FinCEN’s Real Estate Reporting Rule Effective March 1, 2026

New rules regarding the sale of residential real estate from the Financial Crimes Enforcement Network (FinCEN)—a bureau of the U.S. Treasury—became effective March 1, 2026.

FinCEN will require a Real Estate Report to be filed for non‑traditionally financed or‑cash transfers of residential property when the buyer is a legal entity or a trust. This is a nationwide requirement with no minimum purchase price. 

A transaction is generally reportable if all three of these are true:

• The property is residential real estate (1–4 family homes, condos, townhomes, co‑ops, and certain land intended for such use).
• The buyer is an entity or trust (not an individual person).
• The transaction is cash or non‑traditionally financed, meaning there is no traditional institutional mortgage from a lender that has federal anti‑money‑laundering requirements.  This will include financing by hard money lenders and seller financing.

If all three apply, a federal report filing is required by the closing agents unless a specific allowable exemption exists.

The Real Estate Report to FinCEN contains information identifying the reporting person, details of the residential real property being transferred, information about the transferor (seller), information about the transferee entity or trust, and identities of individuals representing the transferee entity or trust in the transaction.

FinCEN states the new rule aims to curb money laundering and the use of shell companies to hide ownership of real estate.  More details at FinCEN website:

• FinCEN Residential Real Estate Rule (Official Site) – https://www.fincen.gov/rre

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