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The Financial Crimes Enforcement Network (FinCEN) adopted a new residential real estate rule that will have a direct impact on purchasers of homes in the United States. Starting March 1, 2026, FinCEN's new residential real estate rule will require certain individuals involved in real estate closings and settlements to file reports with FinCEN. These reports, called “Real Estate Reports,” must be submitted for certain non-financed transfers of residential real property to legal entities or trusts. This rule focuses on, but is not limited to, high-risk transactions in major metropolitan areas, requiring settlement agents or legal professionals to report beneficial ownership information, often bypassing traditional mortgage-based checks.
What Triggers a Reporting Requirement?
A Real Estate Report must be filed on any “reportable transfer.” A transfer is reportable when all four of the following conditions are met:
- Residential real property is transferred;
- The transfer is non-financed (i.e., no mortgage or loan is involved);
- The property is transferred to a legal entity or trust; and
- No exception applies.
The rule captures any transfer of an ownership interest in residential real property regardless of the amount, including gifts. However, certain exceptions apply, including transfers resulting from death, divorce, bankruptcy, court supervision, and some like-kind exchanges.
Who Must File the Report?
Only one person in a given transaction—the “reporting person”—is required to file a Real Estate Report. The reporting person is identified in one of two ways:
- Through the reporting cascade described in the rule (which establishes a priority order based on the person's role in the transaction); or
- Through a written designation agreement between the parties in the cascading order.
When and How to File
The Real Estate Report, along with filing instructions and technical guidance, is available on the FinCEN website. Reports must be filed by the later of: (1) the last day of the month following the closing, or (2) 30 calendar days after the closing date.
Key Takeaways for Real Estate Professionals
Real estate professionals who may be involved in reportable transactions should familiarize themselves with the rule's requirements. Those who expect to file reports should develop appropriate policies and procedures to ensure compliance by March 1, 2026.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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