Beginning March 1, 2026, a new federal FinCEN rule will require reporting for certain non-financed transfers of residential real estate.
Who Does This Apply To?
The rule applies when:
- The property is purchased without traditional bank financing, and
- The buyer is a legal entity or trust (LLC, corporation, partnership, or trust).
This primarily affects:
- All-cash entity purchases
- Some seller- or privately-financed entity purchases
- Investor and higher-end transactions
Who Is Not Affected?
- Buyers obtaining traditional mortgage financing
- Individuals purchasing property in their own name (not through an entity or trust)
What Is Required?
The designated reporting professional (typically the title or escrow company) must file a Real Estate Report with FinCEN that includes:
- Beneficial ownership information (the individuals behind the entity)
- Identification details
- Transaction information
Importantly:
- The reporting obligation falls on the closing professional — not on REALTORS®
- This is a federal anti-money laundering reporting requirement, not a new tax or transfer restriction
What This Means for REALTORS®
- Most financed transactions will see no change
- Entity buyers in non-financed deals should be educated early to prepare documentation
- Title companies are complying with federal law, not adding local red tape
Key Take Aways:
- The rule increases transparency for certain entity-based cash purchases, while leaving the majority of traditional financed homebuyers unaffected.
- If your clients are planning a quick close (cash), you might want to check with your broker and/or title to help manage timing expectations.
Learn More:
For more information plan to attend NAR’s upcoming webinar on March 11th.
NAR FAQs related to the FinCEN Residential Real Estate Rule are now live.
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