New federal FinCEN reporting rule.

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Local lawyers are tasked with implementing, starting March 31 2025, new federal reporting requirement and would like all real estate agents to be aware, in order to educate your clients if asked. The Financial Crime Enforcement Network‘s (FinCEN) Beneficial Ownership Information reporting rule we shared last year are soon to be triggered by real estate sale transactions as well.

The real estate report is a new federal anti money laundering report filed with the U.S. Treasury (FinCEN) for certain residential real estate transfers starting in 2026. It is NOT a public record. Clients can be done in as little as 5 minutes with this new closing task. The goal is to increase transparency and help law enforcement identify suspicious activity in the real estate market. When it is required (simple trigger test)

Who Needs to Understand the FinCEN Rule?

  • Title companies, closing attorneys, title agents and settlement agents (who will be primarily responsible for reporting)
  • Real estate professionals involved in closings should understand the rule to help clients
  • Buyers using legal entities or trusts for property purchases (who may have new reporting and compliance obligations)
  • Sellers involved in transactions where the buyer is subject to the rule

Expect a report when ALL are true:

  • Purchase of Residential property
  • Buyer is an entity (LLC, corporation, partnership) or a trust
  • No traditional bank mortgage (cash, private, hard money, seller financing often triggers)

The settlement or closing provider files (or a designated party). Real estate agents do not file but should have knowledge of this new requirement.

Process and timing

  • Closing agent typically emails a secure link to a short online form.
    Completing it promptly reduces closing friction.
  • Simple structures often take 5 minutes. Complex entities or trusts can take longer.
    Closing agent needs the information before closing per federal requirements.

What Information Will Be Collected?

  • Details about the purchasing entity or trust
  • Identification documents for beneficial owners
  • documentation from Individuals with 25% + ownership
  • Information about the property being transferred
  • Details regarding the funds used for acquisition of the property
  • Information about the reporting person

What Types of Properties Are Included?

  • One-to-four family residences
  • Vacant land upon which the transferee intends to build a one-to-four family structure
  • Units in buildings designed for one-to-four family occupancy (such as condos or apartments)
  • Shares in cooperative housing corporations (co-ops)

 What is a Non-Financed Transfer?

A non-financed transfer (all-cash) is any real estate transaction that doesn’t involve a loan or line of credit secured by the property, or where the financing comes from a source that isn’t regulated under federal anti-money laundering rules. This includes all-cash purchases, deals funded by the seller, private loans, or any transaction in which the lender isn’t subject to the Bank Secrecy Act (BSA) and related Anti-Money Laundering (AML) regulations. Simply put, if there’s no traditional mortgage or the lender isn’t regulated for AML, the transfer is considered non-financed.