Understanding the New FinCEN Residential Real Estate Reporting Rule
What Homeowners, Title Companies, and Real Estate Professionals Need to Know
Beginning March 1, 2026, a major change takes effect for the U.S. real estate industry. The Financial Crimes Enforcement Network (FinCEN) will begin enforcing its new Residential Real Estate Reporting Rule, designed to increase transparency in all-cash real estate transactions and prevent money laundering through anonymous property ownership.
If you buy, sell, or close real estate — especially without traditional financing — this rule will affect how your transaction is reported.
Here’s a breakdown of what’s changing, who’s responsible, and what you’ll need to know.
When Does the Rule Take Effect?
The new rule officially goes into effect on March 1, 2026.
Any qualifying residential real estate transaction closing on or after that date may require a report to be filed with FinCEN. Until then, the current Geographic Targeting Orders (GTOs) remain in place for certain metro areas.
What Transactions Must Be Reported?
FinCEN’s rule applies to specific non-financed (all-cash) purchases of residential real property in the United States.
A transaction is reportable when all of the following apply:
The property is residential, meaning a 1–4 family home, condo, co-op, or residentially-zoned vacant land.
The purchase is non-financed — there’s no mortgage or loan from a financial institution already subject to anti-money-laundering (AML) laws.
The buyer (transferee) is an entity or trust, not an individual.
No exemption applies (see below).
Key takeaway:
If a trust or company buys a home without a mortgage, the closing professional may need to file a Real Estate Report with FinCEN — even if the purchase price is low.
Who Files the Report?
The rule assigns responsibility through what’s called a “reporting cascade.” That means FinCEN identifies a specific order of who must file if multiple professionals are involved.
The closing or settlement agent listed on the closing statement
If none, the person who prepared the closing statement
If none, the person who records the deed
If none, the title insurance underwriter
If none, the person disbursing the greatest amount of funds
If none, the title abstractor or searcher
If none, the person who prepared the deed
If more than one party fits these descriptions, they can enter a written designation agreement identifying which one will handle the reporting.
In most cases, the title or settlement company will be the reporting party — so if you’re working with Legacy Title, we’ll take care of the details for you.
When Must the Report Be Filed?
The Real Estate Report must be filed electronically through the BSA E-Filing System within:
30 calendar days after closing, or
By the last day of the month following the month of closing,
whichever gives more time.
Reporting parties must also keep supporting records for five years — including beneficial ownership certifications and any designation agreements.
Which Transactions Are Exempt?
FinCEN carved out several exemptions to avoid duplicating reporting or capturing personal, family, or court-supervised transfers. Some of the most common exemptions include:
Transfers resulting from death, such as inheritance or estate administration
Transfers incident to divorce or legal separation
Transfers to a bankruptcy estate
Transfers supervised by a U.S. court
Transfers to government agencies or regulated financial institutions
No-consideration transfers by an individual (or married couple) to a trust of which they are the grantor or settlor
1031 exchanges involving qualified intermediaries
These exemptions mean most routine family transfers and estate settlements won’t trigger a report — but business or investment entities purchasing homes typically will.
Do No-Consideration (Gift) Transfers Need to Be Reported?
In some cases, yes.
If a home is transferred without payment (a “gift”) to a trust or entity, and it doesn’t fall under one of the specific exemptions, it may still be reportable.
For example, gifting property to an LLC could require a filing — while transferring it to your own revocable living trust likely would not.
That’s why it’s important to let your title company or attorney review the details of your transfer.
What This Means for the Real Estate Industry
The new FinCEN rule is the most comprehensive federal reporting requirement ever applied to U.S. residential real estate.
It’s designed to increase transparency about who truly owns real estate purchased through companies or trusts — without burdening everyday homebuyers.
At Legacy Title Agency, we’re preparing now to ensure our processes, technology, and training are ready well before the March 1, 2026 effective date. That means you can close with confidence knowing your transaction is compliant, secure, and handled the Legacy way.
The Bottom Line
The real estate industry is about to take a big step toward greater transparency — and preparation is key.
If you’re planning to buy, sell, or transfer property through a trust or entity, now’s the time to understand how the FinCEN rule could affect your closing.
Have questions? The Legacy Title team is here to help you navigate these changes — clearly, confidently, and compliantly.
📍 Learn more at www.LegacyClosings.com
Legacy Title Agency — Protecting Your Property, Your Family, Your Legacy.