FinCEN’s new RRE Anti-Money Laundering regulations bring important changes to residential real estate. Get clear guidance on what’s required and how to move forward with confidence.
Settlement agents must report non-financed residential real estate transfers to FinCEN when the Buyer is an entity or trust. Beginning March 1, 2026, transactions covered by this rule must be reported.
Transactions must be reported if:
The property is residential real estate
The transfer is non-financed
The buyer is a legal entity or trust
A transfer may be exempt:
Due to death, divorce, or bankruptcy
1031 reverse exchanges
Specific, highly regulated trusts and entities
*Exemptions are very specific and customers may need to consult with their counsel to ensure exemptions are applicable.
While settlement agents are responsible for filing, real estate agents play a key role in identifying reportable transactions and preparing clients for a smooth transaction. As real estate agent, you can support the settlement team in collecting the required information timely and prevent delays.
Proactive Steps to Take:
Ask if the buyer is an entity or trust and immediately alert the settlement agent if there are any changes.
Confirm whether the purchase is non-financed.
Help Buyers and Sellers gather or meet with appropriate professionals to:
Beginning March 1, 2026, covered transactions must be reported to FinCEN. Staying up to date on your clients’ information keeps closings on track and supports straightforward reporting.
Real estate agents must be proactive to avoid delays and protect clients.
Penalties include:
$100K+ civil per transaction
$250K+ criminal, plus up to 5 years in prison for intentional violations
Together, we can simplify the process, stay compliant, and ensure smooth closings.
Starting March 1, 2026, settlement agents must report non-financed, residential real estate transfers wherein the buyer is an entity or trust must be reported to FinCEN.
Most traditional homebuyers obtaining a mortgage secured against the property being purchased will not see any changes.
However, Transactions Must Be Reported If:
The property is residential real estate
The transfer is non-financed
The buyer is a legal entity or trust
A transfer may be exempt:
Due to death, divorce, or bankruptcy
1031 reverse exchanges
Specific, highly regulated trusts and entities
*Exemptions are very specific and customers may need to consult with their counsel to ensure exemptions are applicable.
As your settlement agent, we’re committed to making this process as simple as possible. The RRE places the responsibility of reporting primarily on your settlement agent. This means we handle the heavy lifting, including determining whether your transaction is reportable, gathering required data, and submitting the report to FinCEN timely.
In some instances, we may need to ask you for additional information. This helps us ensure the report is complete.
We ask that you provide any requested information promptly, so we can move forward without delay and keep your closing on track.
Here’s our promise to you:
We’ll explain clearly what we need and why
We’ll protect your information with care
We’ll handle all reporting accurately and on time
We’ll facilitate a streamlined experience for a smooth closing
With your cooperation and our guidance, your journey toward homeownership will be smooth and worry-free. We’re here to navigate the process so you can focus on the exciting parts of your move.
Starting March 1, 2026, non-financed, residential real estate transfers wherein the buyer is an entity or trust must be reported to FinCEN.
We’re committed to empowering independent title agents with the tools and guidance needed to navigate today’s evolving real estate environment. With FinCEN’s upcoming reporting rule taking effect, title agents must coordinate closely with settlement agents, real estate professionals, and buyers to confirm important information and ensure timely reporting.
If you have questions about your upcoming closing or are unsure about whether the rule your transaction, our team of experts is available to provide clarification and more information. We’re committed to helping you navigate this new reporting rule for a smooth closing.
Settlement agents must report non-financed residential real estate transfers to FinCEN when the Buyer is an entity or trust. Beginning March 1, 2026, transactions covered by this rule must be reported.
The Financial Crimes Enforcement Network (FinCEN) is a U.S. Department of Treasury bureau established in 1990 with a mission to “safeguard the financial system from illicit activity” by collecting and analyzing financial transactions.
The closing or settlement agent is the primary person responsible for filing the report. FinCEN has established a reporting cascade for who is responsible for reporting if the settlement agent is not involved in a transaction. The cascade is as follows:
Additional information from buyers and sellers must be collected for covered transactions. Failure to comply can result in civil and criminal penalties, including imprisonment. Agents must be proactive to avoid delays.
A transfer may be exempt:
*Exemptions are very specific and customers may need to consult with their counsel to ensure exemptions are applicable.
Exemptions to the Rule can be found at the FinCEN website, https://www.fincen.gov/rre-faqs, and in the US Code of Federal Regulations, see 31 C.F.R. 1031.320(b), (n)(10), (n)(11).
Limited information about the sellers will have to be included in the report filed at closing.
Visit the FinCEN website or contact a title company near you with any questions.
