New Real Estate Reporting Rules Begins March 1, 2026
- Kim Clark
- Feb 17
- 2 min read
Updated: Mar 24
UPDATE: https://www.nar.realtor/washington-report/court-decision-on-fincen-residential-real-estate-rule On March 19, 2026, a federal district court in Texas vacated the Financial Crimes Enforcement Network's (FinCEN) Residential Real Estate Anti‑Money Laundering (AML) Rule, holding that the agency exceeded its statutory authority under the Bank Secrecy Act (BSA) and violated the Administrative Procedure Act (APA). As a result, the rule has been set aside. FinCEN posted a statement noting, “In light of a federal court decision, reporting persons are not currently required to file real estate reports with FinCEN and are not subject to liability if they fail to do so while the order remains in force.”
------------------
A reminder for Investors, Brokers, and anyone using an Entity or Trust and doing non-traditional deals. This rule aims to curb money laundering by identifying beneficial owners.
The FinCEN Residential Real Estate Rule mandatory reporting begins March 1, 2026. Any sale that closes on March 1st or later is subject to this one, which is approaching quickly.
This does not apply to every sale. It’s narrowly focused on certain transactions designed to improve transparency.
Here’s when a Real Estate Report is required. All three must apply:
1. Non-Regulated Bank Financing
Cash, seller financing, private lending, hard money
Conventional bank loans (already covered by AML rules)
2. Buyer Is an Entity or Trust
LLCs, corporations, partnerships, most trusts
Individuals buying in their personal name
3. Residential Property
1–4 unit homes, condos, townhomes, co-ops
Vacant land if intended for a 1–4 unit residential build
Who files the report?
Typically the settlement agent, title company, or closing attorney involved in the transaction. Required Information are details regarding the buyer entity/trust, beneficial owners, and the property itself.
For reference purposes only here is a copy of the Real Estate Report (link)
Potential Impacts on Closings:
Missing or incomplete information can slow the process
New reporting steps may add time, especially early in implementation
Title and settlement providers may incur new compliance costs
These may eventually be reflected in closing service fees
Bottom line:
If you’re buying residential property through an entity using cash or private financing, expect to provide beneficial ownership information at closing starting March 1, 2026.
Learn more: www.fincen.gov/rre
Comments