DISCLAIMER: THE INFORMATION CONTAINED HEREIN IS SOLEY FOR EDUCATIONAL PURPOSES. IT IS NOT LEGAL ADVICE OR LEGAL AUTHORITY AND IS ONLY THE AUTHOR’S INTERPRETATION OF PROPERTY LAW ON THE SPECIFIC ISSUES DISCUSSED.
Effective March 1, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new Residential Real Estate Reporting Rule aimed at combating money laundering in real estate transactions.
If you are a real estate professional, investor, developer, or entity buyer, understanding this rule is essential to staying compliant and avoiding potential penalties.
What Is the FinCEN Residential Real Estate Reporting Rule?
The Anti-Money Laundering Regulations for Residential Real Estate Transfers require certain professionals involved in non-financed real estate transactions to submit a Real Estate Report to FinCEN.
This rule specifically applies when:
- The buyer is a legal entity or trust
- The transaction is non-financed (no traditional mortgage from a regulated financial institution)
This does not apply to transactions where property is transferred directly to an individual.
What Qualifies as Residential Real Property?
Under the rule, “residential real property” includes:
- Single-family homes
- Townhouses
- Condominiums
- Cooperative housing units
- Vacant land intended for 1–4 family residential use
If you’re unsure whether your property qualifies, working with an experienced real estate attorney can help clarify your obligations.
Learn more about our real estate services: https://www.adamsandsullivan.com/real-estate
What Is a Reportable Transfer?
A reportable transfer includes:
- Non-financed transactions involving residential real estate
- Transfers to entities or trusts
- Transactions financed by lenders not subject to AML or SAR requirements
These types of transactions are often scrutinized because they may present a higher risk for money laundering activity.
Who Is Responsible for Filing the Report?
The rule introduces a “reporting cascade”, meaning responsibility falls on the first applicable party involved in the transaction:
- Closing or settlement agent
- Person preparing closing documents
- Recorder of the deed
- Title insurance underwriter
- Escrow or funds disbursement party
- Title evaluator
- Deed preparer
If none of these roles apply, a report may not be required.
In some cases, parties can designate a reporting person by written agreement.
What Information Must Be Reported?
The Reporting Person must submit:
- Their own identifying information
- Details about the entity or trust purchasing the property
- Beneficial ownership information, including:
- Full legal name
- Date of birth
- Residential address
- Citizenship
- Taxpayer Identification Number
- Information about the seller
- Full transaction details
Beneficial ownership data must be certified by the buyer (or their representative) and retained for five (5) years.
For guidance on compliance and documentation, visit our business and corporate law services page:
https://www.adamsandsullivan.com/business-law
When Must the Report Be Filed?
Reports must be submitted:
- By the last day of the month following closing, OR
- Within 30 days of closing, whichever is later
Missing deadlines could result in regulatory issues, making timely filing critical.
Why This Rule Matters
This new regulation introduces additional compliance steps for:
- Real estate professionals
- Title companies
- Attorneys
- Investors using LLCs or trusts
It also increases transparency around beneficial ownership, aligning with broader federal anti-money laundering efforts.
If you frequently work with entity-based transactions, it’s important to review your processes now.
How Adams & Sullivan Can Help
At Adams & Sullivan, we assist clients with:
- Real estate transactions and development
- Entity structuring and compliance
- Regulatory guidance under evolving federal laws
Whether you are buying, selling, or facilitating transactions, our team can help ensure you remain compliant under the new FinCEN requirements.
Contact our team: https://www.adamsandsullivan.com/contact
Learn more about our attorneys: https://www.adamsandsullivan.com/attorneys
About the Author
Travis M. Jacott
Adams & Sullivan, PC, LLO
Travis joined Adams & Sullivan in 2015. Mr. Jacott’s practice focuses on litigation, real estate development and transactions, municipal law, and estate planning.
During his time at Adams & Sullivan, Travis has assisted the firm with various matters, including extensive legal research, preparing legal briefs that were filed in numerous adjudicative bodies, including the U.S. District Court for the District of Nebraska as well as the Eighth Circuit U.S. Court of Appeals.
Growing up in Sarpy County, Travis M. Jacott earned his Bachelor’s degree from the University of Nebraska-Omaha and went on to graduate from Creighton University School of Law and was admitted to practice law in the State of Nebraska.