FINCEN & What You Should Know Before The New Requirements Rolling Out 3/1/2026

What Buyers and Sellers Need to Know About FinCEN’s New Real Estate Reporting Rules

Beginning December 1, 2025, a new federal rule issued by the Financial Crimes Enforcement Network (FinCEN) will require reporting of certain residential real estate transactions to help combat money laundering and increase transparency in real estate ownership.

While the rule does not affect most traditional home purchases, it is important for Buyers and Sellers to understand when reporting may apply and what information may be required.

What Is FinCEN and Why This Rule Exists

FinCEN is a bureau of the U.S. Treasury responsible for enforcing anti-money laundering (AML) laws. Historically, illicit actors have used all-cash purchases and legal entities or trusts to conceal ownership of residential property. This rule aims to limit anonymous ownership by requiring transparency in higher-risk transactions.

When Does Reporting Apply?

A Real Estate Report is required only if all of the following are true :

1. The property is residential real estate located in the United States

2. The transfer is non-financed (including most cash purchases or private/non-bank loans)

3. The buyer is a legal entity or trust (such as an LLC, corporation, partnership, or trust)

4. No exemption applies

Transfers to individuals are not covered by this rule.

Importantly, there is no price threshold. Even low-value or gift transfers may be reportable if the criteria are met.

What Types of Properties Are Covered?

The rule applies to common residential property types, including:

• Single-family homes

• Condominiums and townhomes

• Cooperatives

• Properties designed for 1–4 families

• Certain vacant land intended for residential construction

• Mixed-use properties with residential components

Common Exemptions

Many everyday life transactions are specifically excluded, including :

• Transfers due to death or inheritance

• Divorce or dissolution of marriage

• Court-supervised transfers

• Transfers to bankruptcy estates

• 1031 exchanges

• Transfers from individuals to their own revocable trusts (in certain cases)

Who Files the Report?

Buyers and Sellers do not file the report.
The responsibility rests with a single “reporting person,” typically a settlement agent, title company, escrow agent, or attorney involved in the transaction .

FinCEN uses a “reporting cascade” to determine which professional files, or the professionals involved may designate one party by written agreement.

What Information Is Reported?

When reporting is required, the reporting person must collect and submit information including :

• The legal entity or trust purchasing the property

• Beneficial owners (individuals owning 25% or more or exercising substantial control)

• Certain individuals signing on behalf of the entity or trust

• The seller

• Property details

• Purchase price and payment details

This information is stored securely by FinCEN and is not available to the public.

What This Means for Buyers and Sellers

For most traditional residential transactions, especially those involving individual buyers with conventional financing, nothing changes.

For entity or trust purchases, Buyers should be prepared to provide ownership information if required, and Sellers should understand that additional transparency requirements may apply. The rule is designed to increase confidence and integrity in real estate transactions—not to slow or complicate legitimate deals.

Final Takeaway

The FinCEN Residential Real Estate Rule is about transparency, not disruption. Its impact is narrow, targeted, and focused on higher-risk transactions. Working with experienced real estate professionals and title partners will ensure compliance while keeping transactions smooth and efficient.

If you have questions about how this rule may apply to your specific transaction, consult your real estate professional, title company, or legal advisor well in advance of closing.  Big Shout Out to Ticor Title for Teaching a Class and Sharing Information with our Board of Realtors.