FinCEN’s New Real Estate Reporting Rule

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has taken a major step toward combating money laundering in the real estate sector. In late 2024 the agency finalized the Real Estate Reporting Rule, establishing reporting requirements for certain non-financed (think “all-cash”) transfers or sales of residential property. While the requirements were initially set to take effect in December of 2025, the compliance date has been postponed and the new Rule will be effective March 1, 2026. Along with the new Rule, FinCEN released the aptly named Real Estate Report Form, which is a form property transferors will be required to fill out if they intend to transfer real property into a trust, or to an “entity” such as a corporation, partnership, LLC, or estate by way of an all-cash or non-financed transaction, with some limited exceptions for each transfer.

This Rule imposes a duty to identify and report who is actually behind certain real estate transactions, and while it does not require real estate businesses to create or maintain full anti-money laundering (AML) compliance programs, it does place specific filing and recordkeeping obligations on settlement agents, title companies, attorneys, and others involved in the closing process. For anyone working in residential real estate, the coming months will be a time to study the rule carefully, understand when and how it applies, and begin putting systems in place to comply.

A New National Standard for Transparency

For years, FinCEN has issued temporary and targeted “Geographic Targeting Orders” (GTOs) requiring title insurance companies to identify the true owners behind all-cash purchases in selected markets, including New York, Miami, and Los Angeles. Those orders were designed to help law enforcement track illicit money entering the real estate system through shell companies and trusts. The new Real Estate Reporting Rule effectively replaces that patchwork of GTOs with a permanent, nationwide reporting requirement. The purpose is straightforward: to increase transparency, making it harder for criminals to hide behind anonymous ownership structures and launder money through real estate purchases.

The Real Estate Report Form will collect basic transaction data—identifying the property, the parties, the method of payment, and most importantly, the individuals who own or control the purchasing entity or trust. The information will be submitted to FinCEN through a secure portal and stored alongside other reports filed under the Bank Secrecy Act. These reports will not be public; they are accessible only to FinCEN, and subject to strict limits on their use by law enforcement agencies and other authorized users of the system.

Which Transactions Are Covered

The reporting obligation applies to what FinCEN calls “reportable transfers.” These are non-financed transfers of ownership in residential real property to a transferee entity or trust. “Non-financed” simply means there is no loan from a financial institution that already has AML and Suspicious Activity Report (SAR) obligations under federal law.

If the buyer pays cash or receives a loan from a private lender that isn’t subject to those AML rules, the transfer is considered non-financed and therefore potentially reportable.

“Residential real property,” meanwhile, includes single-family homes, townhouses, condominiums, and cooperative units—even those in mixed-use buildings—as well as land intended for future residential development. In short, the rule is broad enough to cover most typical home purchases when the buyer is a company or trust rather than an individual. Specifically, FinCEN lays out 4 ways a property can fall under the rules:

1. It is real property located in the United States that includes a structure designed principally for occupancy by one to four families;
2. It is land in the United States on which the transferee intends to build a structure designed principally for occupancy by one to four families;
3. It is a unit designed principally for occupancy by one to four families within a structure on land located in the United States; and/or
4. It is a share in a cooperative housing corporation for which the underlying property is located on land within the United States.

Certain types of transfers are explicitly excluded. Transactions triggered by death, divorce, bankruptcy, or court order are not reportable. Nor are most transfers of an easement, transfers where no “reporting person” exists, or gifts made by an individual to a revocable trust for which that same individual (or their spouse) is the grantor. But the key takeaway is that most all-cash sales to LLCs, partnerships, or family trusts will fall squarely within the rule.

Who Must File the Report

Only one person or business involved in the closing will be responsible for submitting the Real Estate Report, referred to as the “reporting person.” FinCEN established a “reporting cascade” to determine who that is. The cascade lists seven common functions in a closing, and the reporting duty falls to the first person on that list who participated in the transaction.

At the top of the cascade is the closing or settlement agent named on the settlement statement. If no such agent exists, responsibility moves to the person who prepared the settlement statement, then to the person who recorded the deed, and so on down the list. Title insurance underwriters, disbursing agents, title-status examiners, and even attorneys who prepare deeds can all be reporting persons depending on their role.

FinCEN also allows flexibility through designation agreements. If multiple professionals are involved in a transaction, they can sign a short written and dated agreement designating one of them—often the title company or settlement agent—to act as the reporting person, regardless of their place in the cascade. Each agreement must be retained for five years but does not have to be submitted with the report. This approach mirrors how many in the industry already divide responsibilities when filing IRS Form 1099-S for property transactions.

What Must Be Reported

As already noted, the Real Estate Report form will collect detailed but straightforward information. The reporting person must identify:

• The property being transferred, including its address and type;
• The transferor (seller);
• The transferee entity or trust (buyer, including names, DOB, addresses, Taxpayer IDs);
• The beneficial owners of that entity or trust; and
• The total consideration paid for the property and method of payment.

Generally, a beneficial owner is any individual who (1) owns or controls at least 25 percent of the entity’s ownership interests, or (2) who otherwise exercises substantial control over it.

For trusts, the concept is broader: trustees, trust protectors, certain beneficiaries, and grantors with the power to revoke or reclaim assets are all considered beneficial owners for reporting purposes. The reporting person can rely on information provided by the transferee or its representative, as long as that person certifies in writing that the information is accurate to the best of their knowledge.

Filing and Recordkeeping

Once the rule takes effect, Real Estate Reports will generally be due within 30 to 60 days of closing, depending on the exact timing. Reporting persons must keep copies of any transferee certifications and designation agreements for five years but are not required to retain the report itself once it has been filed.

Importantly, this rule does not impose broader compliance obligations. Real estate professionals are not required to implement AML programs, file Suspicious Activity Reports, or conduct ongoing monitoring. Their duty is limited to submitting accurate reports for qualifying transactions and maintaining the associated paperwork.

Preparing for Compliance

Although the compliance date seems far off, preparing early will prevent last-minute confusion and reduce risk of penalties. For many title and settlement companies, the rule will require modest updates to intake forms, closing checklists, and internal workflows. For attorneys and independent agents who occasionally act as settlement agents, it may require building a small but consistent process for collecting ownership information.

An effective action plan includes several key steps:

1. Assess your role. Determine who is likely to be the “reporting person” under the cascade.
2. Review transaction patterns. Flag all-cash or non-financed purchases involving entities or trusts.
3. Update intake procedures. Ask early whether buyers are individuals, entities, or trusts, and whether financing will come from a regulated lender.
4. Develop standard forms. Create beneficial-ownership certification and designation-agreement templates.
5. Establish a record-retention system. Ensure documents can be stored securely for five years.
6. Train staff. Front-line employees and agents should understand when reporting is triggered and how to gather required information.
7. Stay current. FinCEN is expected to release additional guidance and technical filing instructions in 2025.

Looking Ahead

FinCEN’s Real Estate Reporting Rule represents a turning point for the industry. While the requirements stop short of imposing full AML regulation, they bring the real-estate market closer to the transparency standards already applied to banks. For most professionals, compliance will be a manageable but important addition to standard closing procedures.

By acting early, firms can avoid last-minute scrambling and demonstrate leadership in ethical, transparent business practices.

As the March 2026 deadline approaches, Tyler Law is available to assist real-estate professionals in understanding the new rule, assessing which transactions will be covered, and developing practical, compliant procedures for collecting and reporting ownership information. Whether you’re a title company, settlement agent, or closing attorney, Tyler Law’s team can help you navigate the implementation process with confidence and ensure a smooth transition when the reporting requirement takes effect.