FINCEN REQUIREMENTS

Effective March 1, 2026, the U.S. Financial Crimes Enforcement Network (FinCEN) is implementing a Residential Real Estate Report Rule that requires title offices nationwide to collect and report additional data on certain transactions to the government.

​

The Rule, which is intended to help combat and deter money laundering, affects any transfer of ownership interest in which all of the following apply (barring certain exemptions):

​

1. Non-financed – Uses cash, private financing or financing provided by an institution that's not subject to a federal Anti-Money Laundering or Suspicious Activity Report requirement. This can include no-cost transfers (gifts).

2. Residential real property – Includes single-family houses, townhouses, condominiums, and cooperatives, as well as land where the transferee intends to build a structure designed for one- to four-family occupancy.

3. Transferee is an entity (LLC, corporation, partnership, estate, etc.) or a trust.

​​

This flow chart can help you determine whether a transaction is reportable.

​

As part of this Rule, buyers are required to provide additional information and documentation about themselves, their legal entities, and the source of funds used in the reportable transaction. Sellers must also provide some basic identifying information, including taxpayer ID.

​

First Title Company has proactively prepared for the Rule’s implementation, and per FinCEN requirements, we will complete and submit the filing on the behalf of the involved parties.

 

The process requires cooperation from both buyers and sellers. Before closing, we will invite them to use our secure title production platform, Qualia. There, they will be asked to provide the required details and certify that the information they have provided is accurate and com­plete, as required by federal law.

 

This closing step cannot be skipped, and we cannot close a qualifying property transfer until we have collected the required information. Even if the transaction does not close at a title office, FinCEN has established a cascading reporting structure that means all such transfers MUST be reported. Real estate agents do not file, but should have knowledge of this new requirement.

 

We aim to seamlessly incorporate these new requirements for affected transactions and avoid delays. If you or your clients have questions about this new Rule, please reach out to us at 325-653-1421. We are ready to help!