Don’t be Afraid to Video or Audio Record Your Deal Signing

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Most smart real estate investors have several clauses in their contracts to protect themselves. One of the many clauses I have is that the person states they are not under the influence of any drugs or alcohol and that nobody is pressuring them to sign.

However, you and I both know that often contracts are pointless documents and people try and weasel out of them. Heck, just look at all the Americans who walked away from their houses because they were underwater. They signed contracts, but chose not to honor them.

Well, the last thing that you and I want to happen is to help out a homeowner and then have them come back and say you ripped them off or took advantage of them. That’s why, in addition to all the clauses in your contracts you may want to record the person.

You can do this with an inexpensive Flip video camera or just a simple audio recorder.

When should you record a person? Of course, you can do it any time if you wish. That said, I only do it in instances where it’s a truly complicated deal and I have a slight bit of uneasiness about the seller.

When this happens I simply tell the seller that as part of company policy I will be recording (I usually use an audio recorder) the signing of the documents. I tell them that I will be more than happy to give them a copy of the recording if they wish.

I have never had anyone not want me to record, and it’s never cost me a deal.

The fact is, if a person objected like crazy to me recording them that would obviously raise a red flag and I probably wouldn’t want to do a deal with this person in the first place.

Keep in mind that some states are two-party states and others are one-party. What that means is in some states (one-party) you can record without the other person’s consent. But in two-party states both parties must know about the recording.

I believe you should have nothing to hide and to let the seller know you will be recording, because as I’ve already explained, it can be a good test to see if they’re going to try and be dishonest down the line.

One last thing. If you choose to record, don’t be meek, or uncomfortable when you tell the seller you’re going to do it. Also, don’t “ask” them if it’s okay. You tell them this is what you’re going to do and that it’s company policy, and if they don’t like it you won’t move forward. Any honest person should not be bothered by this, especially since you’re going to give them a copy of the recording if they want it.

Photo: Artotem

About Author

Jason R. Hanson is the founder of National Real Estate Investor Month and the author of “How to Build a Real Estate Empire”. Jason specializes in purchasing properties “subject-to” and has purchased millions of dollars worth of property using none of his own cash or credit.


  1. So in essence, this is another way to separate the bad seeds from the good ones. That makes sense; no buyer would object to a recording if they have nothing to hide. Buyers will see that the recording is for their own sake as well; in the same way that a they are given a copy of the contract, a copy of the tape will protect them from shady deals (not that your company is one, Jason!). Maybe all REAs should be doing this.

  2. Having your real estate transactions recorded is helpful in ensuring that all the parties involved in the contract willfully signed the said contract, and that, they are not under influence of any drug, alcohol or threat of other people.

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