Beginning on March 1, 2026, the Financial Crimes Enforcement Network (FinCEN) is expected to finally implement new federal reporting requirements aimed at increasing transparency in certain real estate transactions. Pursuant to the Anti-Money Laundering Regulations for Residential Real Estate Transfers, these new requirements are intended to combat money laundering and other illicit financial activity by focusing on higher risk transactions.

Under FinCEN’s Anti-Money Laundering Regulations for Residential Real Estate Transfers, reporting is generally required for non-financed transfers of residential real property when the transferee is a legal entity or trust, rather than an individual. Covered property includes single-family residences, townhouses, condominiums, cooperative units, and residential property consisting of one-to-four family structures, as well as vacant land intended for the construction of such structures.

A transfer is considered “non-financed” if it does not involve an extension of credit secured by the property from a financial institution that is subject to federal anti-money laundering program and Suspicious Activity Report (SAR) obligations. Transactions financed by banks, credit unions, or similar regulated lenders are generally excluded from reporting, as those institutions already conduct customer due diligence and financial crime monitoring under existing law.

When a legal entity acquires residential property via a non-financed transfer, certain information must now be reported to FinCEN. Specifically, the report will include details about the property, the purchase price, and the individuals who ultimately own or control the purchasing entity (often referred to as “beneficial owners”). The reporting obligation is expected to fall on a designated reporting person, such as a title company, settlement agent, or attorney, rather than the REALTOR®. However, REALTORS® should expect these requirements to influence transaction timelines and documentation, especially when entity buyers are involved.

For REALTORS®, the practical impact will be most noticeable in all-cash transactions when the buyer purchases the home in the name of a legal entity. Buyers may need additional time to provide ownership information, and some clients may be surprised by the level of disclosure required. By understanding which transactions are covered and flagging potential reporting issues early, REALTORS® can help manage client expectations, reduce delays, and keep transactions moving smoothly as the new rule takes effect.

This article is of a general nature and reflects only the opinion of the author at the time it was drafted. It is not intended as definitive legal advice, and you should not act upon it without seeking independent legal counsel.