New FinCEN Reporting Requirements for All-Cash Residential Real Estate Transactions — What You Need to Know

Effective March 1, 2026, a new federal rule from the Financial Crimes Enforcement Network (FinCEN) will require certain all-cash residential real estate transactions to be reported to the U.S. Treasury Department. This reporting obligation may affect many buyers, sellers, lenders, title professionals, and real estate practitioners involved in high-value property transfers.

The rule applies when residential real estate is purchased without financing (all-cash) and the buyer is a legal entity or trust—such as an LLC, corporation, or trust. Covered properties include single-family homes, townhouses, condominiums, co-ops, and small apartment buildings (1–4 units). Vacant land intended for future 1–4 family residential construction can also trigger the reporting requirement.

Under the rule, an electronic Real Estate Report must be filed with FinCEN by the later of:

• The last day of the month in which the closing occurs, or
• 30 days after closing.

The purpose of this new requirement is to enhance transparency in the residential real estate market and to help detect and deter illicit financial activity. Transactions involving certain transfers, like those due to death, divorce, or court order, as well as many involving banks, insurance companies, public companies, and governmental entities, are generally exempt from reporting. There are also exemptions for certain trust transactions and other narrowly defined circumstances.

Who Must File the Report?

The rule establishes a priority list for identifying the responsible filer — typically starting with the closing or settlement agent and, if none is involved, moving through other professionals such as deed filers, title insurers, and fund disbursers. Parties can also enter into a written agreement designating who will file the report, offering flexibility.

What Information Is Included?

The Real Estate Report must include:

• The identity of the person filing the report
• The buyer entity or trust and its beneficial owners
• Individuals signing on behalf of the buyer
• The seller
• Details about the property
• Total purchase price and certain payment information

Buyers (or their representatives) must certify that information about beneficial ownership is accurate.

Recordkeeping Obligations

Although the filer does not need to retain a copy of the report itself, they must keep for five years:

• The buyer’s written ownership certification, and
• Any designation agreement naming the reporting person.

How We Can Help

At McCullough, Goldberger & Staudt, LLP, our attorneys have extensive experience in transactional real estate, land use and zoning, municipal law, trusts and estates, and related areas. We can help clients understand whether a given transaction is reportable under the FinCEN rule, guide compliance with filing and recordkeeping requirements, and work with closing professionals and title agents to address complex ownership and entity issues.

If you are planning or closing a residential real estate transaction that may involve reporting obligations under the new rule, contact our office to discuss how this change may affect your transaction.