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Hot water pump from a steam boiler

My neighbor has a one pipe steam heating system in his house.He built an extension in his basement and since the boiler is there he can't install a steam radiator.What they did, they installed a pump by the boiler and this pump circulates hot water to a hot water radiator in the new part of the basement.It looks like it is hooked up by the return pipe,and it has its own thermostat which is actually a temparature controlled switch.I have never seen
anything like this,is this legal or mechanically correct? Thanks.

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