Financial Crimes Enforcement Network

Why is FinCEN Reporting Required?
The federal government has introduced new reporting requirements through FinCEN to help prevent money laundering in real estate.

Certain transactions—especially all-cash purchases made through LLCs, corporations, or trusts—can make it difficult to identify the true buyer. These rules are designed to increase transparency and ensure real estate is not used to hide or move illicit funds.

What Does This Mean for Your Transaction?

Starting March 1, 2026, some residential real estate transactions must be reported. This generally applies when:

• The property is residential
• The purchase is not financed by a traditional lender
• The buyer is a legal entity or trust

In these cases, the title company is required to collect and report basic information about the transaction and the individuals behind the purchasing entity.

What to Expect
You may be asked for additional identification or ownership details

There may be a few extra steps during closing

In some cases, additional fees may apply

These requirements are federally mandated and apply nationwide.

Learn more Here.