FinCEN Real Estate Reporting Rule: What Realtors® and Cash Buyers Need to Know

Beginning March 1, 2026, title companies must collect and report identity and banking information about entities and trusts that buy one- to four-family residential properties without traditional financing to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Transactions where an entity buyer uses a non-traditional lender are also reportable. These new requirements are the latest in a long series of anti-money laundering (AML) laws and rules that began with the Bank Secrecy Act in 1970.

What to know:

• A “reportable transfer” is any cash or non-traditionally financed residential sale (one- to four-family homes, planned residential land, or co-op shares) where the buyer is an entity or trust—not an individual.
• The rule applies to reportable transactions that close on or after March 1, 2026. If a transaction is scheduled to close before that date, it is not affected unless closing is delayed to March 1, 2026 or later, in which case it must be reported.
• There is no minimum transaction amount. Any purchase could trigger reporting, and certain conveyances without consideration are also reportable.
• Names, dates of birth, addresses, beneficial ownership details, and banking information will be collected through our secure online portal.
• All information must be submitted prior to closing. Incomplete information will delay closing.
• If a beneficial owner is also an entity, ownership and control information must be provided for that entity as well.
• These reporting requirements do not apply to transactions where buyers take title in their own names or to transactions that are financed by lenders that already operate compliant AML programs.

The purpose of the new rule is to identify for FinCEN the individuals who own and control corporations, limited liability companies, trusts, and other entities that buy real estate for cash or with non-traditional financing. Paying cash for residential real estate has been shown to be an effective way for criminals to launder money. Under prior rules, this information was collected only in geographically targeted areas such as Miami and New York City. Now, the rule applies to covered transactions across the United States.

You can rely on John Bethell Title to handle FinCEN reporting with the same attention to detail and customer experience you’ve come to expect. Please reach out with any questions.