Effective March 1, 2026
FinCEN's Residential Real Estate Reporting Rule — The Practical Version
What triggers reporting, what gets collected, and why early coordination matters.
What the Rule Covers
The rule targets certain residential real estate transfers, including:
The "Three-Part Trigger"
A transaction is typically subject to mandatory reporting when all of the following are true:
The property is residential
The transaction is non-financed (all-cash or certain private money), or otherwise not covered by a lender AML program
The buyer (transferee) is a legal entity or trust
If any part doesn't apply, reporting may not be required—but exemptions and facts matter.
What Must Be Collected
For impacted transactions, information collected may include:
- 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 and control documentation (as applicable)
- Trust-related information and relevant portions of trust documentation (as applicable)
Who Files — The Reporting "Cascade"
Reporting responsibility is determined by a cascade of responsibility. When no designation agreement exists, the default reporting person is typically the party listed as the closing/settlement agent on the closing statement.
Designation Agreements
A valid designation agreement can transfer reporting responsibility between parties (for example, a title company, attorney, or other party). When used, parties should:
- Ensure it is properly executed (signed by both parties)
- Retain copies as part of the record file
Record Retention
Copies of:
- The filed report
- Any designation agreement
- Supporting documentation
…must be retained for five (5) years from the date of filing.
Why This Matters
Noncompliance can carry significant consequences, so the best strategy is simple:
Identify it early. Collect early. Close clean.
Want to Know If Your Deal Triggers Reporting?
Use the quick checker to get a directional answer, then confirm with escrow.
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.