Remember the FinCEN Corporate Transparency Act? Well now it’s the Residential Real Estate Reporting Rule!

Effective March 1, 2026, the Financial Crimes Enforcement Network (FinCEN) requires federal reporting of certain residential real estate transactions under the new Residential Real Estate Reporting Rule (31 CFR § 1031.320). This rule expands anti-money laundering oversight to non-financed transfers that were previously outside regulatory reach.

No, they are not joking.

Transactions Subject to Reporting: Must Meet All Three Below

A transaction triggers reporting when all three of the following apply:

1.      Residential real estate — Includes 1-4 family homes, condominiums, co-ops, townhouses, and vacant land intended for residential construction; AND

2.      Non-financed transfer — The purchase involves no mortgage from a traditional financial institution subject to anti-money laundering (AML) requirements. This includes all-cash deals and transactions funded through private or hard-money lenders (For example: Any Owner-carry type transactions which used to be private are now required to be reported to FinCEN); AND

3.      Buyer is a legal entity or trust — LLCs, corporations, partnerships, and most trusts (statutory and non-statutory) are covered. Transfers solely to individuals are not reportable.

So, What Must Be Reported?

When a transaction is reportable, the reporting person must file a Real Estate Report with FinCEN. The report requires disclosure of key information about the transaction and the beneficial owners of the purchasing entity or trust, including:

- The identity and contact information of the transferee entity or trust;

- Beneficial ownership information for individuals who directly or indirectly own or control the transferee;

No more privacy fencing around your private transactions.

- The address and legal description of the property transferred;

- The purchase price and date of closing;

- The method of payment, including cash, wire transfers, cashier’s checks, cryptocurrency, or funds provided by private lenders; and

- Information identifying the reporting person and other professionals involved in the closing.

(The reporting person must also maintain supporting records for the transaction and provide additional documentation to FinCEN upon request.)

Are There Any Exemptions?

The rule provides limited exemptions, including but not limited to the following:

- Transfers resulting from death, divorce, or court order;

- Bankruptcy or court-supervised transfers;

- Gifts to the transferor’s own revocable trust (for no consideration);

- Transfers of easements; and

- Traditional mortgage-financed purchases.

(Exemptions are narrowly construed and should be evaluated on a transaction-by-transaction basis.)

Essentially, they will be able to see inside your private transactions...

What is the Filing Deadline and Responsibility?

The Real Estate Report must be filed by the last day of the month following the closing date.

Filing responsibility generally falls on settlement agents, title companies, or escrow providers, though legal professionals may be designated depending on transaction structure. (e.g. Lawyers who are facilitating a real estate transfer without using a title company or escrow agent must take notice of this requirement.)

In Conclusion: The purpose of these regulations is to limit money laundering by eliminating “under the radar” property transfers. The reality is that this will also create additional reporting requirements for legitimate property transfers to irrevocable trusts or business structures for asset protection purposes and legal tax avoidance. Be very, very careful to comply or use a title company or other professional who is conversant with the regulations.

Curry Andrews, Attorney