Big changes are coming to residential real estate transactions. Beginning March 1, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) will require a Real Estate Report for certain property transfers. This rule aims to increase transparency and curb illicit financial activity in real estate.
Who Is Affected?
The rule applies to certain non-financed transfers of residential real property—such as all-cash deals or privately financed transactions—when the property is transferred to a legal entity or trust.
Residential property includes:
- Single-family homes/structures (1–4 units)
- Units in multi-family buildings
- Vacant land intended for residential use
- Co-op shares
What Must Be Reported?
The Real Estate Report will include:
- Identify of the Reporting Person
- Property details
- Information about the parties involved (including beneficial owners of entities or trusts)
- Transaction details
Who Files the Report?
Certain professionals involved in the closing process—such as settlement agents or title companies, or lawyers —will be responsible for filing.
Are There Exemptions?
Yes. Common exemptions include:
- Transfers due to death or divorce
- Certain estate planning transfers
- Transfers to bankruptcy estates
- Easements
When and How to File?
- Deadline: By the later of 30 days after closing or the end of the calendar month following closing
- Method: Electronically through FinCEN’s BSA E-Filing System
Penalties for Non-Compliance
Failure to comply can result in civil penalties and, in some cases, criminal penalties.
What Should You Do Now?
If you are involved in real estate transactions—especially all-cash or trust transfers—start preparing now:
- Understand which transactions require reporting
- Identify who will be the reporting party
- Gather necessary information early
Thrash, Carroll & Sanchez Law Group can help you navigate these new requirements and avoid costly penalties. Contact us today at 512-263-5400 or by email at info@TCSlawgroup.com to ensure compliance.