Beginning March 1, 2026, a new federal reporting requirement will materially impact certain residential real estate transactions across the United States.If you represent buyers purchasing in LLCs, work with cash investors, handle private financing, or frequently close entity-based acquisitions, this rule is directly relevant to your practice.
The rule, issued by the Financial Crimes Enforcement Network (FinCEN), establishes mandatory reporting obligations for certain non-financed residential transfers involving legal entities and trusts.
Official FinCEN overview:
https://www.fincen.gov/residential-real-estate-rule
FinCEN FAQ:
https://www.fincen.gov/residential-real-estate-reporting-rule-faqs
Why This Rule Was Adopted
FinCEN implemented this rule to increase transparency in the residential real estate market and address concerns about money laundering through entity-based property purchases.
Historically, certain all-cash acquisitions by LLCs and trusts made it difficult for regulators to identify the true beneficial owners of property. This rule establishes a nationwide reporting framework to address that concern.
Which Transactions Are Reportable?
A transaction is reportable only if all of the following apply:
- Residential Real Property
The property includes:
- 1–4 family homes
- Condominiums
- Townhomes
- Cooperative units
- Certain vacant land intended for residential construction
Commercial real estate is not currently covered.
- The Transfer Is Non-Financed
The transaction does not involve financing from a bank or regulated financial institution subject to federal AML obligations.
This generally includes:
- Cash purchases
- Seller financing
- Private lending
- Hard money loans
Conventional institutional mortgages typically exempt the transaction.
- The Buyer Is a Legal Entity or Trust
The transferee is:
- An LLC
- A corporation
- A partnership
- A qualifying trust
Transfers directly to individuals in their personal names are generally not reportable.
- No Exception Applies
FinCEN provides exemptions for certain transfers, including those resulting from:
- Death
- Divorce
- Court orders
- Bankruptcy
- Certain business reorganizations
The full list is available in the FinCEN FAQs linked above.
What Must Be Reported?
For reportable transactions, a Real Estate Report must be electronically filed through FinCEN’s BSA E-Filing System.
The report includes:
- Property address and legal description
- Date of closing
- Total consideration paid
- Method of payment
- Entity or trust information
- Beneficial ownership information (based on ownership/control thresholds)
- Information regarding the signing individual
- Seller information
The information is confidential and not publicly accessible.
Who Is Responsible for Filing?
FinCEN created a “reporting cascade” that determines who must file if the transaction qualifies.
In many Florida transactions, this will typically be:
- The settlement agent
- The title company
- The closing attorney
Parties may designate responsibility in writing, but the designated reporting person remains legally responsible for compliance.
Filing Deadline
The report must be filed by the later of:
- 30 calendar days after closing, or
- The last day of the month following the month of closing
This generally provides a 30–60 day reporting window.
How Our Firm Is Handling This
Because we handle a high volume of residential closings, we are implementing structured compliance procedures now.
We will utilize FinCENRealEstateReport.com to securely collect required beneficial ownership and transaction data and to facilitate timely filing.
Our goal is to ensure compliance without disrupting transaction timelines.
Frequently Asked Questions
Does this apply to all closings?
No. Only certain non-financed residential transfers to entities or trusts are covered.
Does it apply to commercial property?
No. The current rule applies only to residential real estate.
Does it apply to financed transactions?
Generally no, if financing is provided by a regulated financial institution.
Is the reported information public?
No. Reports are confidential and maintained within secure federal systems.
What happens if required information is not provided?
Failure to file when required may result in civil or criminal penalties under federal law.