Starting March 1, 2026, the federal government will require certain residential real estate transactions to be reported to the Financial Crimes Enforcement Network (FinCEN).
This new requirement applies to specific high-risk, non-financed real estate transfers and is designed to increase transparency and prevent illicit financial activity, especially in all-cash purchases involving LLCs or trusts.
If you’re a buyer, seller, or real estate professional, here’s what you need to know.
What Is the New FinCEN Real Estate Report?
FinCEN is introducing a new Real Estate Report that must be filed for certain residential real estate transfers considered high-risk for money laundering.
The report is required for reportable transfers, which generally include:
- Non-financed (all-cash) transfers
- Residential real property
- Transfers made to an entity (like an LLC) or a trust
This is a federal requirement, not a new policy created by local law firms, title companies, or real estate agents.
Who Is Responsible for Filing the Report?
This is one of the most important clarifications:
Buyers and sellers are NOT responsible for filing the report.
Instead, the obligation falls on certain real estate professionals involved in the closing or settlement, such as:
- Title companies
- Settlement or escrow agents
- Closing attorneys (in some transactions)
FinCEN uses a “cascade” system to determine which professional must file, typically starting with the party responsible for preparing or handling the settlement.
Are Real Estate Agents Responsible for Filing?
No, real estate agents do not file the report.
However, agents will be affected because:
- Clients may be asked for additional information during closing
- All-cash buyers using LLCs or trusts may have extra compliance steps
- Agents will likely receive questions from clients about why this information is required
Understanding the rule helps agents set expectations early and avoid last-minute surprises at closing.
How Does This Affect Buyers and Sellers?
This rule mainly impacts buyers who:
- Purchase residential property with cash
- Buy through an LLC or trust
- Are involved in a transaction considered high-risk under FinCEN’s rules
If applicable, buyers may be asked to provide beneficial ownership information as part of the closing process. This information is reported directly to FinCEN and is not made public.
For sellers, the impact is typically minimal, but the overall closing process may include additional compliance steps handled by the closing professional.
Why Is FinCEN Requiring This?
FinCEN has identified all-cash residential real estate purchases through entities and trusts as a common method for hiding the source of illicit funds.
This reporting requirement is intended to:
- Increase transparency in real estate transactions
- Deter money laundering and financial crimes
- Align real estate closings with other federal anti-money-laundering regulations
What Should You Do Now?
With the rule taking effect in March 2026, there’s time to prepare:
- Real estate agents should familiarize themselves with the requirement so they can educate clients
- Buyers using LLCs or trusts should expect additional information requests during closing
- Closing professionals should begin planning compliance workflows and filing processes
Final Takeaway
The new FinCEN Real Estate Report is not optional; it’s a federal requirement that applies to certain all-cash residential transactions involving entities or trusts.
While clients don’t file the report themselves, being informed can help transactions move more smoothly and prevent delays at closing.
If you have questions about how this rule may affect an upcoming transaction, speaking with a knowledgeable legal or real estate professional early can make all the difference.
The attorneys at The Orlando Law Group help with all types of legal issues for business owners and individuals in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.
If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.
Last Updated on January 19, 2026 by The Orlando Law Group
