A major change is coming to residential real estate transactions, and it will affect how certain deals close starting in 2026.
The FinCEN Real Estate Report is a new federal anti–money laundering (AML) reporting requirement issued by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Historically, FinCEN reporting applied only to transactions in New York City’s five boroughs and a limited number of jurisdictions nationwide. Beginning March 1, 2026, however, the new framework will replace existing rules and expand reporting requirements across all of New York State and the country, introducing new disclosure obligations for specific transactions.
Importantly, FinCEN reports are not public records, but compliance will be mandatory for covered transactions.
Understanding whether a report is required—and who is responsible for filing it—will be critical to avoiding closing delays.
When Is a FinCEN Real Estate Report Required?
A FinCEN Real Estate Report must be filed only when all of the following conditions are met:
- The property is a residential 1- 4 family home, condominium, or co-op
- The buyer is an entity, such as:
- LLC
- Corporation
- Partnership
- Trust
- The transaction does not involve a traditional bank mortgage, including:
- All-cash purchases
- Private or hard-money loans
- Seller financing arrangements
Important Notes:
- There is no minimum purchase price. This is an important change to the current rules, in which FinCEN was only required when the amount of the transaction was $300,000 or more
- Transactions involving no consideration are included
Key Notes of FinCEN Reporting
As FinCEN’s new real estate reporting requirements take shape, buyers, sellers, and professionals need to understand the core rules that determine when a transaction must be reported. Certain transactions are expressly excluded from FinCEN reporting, including:
-
Transfers resulting from inheritance
-
Divorce
-
Bankruptcy proceedings, or other court-supervised transfers
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Transactions under Section 1031 of the IRS code (like-kind exchanges)
-
No-consideration transfers to a trust where the individual (or the individual and their spouse) is the grantor or settlor
Who Is Responsible for Filing the Report?
FinCEN establishes a hierarchy of responsibility to determine which party must file the report. The obligation falls to the first applicable party in the following order:
- Closing or Settlement Agent
- Settlement Statement Preparer
- Deed Filer
- Title Insurance Underwriter
- Largest Fund Disburser
- Title Evaluator
- Deed or Legal Instrument Preparer
The responsible party may designate another party lower in the hierarchy to file the report, but only if both parties agree, and a written designation agreement is executed for that specific transaction.
How the Reporting Process Affects Closing
Before closing, the designated reporting party will request the required information from all of the applicable parties. The transaction cannot close until all required information is received.
This makes early coordination essential – especially in entity or trust purchases that do not involve institutional financing.
Why This is a Big Deal in Real Estate
The FinCEN Real Estate Report significantly expands transparency requirements for certain residential transactions. Deals involving entities, trusts, cash, or private financing will require substantial upfront documentation, and missing information can halt a closing.
For buyers, sellers, attorneys, and agents, understanding these rules early helps avoid last-minute disruptions.
How Liberty Land Abstract Helps
At Liberty Land Abstract, we stay ahead of regulatory changes so our clients don’t have to. Our team works closely with attorneys, buyers, sellers, and agents to identify reporting requirements early, coordinate information collection, and keep transactions moving forward smoothly.
As FinCEN reporting becomes part of the standard closing landscape, proactive planning - and an experienced title partner - will make all the difference.