New reporting requirements for some residential transactions
March 01, 2026
NOTE: A federal judge in Texas has vacated the Financial Crimes Enforcement Network’s (FinCEN) nationwide anti-money laundering rule requiring title insurance companies to report details of millions of residential real estate transactions. While this decision continues to work its way through the courts, many title companies are continuing to collect the information required and charging a fee to collect the information.
As of March 1, 2026, certain residential real estate transfers now require reporting to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The rule is intended to prevent money laundering that can be hidden when trusts and other legal entities acquire residential property. Not only is money laundering illegal, but it also can distort markets and disadvantage legitimate buyers and sellers.
Which Transfers Must be Reported?
A real estate transfer must be reported when all four of the following conditions are met:
- The property is residential real property (improved or unimproved).
- The property is transferred to a certain type of entity or trust—not to an individual.
- The transfer is not financed, or the lender does not have Anti-Money Laundering (AML) program requirements and Suspicious Activity Report (SAR) reporting obligations in place.
- The transfer does not fall under an exception outlined in the rule.
Who Must File the Report?
Typically, real estate license holders will not be responsible for filing the report. That task will usually fall to a real estate settlement or closing professional involved in the transfer, such as the closing or settlement agent, title insurer, escrow agent, or attorney. FinCEN has published a “reporting cascade” to determine who is responsible for filing the report.
How Will You Know if a Report is Required?
To determine whether your client’s transaction is reportable and what additional steps may need to be taken, you can contact the title company.
What Information Must be in the Report?
The report must include:
- The property being transferred
- Each legal entity or trust receiving the property
- Each beneficial owner of any legal entities or trusts involved in the transfer
- Each individual signing on behalf of a legal entity or trust
- Each individual, legal entity, or trust that is transferring the property
- Any payments made for the property.
What Your Clients Should Know
It is imperative that you are aware of these new reporting requirements in case your clients have questions. Given the potential for criminal liability associated with closings involving reportable transfers, title companies will not close unless the necessary information is provided. Doing so promptly can help avoid closing delays. There likely will be additional costs associated with this reporting requirement, which will probably be the responsibility of the buyer.
Future Considerations
Sellers accepting a contract on a transfer that could be subject to report may want to consider whether they wish to enter into the transaction. As noted previously, listing agents should reach out to the title company to determine what additional steps may need to be taken to determine whether the transfer will be subject to the new reporting requirements. Parties may also want to consult their own private attorneys about the matter.
Where to Get More Information
Visit fincen.gov/rre for details about the rule, a guide to rule exceptions, what must be in the report, and answers to other common questions.