FinCEN
Real Estate Reporting Requirements
New Federal Reporting Requirement for Certain Real Estate Transactions
Beginning March 1, 2026, certain residential real estate transactions will require mandatory federal reporting to the U.S. Department of the Treasury.
If a residential property is transferred without traditional bank financing and the buyer is an entity or trust, a FinCEN Real Estate Report must be filed.
This rule applies nationwide in all 50 states.
When Is a Transaction Reportable?
A transaction is reportable if all three of the following apply:
1. The transaction is non financed
This typically includes:
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Cash purchases
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Private financing
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Hard money loans
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Seller financing
If there is no traditional bank mortgage with anti money laundering oversight, the transaction may trigger reporting.
2. The buyer is an entity or trust
This includes:
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LLCs
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Corporations
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Partnerships
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Trusts
3. The property is 1 to 4 family residential
Single family homes, duplexes, triplexes, and fourplexes are included.
If all three conditions are met, the transaction is generally reportable unless a specific exemption applies.
Possible Exemptions
Some transactions may qualify for exemption, including:
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Divorce or dissolution transfers
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Bankruptcy estate transfers
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Court ordered transfers
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Certain probate related transfers
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Certain estate planning transfers
Your settlement provider will confirm whether an exemption applies to your transaction.
What Information Is Required?
If your transaction is reportable, the settlement provider will file the required report through a secure system. You will receive a secure link to complete a short online form.
Most simple structures take about five minutes to complete. More complex entities or trusts may require additional time.
If Buying as an Entity
You will typically need to provide:
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Entity legal name, address, and tax identification number
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Individuals who own 25 percent or more
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Individuals with substantial decision making authority
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If another company owns part of the entity, identification of the real individuals behind that company
If Buying Under a Trust
You will typically need to provide:
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Trust name and date executed
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All trustees
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Grantors who can revoke or withdraw assets
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Beneficiaries with rights to demand or withdraw assets
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If a trustee is a company, identification of the real individuals behind that company
For Each Listed Individual
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Legal name
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Date of birth
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Home address
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Taxpayer identification number
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Government issued identification
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For buyers, payment source details
Seller Information
Sellers may be required to provide basic identifying information, including a taxpayer identification number.
Why This Matters
Failure to comply with federal reporting requirements can result in significant penalties, including:
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Substantial criminal fines
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Possible imprisonment
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Ongoing civil penalties
Completing the required information promptly helps prevent delays at closing and ensures compliance with federal law.