FinCEN Real Estate Reporting
If you work in residential real estate—especially in title, settlement, or closing services—you need to be aware of a significant new FinCEN reporting requirement scheduled to take effect for closings that start March 1, 2026. This rule will introduce nationwide reporting obligations for certain residential real estate transactions that previously fell outside federal anti-money laundering oversight.
FinCEN (Financial Crimes Enforcement Network) is a bureau of the U.S. Department of the Treasury. Its mission is to combat money laundering, fraud, terrorist financing, and other financial crimes through data collection and enforcement under the Bank Secrecy Act (BSA).
Since 2016, FinCEN has required reporting of high-value real estate transfers in certain metropolitan areas under Geographic Targeting Orders (GTOs). Those temporary, location-specific orders are now being replaced with a broader, nationwide rule.
Beginning March 1, 2026, reporting will be required for real estate conveyances where the property is:
Residential real estate (contains 1–4 family units and some kinds of vacant land) AND
Non-financed (all-cash) transactions, or transactions financed by non-institutional lenders (lenders not subject to AML/SAR obligations), AND
The property is being transferred into an entity (e.g. a corporation or LLC) or trust.
Unlike prior GTOs, this requirement is not limited by property value or geographic area. It may apply to transactions anywhere in the United States. There are specific exceptions, but most residential cash deals into an entity or trust will fall within the rule.
The FinCEN Real Estate Report must be submitted to FinCen within 30 calendar days of closing. The report is extensive, with over 100 data fields, and must be completed in full to be considered filed. Required information includes details of the person reporting, as well as information about the property, the transferor (seller), the transferee (buyer entity or trust), the beneficial ownership, and financial aspects of the transaction, including: purchase price, source of funds (including account #’s) and method of payment. Records must be securely maintained by the filer for at least five years.
The rule establishes a hierarchy of reporting responsibility. Parties may designate and authorize a party lower on the cascade to submit the report, but this designation must be accomplished by a written agreement between parties for each transaction. If the parties do not otherwise designate a reporting person, the hierarchy of responsibility is as follows:
Closing or Settlement Agent
Settlement Statement Preparer
Deed Filer
Title Insurance Provider
Largest Fund Disburser
Title Evaluator
Preparer of the Deed or Legal Instrument
A “Settlement Statement” is not necessarily a formal form- it could be an email or memo stating what money is being distributed to which party. Parties should determine early in the transaction who the reporting person will be, what information must be gathered and how data will be transmitted and stored securely. The requirement will add time to the transaction, expand liability and require enhanced procedures for safeguarding sensitive data.
Title and settlement professionals should begin to get prepared. You should set up workflows, make sure your data security procedures are sufficient, document procedures for designating reporting responsibility, and train staff.
Failure to report may result in serious civil and criminal penalties under the Bank Secrecy Act, including fines up to $5,000 per day for violations, including filing delays, and imprisonment.
Our office is actively preparing for these changes and can help you understand reporting responsibilities, workflow adjustments, and compliance procedures. To keep up with current news and changes within the industry please follow us on LinkedIN.
FinCen Frequently Asked Questions: https://www.fincen.gov/rre-faqs
FinCen Report for Reference: https://www.fincen.gov/system/files/2025-09/RER-Form-508C.pdf (For information purposes only- this form cannot be used for reporting).
FinCen Reporting Site:BSA E-Filing System - Welcome to the BSA E-Filing System (This link will bring you to the BSA e-filing system site to complete and submit the report. You will need to create an account to actually file)