Beginning March 1, 2026, the Financial Crimes Enforcement Network (FinCEN) will implement a new nationwide reporting rule impacting certain residential real estate transactions. This update is part of an ongoing effort to improve transparency and reduce financial crime in real estate transactions. Learn more about the rule.
Why FinCEN Is Updating Real Estate Reporting
FinCEN’s updated rule focuses on real estate transactions that present a higher risk for money laundering—specifically, non‑financed purchases made through legal entities or trusts. By collecting targeted information on these transactions, FinCEN aims to discourage misuse of residential real estate while maintaining efficiency for everyday buyers and sellers.
Which Transactions Are Affected
The rule applies only when all of the following conditions are met:
• The transaction involves residential real estate
• The purchase is not financed by a traditional lender
• The buyer is a legal entity or trust
Most transactions involving individual buyers and traditional mortgage financing are not subject to this reporting requirement.
What Information Is Reported
When the rule applies, a Real Estate Report must be filed electronically with FinCEN. The report generally includes basic information about the property, the parties involved, beneficial owners of the purchasing entity or trust, and transaction details. Reports are typically due within thirty days of closing or by the end of the month following closing.
Who Handles the Reporting
FinCEN uses a reporting cascade to assign responsibility to a single party involved in the transaction—often the title company or settlement professional. This approach avoids duplicate reporting and helps keep closings moving efficiently when responsibilities are clearly defined early.
More detail on reporting can be found here: FinCEN FAQs.
Why This Matters for Agents and Investors
While most agents and investors will never file a report themselves, this rule can affect transaction timelines and expectations—particularly for all‑cash or entity‑based purchases. Awareness helps you proactively guide clients, identify when additional coordination is needed, and avoid last‑minute surprises at closing.
The Bottom Line
This FinCEN rule is a targeted update impacting higher-risk residential transactions (estimated at around 15 percent of transactions). Because of the additional time and resources required to comply with the rule, title companies will collect a reporting fee on applicable transactions. Understanding when the rule applies helps keep your transactions simple, predictable, and moving forward.
If you have questions about how this rule may affect a specific transaction or would like a deeper conversation, reach out to one of our team members. We’re here to help you navigate the details with confidence.
Learn more about the rule and implementation timeline here.
