FinCEN Residential Real Estate Rule
Are you getting ready for the new rule?
On March 1, 2026, a major regulatory change takes effect: the FinCEN Residential Real Estate Rule. Title and settlement professionals nationwide will be required to file reports on certain non-financed residential transfers to entities or trusts. This expansion replaces the temporary and patchwork Geographic Targeting Orders (GTOs) with a permanent, nationwide obligation.
For agents and attorneys, the rule introduces new responsibilities in closings where the transferee is an LLC, corporation, or trust even when the transfer amount is small, or no money changes hands. Understanding who must file, what information to collect, and how to stay compliant is critical to ensuring your business’s compliance.
Nationwide application (all 50 states, DC, Puerto Rico, territories)
Applies to non-financed transfers involving entities & trusts.
No minimum dollar threshold
Civil & criminal penalties for non-compliance (up to $250,000)
What Transactions Are Covered?
A transfer is reportable if:
It is a non-financed transfer (no loan to all transferees from a bank/credit union subject to AML & SAR obligations).
No dollar threshold applies — even gifts or $1 transfers can be reportable.
What Information Must Be Reported?
On the FinCEN Real Estate Report, the reporting person must file:
- Buyer details: entity/trust info, beneficial owners, and the signing individual.
- Beneficial owner info: full name, DOB, residential address, citizenship, tax ID.
- Property & seller details.
- Closing details: date, total consideration (any amount), payment method (cash, wire, check, money order, cryptocurrency).
- Certification: BOI must come from the transferee or its rep, in writing, certified as accurate.
Who Must File?
The reporting obligation falls on the “reporting person”, determined by the reporting cascade:
- Settlement agent listed on the closing or settlement statement
2. Preparer of the closing or settlement statement
3. Person who records the deed or transfer instrument
4. Person who underwrites an owner’s policy for the transferee
5. Person disbursing the greatest funds in the transaction
6. Person evaluating title status
7. Preparer of the deed or stock certificate (for co-ops)
A designation agreement allows parties in the cascade to assign reporting responsibility in writing.
Deadlines & Penalties
Due Date
The later of (a) last day of the month following closing, or (b) 30 days after closing.
Filing Method
Electronic only, through FinCEN’s BSA E-Filing System.
Penalties
Non-compliance falls under Bank Secrecy Act civil & criminal penalties, including fines and potential imprisonment.
What This Means for Agents & Attorneys
Add a reportability check to your intake workflow.
Use a BOI Certification Form to collect and document transferee info.
Decide your default approach to being the reporting person or using designation agreements.
Train staff on deadlines and record retention (5 years for certifications and designation agreements).
GTOs vs. the Residential Real Estate Rule
Who Is Responsible for Filing?
Closing/settlement agent
Preparer of closing or settlement statement
Recorder of deed or instrument transferring title
Title insurance provider (owner’s policy)
Greatest funds disburser
Title evaluator
Deed preparer
If there is no person involved in a transaction performing any of these functions, then a report will not be required.