New FinCEN Rule for Real Estate Transactions
What Real Estate Agents and Customers Need to Know
The Financial Crimes Enforcement Network (FinCEN) has issued a new rule, effective March 1, 2026, requiring title companies and closing attorneys to collect and report information about certain non-financed residential real estate transactions.
What Is the Rule?
This rule applies when residential real estate is transferred by a legal entity or trust in an all-cash purchase or without a loan from a regulated financial institution. FinCEN aims to increase transparency and prevent the use of real estate for money laundering.
Why Is This Information Being Collected?
• To comply with the Bank Secrecy Act
• To help law enforcement identify suspicious activity
• To ensure transparency in high-risk transactions
What Information Will Be Collected?
• Beneficial ownership information
• Identification documents
• Details about the purchasing entity or trust