Effective March 1, 2026
Beginning March 1, 2026, certain residential real estate transactions must be reported to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) under the new Residential Real Estate Reporting Rule (the “Rule”), issued pursuant to the Bank Secrecy Act.
The purpose of this Rule is to increase transparency in a small segment of the residential market that poses a higher risk for money laundering — specifically, certain non-financed purchases made through legal entities or trusts.
Importantly, this new Rule applies only in limited circumstances and does not affect the vast majority of residential transactions.
When must a residential transaction be reported?
A transaction must be reported only if ALL of the following conditions are met:
- The property qualifies as residential real estate;
- The transfer is non-financed (for example, an all-cash purchase);
- The buyer is a covered legal entity or trust (such as an LLC); and
- No regulatory exemption applies.
If any of these elements is not present, reporting is not required.
Fact Sheet – Residential Real Estate Reporting Requirement (PDF)
What Is “Residential Real Estate”?
For purposes of the Rule, residential real estate includes real property located in the United States that is:
- Improved with a structure designed principally for the occupancy by one to four families;
- Vacant land on which a one-to-four family structure is intended to be built;
- A condominium or similar unit designed principally for one-to-four family occupancy; or
- Shares in a cooperative housing corporation.
Examples include, but are not limited to: 1–4 family homes; condominiums and townhomes; co-ops; and certain vacant land intended for residential construction.
What Is a “Non-Financed” Transfer?
A non-financed transfer is one that does not involve a loan from a financial institution that is subject to a federal anti-money laundering (AML) program and Suspicious Activity Report (SAR) obligations. In simple terms:
- Traditional mortgage loan from a bank= Not reportable
- True all-cash purchase by an LLC or trust = Potentially reportable
If institutional financing is involved, the transaction generally falls outside of this Rule because the lender already has AML reporting obligations.
General Fact Sheet Quick Reference Guide (PDF)
What Transactions Are NOT Reportable?
The Rule includes several reporting exemption such as:
- Transfers due to death
- Divorce or dissolution of marriage
- Bankruptcy proceedings
- Certain court-supervised transfers
- Transfers involving qualified intermediaries in 1031 exchanges
- Transfers to many regulated entities (e.g. banks, government authorities, insurance companies, etc.)
Exceptions – Quick Reference Guide (PDF)
Who is responsible for filing?
The Rule establishes a “reporting cascade” to determine who must file. In most residential transactions, the responsibility will fall on the closing or settlement agent. Only one reporting person is required per transaction. Homebuyers are not responsible for filing the report.
Quick Reference Guide for Reporting Persons – Are You a Reporting Person? (PDF)
What Information Is Collected?
The Real Estate Report collects information about the reporting person, the property, the buyer entity or trust (including beneficial owners), the seller, and the source and method of payment. Reports are filed directly with FinCEN and stored in a secure, non-public database. The information is not available to the general public and is not subject to disclosure under the Freedom of Information Act. FinCEN provides a detailed Real Estate Report Information Checklist outlining required data elements.
Residential Real Estate Reporting – Common Questions & Answers (PDF)
What Does This Mean for Realtors®?
Most Realtors® will not be the reporting person under this Rule. However, you should:
- Be aware that some non-financed purchases by LLCs or trusts may trigger federal reporting.
- Expect closing agents to request additional information in certain transactions.
- Help clients understand that this is a federal anti-money laundering requirement — not an MLS rule or brokerage policy.
- Avoid giving legal advice regarding whether a transaction qualifies. Direct technical compliance questions to the closing attorney or settlement agent.
Where to Learn More
FinCEN has published guidance and FAQs at: