Effective March 1, 2026

Real Estate Agents: Your Buyers Will Feel This

You're not the filer—but you can prevent the most common FinCEN-driven delays with one simple move: set expectations early.

Who Is Affected

A closing is subject to mandatory FinCEN reporting if all three criteria apply:

1

Non-financed purchase

Cash or certain private-money loans

2

Buyer is an entity or trust

LLCs, corporations, partnerships, and many trusts

3

Residential property

1–4 family, condo/townhome, duplex, etc.

What Will Be Required

For impacted transactions, the title/settlement company may need to collect and report:

  • Beneficial ownership information (BOI) for the purchasing entity or trust
  • Legal names, addresses, dates of birth, and taxpayer identification numbers (as required)
  • Copies of unexpired government-issued identification
  • Entity formation documents and control person information (as applicable)

What Agents Should Do — The Agent Playbook

1

Notify clients early

If they plan to buy in an entity or trust and the deal may be non-financed, set expectations before the offer is written.

2

Prepare entity/trust buyers

Explain that escrow/title may request personal identifying information for all beneficial owners—not just the signatory.

3

Manage timelines

BOI collection can take time for complex entities or out-of-state owners. Factor this into your closing timeline.

4

Avoid contract delays

Encourage rapid response to escrow/title requests. Slow responses are the most common source of FinCEN-related delays.

Contract & Timeline Tips

Consider building in:

  • Time for BOI collection/verification (especially with multiple beneficial owners)
  • Clear responsibility for providing requested ID and documents quickly
  • Early escrow opening when entity/trust structure is known

What to Say to Clients

Suggested Plain-English Script

“Because you're buying with an LLC/trust and this may be a non-financed deal, escrow may need additional identity and ownership information for FinCEN reporting. If you respond quickly to requests, we can keep the closing timeline intact.”

Want Help Spotting Reportable Deals?

Send us the scenario early—property type, buyer type, and financing. We'll help you set the right expectations.

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Disclaimer: This information is provided for general educational purposes and does not constitute legal or tax advice. FinCEN applicability can vary by facts and exemptions. Please confirm specifics with your escrow officer or legal counsel.