What You Need to Know About FinCEN's New Residential Real Estate Reporting Rule

Photo by Scott Graham on Unsplash‍ ‍

Effective March 1, 2026

A significant new federal regulation took effect this month. If you're buying residential real estate through an LLC, trust, or other legal entity — with cash or private financing — it likely applies to you.

What Is It?

The Treasury Department's Financial Crimes Enforcement Network (FinCEN) now requires a federal report to be filed on non-financed transfers of residential real property to legal entities and trusts. The rule is permanent and nationwide, replacing a prior patchwork of geography-based requirements. The driving concern: more than 40 percent of non-financed real estate transfers were conducted by individuals or entities that were the subject of Suspicious Activity Reports filed by financial institutions.

When Is a Transaction Reportable?

Three conditions trigger reporting: the buyer is a legal entity or trust, title is being transferred, and the deal is "non-financed." A reportable transfer is any transfer not financed by an institutional lender — private or hard money loans don't count as institutional financing. There's also no dollar threshold, meaning low-value transfers and even gifts may be reportable. Residential property covers 1–4 unit properties, vacant land intended for 1–4 unit housing, and individual units like condos or co-ops.

Who Files and What's Required?

In most transactions, the closing or settlement agent — such as a title company or attorney — will be responsible for filing. The report must be filed electronically and includes payment details and beneficial ownership information for the buying entity or trust, generally anyone who owns 25% or more or exercises substantial control.

What Should You Do?

If your deal involves an entity buyer with cash or private financing, assume it's reportable. Buyers using layered entity structures or trusts should review those structures in advance, since FinCEN does not permit filing reports with missing required information. Talk to your title company and legal counsel early.

For details, visit fincen.gov/rre.