Legal questioning - Owner financing

[François Gauthier-Drouin]

Hi BP!

I'm having a legal questioning regarding a financing method brought to me by a local wholesaler in Quebec City, Canada. I visited a triplex this guy had under contract and wanted to sell for 190k.

When I told him I might have the down payment (19k) in a few weeks only, he suggested that we put the triplex under contract at 205k (so I would have to find 20.5k for down payment), but he would immediately transfer me 15k back (putting it in writing on a different contract). That way, my down payment would only be 5.5k for a 190k building, and my mortgage would be based on a 205k price purchase.

Is this even legal? I ended up turning him down.

Thanks BP!