1. Are you working with a buyer or seller that is an LLC, trust, corporation or other entity?
2. Does the transaction involve residential real estate?
3. Does the buyer plan to pay in cash or with financing from a hard money lender or other source?

If the answers to these questions are “yes”, starting on March 1, 2026, the owners and operators of the entity must comply with a new federal reporting rule that is intended to deter money-laundering.

What Does the Rule Do?

FinCEN, the Financial Crimes Enforcement Network, an arm of the U.S. Treasury, is mandating a nationwide reporting requirement that requires the individuals who own or operate trusts, LLCs, corporations, and other entities, upon “non-financed” transfers of residential real estate to provide personal information that the closing attorney will file with the federal government after the closing. The Residential Real Estate Rule is to help combat and deter money laundering in “non-financed” purchases involving entities and trusts. By requiring the Real Estate Report, FinCEN is increasing transparency in residential real estate transactions.

The regulation will require closing attorneys and settlement agents to submit reports with personal information about the owners and operators of these entities.

When Does It Take Effect?

The rule takes effect on March 1, 2026. Transactions closing on or after this date may be subject to reporting. The Real Estate Report must be filed by the later of 30 days after closing or the last day of the month following the closing date. In most cases, this gives reporting parties about 30 to 60 days to submit the report.

What Types of Transactions Are Impacted?

A transaction is generally affected when all three conditions are met:

• The property is residential real estate (1- 4 dwelling units or land to be used to build residential property)
• The transfer is “non-financed” (cash or private lending but no traditional mortgage from regulated lenders)
• The buyer is a legal entity or trust

Does This Only Apply to Cash Transactions?

While many qualifying transactions are “all-cash”, if the lender is not a bank, credit union, or similar regulated institution with anti-money laundering and Suspicious Activity Report requirements, the transaction will likely be treated as a “non-financed” deal for reporting purposes.

Watch our recent webinar on this topic or join NAR's free webinar on March 11th at 2PM ET.