FinCEN Residential Real Estate Reporting Rule – Effective March 1, 2026

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN’) has postponed the compliance date for its “Residential Real Estate Reporting Rule” to March 1, 2026. The rule is designed to increase transparency in the U.S. residential real estate market and to combat money laundering. Starting March 1, 2026, real estate transactions that qualify as a “reportable transfer” will need to comply with FinCEN’s reporting requirements.

What is a “Reportable Transfer”?

A ‘”reportable transfer” occurs when all of the following criteria are met:

1. The property is residential real property, such as single-family homes, townhouses, condominiums, and cooperatives.
2. The transfer is non-financed, meaning there is no mortgage or institutional financing involved.
3. The transferee (buyer) is a legal entity or trust (e.g., LLC, corporation, partnership, trust), not an individual.
4. No applicable statutory or regulatory exemption applies.

If all conditions are satisfied, the transaction will typically require submission of a “Real Estate Report” to FinCEN by a designated “reporting person.”

Who is a “Reporting Person”?

To determine who must file the Real Estate Report, FinCEN applies a “reporting cascade” comprised of a list of different functions that a real estate professional may perform in a reportable transfer. Settlement agents are first on the reporting cascade, meaning the settlement agent in a reportable transfer will often be the “reporting person”. However, a person that performs a function within the reporting cascade may enter into a written agreement designating another person within the reporting cascade as the reporting person.

What Other Information is Reported? 

Once effective, the Real Estate Report will include information on:

• the reporting person (name, address, contact details);
• the transferor (seller);
• the transferee entity or trust acquiring the property;
• all beneficial owners and individuals signing on behalf of the transferee;
• the residential property being transferred (address and legal description);
• transaction details, including total consideration paid and payment details.

When To File?

A Real Estate Report must be filed electronically through FinCEN’s BSA E-Filing System, due by the later of:

• the last day of the month following the month in which the transaction closed; or
• 30 calendar days after closing.

This means closings occurring in March 2026 may require filings in April or May 2026, depending on timing.

What To Do Next?

To comply with the Residential Real Estate Reporting Rule by March 1, 2026, those involved in residential real estate transactions should:

• Review transactions likely to close on or after March 1, 2026;
• Determine who will serve as reporting person for each transaction;
• Track Real Estate Report filing deadlines for upcoming closings;
• Update closing checklists and client questionnaires to capture required reporting data.

If you would like assistance evaluating how this new reporting requirement may apply to your transactions, please reach out to an attorney in our Real Estate team.