What You Need to Know About FinCEN’s New Real Estate Reporting Requirements

Starting March 1, 2026, a new federal rule issued by the Financial Crimes Enforcement Network (“FinCEN”) will require certain parties who are involved in real estate closings to submit Real Estate Reports regarding non-financed (cash) transfers of residential real estate to an entity (such as an LLC, corporation or partnership) or a trust. This new reporting requirement will affect buyers, sellers, lenders, title companies and real estate counsel.

The intent of the new federal rule is to increase transparency in residential real estate transactions and to attempt to deter money laundering. Certain transfers (i.e., due to death, divorce, court order and other situations) may be exempt from reporting.

For purposes of the new FinCEN reporting requirements, “residential real property” means:

• single-family houses;

• townhouses;

• condominiums;

• shares in a cooperative housing corporation;

• buildings designed for occupancy by 1-4 families, including properties with a single-family residence that is located above commercial space; and

• land on which the buyer intends to build a structure for occupancy by 1-4 families.

Real Estate Reports must be filed electronically with FinCEN by the later of:

     (i) the last day of the month following the month in which the date of closing occurred; or

     (ii) 30 calendar days after the date of closing.

If you have questions regarding the new FinCEN residential real estate reporting requirements or need assistance determining whether a pending transaction might be exempt from these requirements, please contact Wendy Reutebuch.

This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.