What Buyer and Sellers need to know about FinCEN's Residential Real Estate Reporting rule
- eskayarr
- 20 hours ago
- 1 min read
What Transactions are Reportable?
A transaction must be reported if:
The property is residential real estate (including condos, town-homes, co-ops, and vacant land intended for 1–4 family structures)
The transfer is non-financed (e.g., all-cash) or the lender does not have an anti-money laundering (AML) program
The buyer is a legal entity or trust
No exemption applies
What type of information will be collected from sellers?
General Information about the individual, legal entity, or trust, including Social Security and/or Tax ID number(s)
What type of information will be collected from buyers?
General information about the legal entity or trust
Beneficial Ownership Information about the legal entity or trust (this may be complex depending on corporate/trust structure)
Personal Information about the individuals who are identified as Beneficial Owners
Source of Funds Information, including Bank Account Numbers and Account Ownership
What Should Buyers Do to Prepare for Potentially Reportable Closings?
Determine as soon as possible, prior to closing, whether the property will be held by the Buyer's legal entity or trust
If the Buyer is using a legal entity or trust, contact the settlement agent for the transaction to begin their unique processes for determining reportability and how information will be collected prior to closing
If the Buyer does not know answers to the information that must be collected, contact an attorney, accountant, or other advisor who can assist with completion of the Collection form
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