in our basement and it's a finished basement. I understand it needs to be drained somewhere but I was just hoping it wouldn't be so exposed since I'm planning to finish this laundry room.