The Oklahoma Offer is a type of real estate fraud that is used by unscrupulous or unknowing individuals that is, in a word, illegal. Good real estate lawyers will have nothing to do with them.
An Oklahoma scheme is a plan by both the buyer and the seller to convince a bank to lend money on a real estate transaction where a buyer would not qualify for that money in the normal course. As an example, a seller and a buyer could agree that they will insert a price into their agreement of purchase and sale that is higher than the actual purchase price. In that way, a mortgage company will lend more money at favourable rates or, in the instance of excess insurance, will not need to pay high ratio excess insurance fees.
Estate lawyers will advise you that engaging in an Oklahoma scheme is a criminal offence. Section 362 of the Criminal Code makes it an offence punishable by up to ten year in prison to obtain credit by way of false pretense or fraud. To be clear, a mortgage is deemed to be a type of credit and thus, if you or your real estate professional assists you in engaging in an Oklahoma scheme, you and those professionals both could be subject to prosecution.
Good real estate lawyers have other strategies up their sleeves, which are completely legal. They know mortgage professionals and bankers who can assist you in ways that will allow you to successfully fund and conclude your deal and do so legally and ethically.