What real estate pros need to know about FinCEN’s new Residential Real Estate reporting rule

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Short version: the Financial Crimes Enforcement Network (FinCEN) is a U.S. Treasury bureau that gathers financial-crime intelligence. It finalized a rule requiring one party in certain non-financed (all-cash or privately financed) residential real-estate closings to file a Real Estate Report when the buyer (the “transferee”) is an entity or a trust. The rule is nationwide and — after FinCEN’s postponement — goes into effect March 1, 2026. FinCEN.gov+1

Below I’ll explain what FinCEN is, why this reporting exists, exactly which transactions are reportable, what information must be collected, who files, timing/retention, and why realtors should prepare clients when an entity or trust is buying a home.

1) What is FinCEN — and why a real-estate rule?

FinCEN (Financial Crimes Enforcement Network) is the Treasury bureau that collects and analyzes reports required under the Bank Secrecy Act to detect money laundering, terrorist financing, and other illicit finance. The residential-real-estate reporting rule is intended to reduce the use of anonymous entities and trusts to launder criminal proceeds through “all-cash” residential property purchases and to give law enforcement accountable, secure access to who actually controls or benefits from a purchased property. FinCEN.gov+1

2) What kinds of transactions must be reported?

A “reportable transfer” (i.e., one that triggers a Real Estate Report) is any non-financed transfer of an ownership interest in residential real property where the transferee is an entity (LLC, corporation, partnership, estate, etc.) or a trust. Transfers to natural persons (individuals) are generally not covered. The rule covers typical residential property (one-to-four family houses, condos, co-ops) and land intended for such residential use. FinCEN.gov

Important clarifications:

  • “Non-financed” means there is no extension of credit by a financial institution that is subject to AML/SAR obligations that is secured by the property. If a lender exists but is not subject to AML/SAR obligations, the transfer may still be treated as non-financed for this rule. FinCEN.gov
  • Several categories of transfers are not reportable (examples: transfers incident to death, divorce, transfers supervised by a U.S. court, certain like-kind exchanges, and transfers for which there is no reporting person). The list in the rule and FAQs should be checked for edge cases. FinCEN.gov

3) Who must file the Real Estate Report? (the “reporting person”)

Only one business involved in the closing is the reporting person. FinCEN establishes a “reporting cascade” of functions (so the party that performs the first applicable function will generally be the reporter unless the parties execute a written designation agreement). The cascade (in order) includes:

  1. The person listed as the closing/settlement agent on the closing statement;
  2. If none, the person who prepares the closing/settlement statement;
  3. If none, the person who files the deed for record;
  4. Title-insurance underwriter for transferee’s owner’s policy;
  5. The person who disburses the greatest amount of funds in connection with the transfer;
  6. The person who provides an evaluation of the title status;
  7. The person who prepares the deed (if none of the others apply). FinCEN.gov

Parties can instead sign a designation agreement (a short written agreement retained for 5 years) designating which of them will be the reporting person. This is often how title companies agree to be the filer. FinCEN.gov

4) Exactly what information must be collected and reported?

When a transfer is reportable, the Real Estate Report requires identifying information for:

  • The reporting person (who is filing).
  • The residential real property (address, parcel, etc.).
  • The transferor and transferee (names and contact details).
  • Individuals representing the transferee (agents, signatories).
  • The beneficial owners of the transferee entity or transferee trust.

For each beneficial owner of a transferee entity or beneficial individual connected to a transferee trust the reporting person must collect and report: full name, date of birth, residential address, citizenship, and taxpayer identification number (TIN). The report also asks for the total consideration paid and certain payment details. FinCEN.gov

A few additional collection rules to note:

  • The reporting person may rely on information provided by the transferee or the transferee’s representative, but for beneficial-ownership information the transferee (or its representative) must certify in writing that the information provided is true to the best of their knowledge. That certification must be retained for five years. FinCEN.gov

5) Deadlines, retention, and timing (national — including Ohio)

  • FinCEN’s FAQs originally set the final rule effective date at December 1, 2025, but FinCEN issued exemptive relief postponing residential real estate reporting until March 1, 2026. The rule is nationwide—so the March 1, 2026 effective date applies in Ohio as well as every other state. (Always check FinCEN updates for possible further changes.) FinCEN.gov+1
  • Filing deadline: A Real Estate Report must be filed by the later of (a) the last day of the month following the month in which closing occurred, or (b) 30 calendar days after the date of closing. In practice that gives approximately 30–60 days after closing to file. FinCEN.gov
  • Record retention: The reporting person must keep the transferee’s written certification and any designation agreement for 5 years. The reporting person is not required to retain a copy of the Real Estate Report itself. FinCEN.gov

6) Why realtors (and their clients) must prepare — practical implications

Because the rule targets entity and trust buyers, real estate agents should proactively prepare any client who intends to buy through an LLC, corporation, partnership, or trust. Practical consequences and recommended actions:

  1. Tell clients up front what will be collected. If the purchaser is an entity or trust, expect the title/closing party to request: the entity/trust name and formation info; the identity and contact info of any person signing and representing the entity/trust; for each beneficial owner/trust individual — name, DOB, residential address, citizenship, and TIN; and the total purchase consideration and payment details. FinCEN.gov
  2. Collect executives/beneficial-owner info early. Entities often expect privacy; many clients will be surprised that files must include owners’ residential addresses and DOBs. Collect that info early so closings aren’t delayed.
  3. Expect certification forms. The transferee (or its representative) must certify in writing the accuracy of the beneficial-owner info. Title companies will accept their own form or incorporate certification language into existing closing paperwork. FinCEN.gov
  4. Coordinate with title companies and lenders. Firms that underwrite owner’s policies commonly become the reporting person (or accept designation). Realtors should have a brief process map: who will be the reporting person, who will sign the certification, and where the documents will be retained. Many title companies and settlement agents are already building workflows and client checklists. FinCEN.gov
  5. Be transparent with privacy-conscious clients. Explain that the Real Estate Report is not public: FinCEN will keep the data in a secure BSA database with strict access limits; it is not posted for public search. Still, clients who value privacy may prefer alternative ownership structures or timing choices that fall into exemptions — but they should get legal counsel before changing structure to avoid unintended tax or legal effects. FinCEN.gov+1

7) Quick checklist for realtors / title companies (what to request from an entity/trust buyer)

From the FinCEN FAQs, the minimum set you should be ready to collect and hold (and, if you are the reporting person, to report):

  • Transferee entity or trust name and mailing address.
  • Name and contact of the person(s) representing the transferee at closing.
  • For each beneficial owner / trust individual: full legal name, date of birth, residential address, citizenship, and taxpayer identification number (SSN or EIN as applicable).
  • Total purchase consideration (sale price) and payment information.
  • A written certification (signed by transferee or transferee representative) that the beneficial-owner information provided is accurate to the best of their knowledge.
  • If your firm prefers to avoid being the reporting person, a designation agreement (signed, retained for 5 years) that designates another eligible party as the reporting person. FinCEN.gov

8) Final notes & next steps

  • Effective date: Plan for March 1, 2026 (FinCEN’s posted postponement). Start updating listing forms, checklists, and client intake scripts now. FinCEN.gov
  • Training: Train staff at brokerages and title companies on how to gather and store certifications properly. Title companies commonly will offer guidance and forms. FinCEN.gov
  • Legal counsel: Clients with complex ownership (offshore entities, multi-tiered ownership structures, or privacy concerns) should consult tax/real-estate counsel before restructuring ownership solely to avoid reporting. The rule contains exemptions and nuances best navigated with counsel. FinCEN.gov

 

Attached is a quick checklist of some of the information that clients will need to provide.