On March 1, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) implemented new reporting requirements that modify how non‑financed real property transfers must be documented. These new obligations arise under FinCEN’s Residential Real Estate Rule, which is designed to combat money laundering in segments of the real estate market that have historically operated with little federal oversight.  Because non‑financed deals do not involve regulated financial institutions, FinCEN views these transactions as vulnerable to illicit activity. 

What Transactions Are Reportable?

For a transaction to be reportable under the new rule, all of the following must be true: (i) title to residential real property is transferred; (ii) the transfer is non-financed (as described below); (iii) the transferee is a legal entity or trust; and (iv) no exemption applies. 

For purposes of the reporting requirement, residential real property includes property that currently contains a dwelling designated for 1-4 families (this includes single-family homes, multi-family homes, and townhomes), land intended for construction of a 1-4 family dwelling, condominiums, and co-ops.   

Non-financed, for purposes of the new reporting requirement, means any transfer transaction without financing from an Anti-Money Laundering (“AML”)-regulated institution, such as a bank, credit union or mortgage lender. Purchases or transfers financed with cash, seller-financed transactions, non-monetary transfers to family members or trusts, and financing from a non-AML institution would be subject to the new rule.

What Information Must Be Reported?

The report must contain the identities of transferee entities or trusts, beneficial owners, certain information on transferors, signing individuals, financial consideration, and other transaction details. Reporting persons must retain documentation for at least five (5) years.

Who Must File?

Reporting persons include settlement agents, title insurance agents, escrow agents, and attorneys involved in closings.

When Is the Report Due?

For reportable transfers closing on or after March 1, 2026, the Real Estate Report must be filed within 30 calendar days of closing or by the last day of the month following the month in which closing occurred, whichever is later.

Key Exemptions

Certain transfers fall outside the Rule, including transfers by court order, transfers relating to death or divorce, some trust‑related transfers done for estate planning purposes, transfers to bankruptcy estates, and some 1031 exchanges.

Practical Impacts

Settlement and title agents are adjusting workflows to comply with new data‑collection demands. Buyers and sellers relying on LLCs or trusts may experience additional documentation requirements and expenses for the data collection and filing of the Real Estate Report. 

What This Means for FGKS Clients

These reporting obligations introduce new compliance considerations for real estate investors, developers, private lenders, and others involved in real estate transfers. FGKS is available to advise clients regarding compliance, exemptions, structuring transactions, and responding to regulatory inquiries.

For assistance with FinCEN reporting requirements, please contact FGKS Law.