Effective March 1, 2026

Trustee Sale Buyers: Don't Let FinCEN Slow You Down

If you buy trustee sales using an entity or trust—and you're paying cash or using private funds—your purchase may trigger FinCEN reporting. Preparation is everything.

Quick Overview

A nationwide rule from FinCEN requires reporting of certain residential real estate purchases—including many trustee sale purchases—when:

  • The property is residential
  • The buyer uses a legal entity or trust
  • The purchase is all-cash or privately financed (as applicable)

Is Your Trustee Sale Purchase Reportable?

Likely reportable if ALL apply:

  • Property is residential real estate (1–4 units, condo, co-op, or qualifying land)
  • Buyer is a legal entity or trust (LLC, corporation, partnership, trust)
  • Purchase is all-cash or financed by a private/non-regulated lender (including many hard-money or seller-financed loans)

Likely NOT reportable if:

You buy as an individual (personal name)

Always confirm facts with escrow.

What Buyers Must Provide

1

Beneficial Ownership Information (BOI)

  • Legal name
  • Date of birth
  • Residential address
  • Government-issued ID (unexpired)
2

Entity Documents (LLC, Corp, Partnership)

  • Articles of organization/incorporation
  • Operating or partnership agreement
  • EIN
  • List of managers/officers/members (as applicable)
3

Trust Documents

  • Trustee and beneficiary information (as applicable)
  • Relevant portions of the trust instrument
4

Funding Information (Private Financing)

  • Source of funds (as applicable)
  • Private lender details (as applicable)

Who Files?

FinCEN uses a reporting cascade to determine who must file. If a settlement/escrow or closing agent is involved, they may be responsible for filing the report (depending on cascade/designation agreement).

PCT Can Help You Move Fast

Trustee sale timelines are tight. We can help you:

Understand likely requirements early

Gather BOI and documents in an organized way

Reduce the risk of avoidable closing delays

Buying Trustee Sales with an LLC or Trust?

Start the process early—especially if you're purchasing residential property with cash or private funds.

Start FinCEN IntakeCheck if it's reportable

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.