FinCEN kicks off Residential Real Estate Reporting

Share this post
Residential Real estate Reporting Rule

FinCEN Residential Real Estate Reporting Explained

New Rules for Home Transfers to Trusts

As of March 1, 2026, the beneficial owners of certain residential real estate transactions must be reported to FinCEN, this is called the Residential Real Estate Reporting Rule. The Reporting Rule requires additional reporting when residential property transfers to a legal entity or a trust. FinCEN’s goal is to prevent real estate from being used to hide ownership or move money anonymously.

Reporting is triggered when you transfer noncommercially financed residential real estate to a legal entity like an LLC or trust. Reports must be filed for any reportable transfer that closes on or after March 1, 2026. Transactions closed before that date do not have to be reported.

Understanding FinCEN Residential Real Estate Reporting

The FinCEN Residential Real Estate Rule requires that reports be filed when a transaction meets all of the following criteria:

  •     The property is residential real estate, AND
  •     The transfer is non-financed, AND
  •     The transferee (buyer) is a legal entity or trust, AND
  •     There are no exemptions that apply.

Real estate transferred as a result of death, whether by will or trust, will not trigger reporting requirements.

Reports must be filed electronically through the BSA E-Filing System by the later of:

-The last day of the month following the month in which closing occurs; or

-30 calendar days after the day of closing. Reports are maintained by FinCEN and will not be publicly available.

For many years, FinCEN has exempted persons involved in real estate closings and settlements from comprehensive regulation under the Bank Secrecy Act (BSA). However, FinCEN’s experience with its existing reporting programs revealed significant rates of illicit activity in non-financed transfers of residential real estate. In fact, among the transactions previously reportable to FinCEN under geographic targeting orders, more than 40 percent of non-financed real estate transfers were conducted by individuals or entities that were the subject of Suspicious Activity Reports (SARs) filed by financial institutions. The Residential Real Estate Rule replaces the geographically based framework with a permanent, nationwide reporting requirement.

In estate planning it is very common to retitle a residential property to a trust. Fortunately, these common types of estate planning transfers do not trigger reporting requirements. Before any transfer of residential real estate or mixed-use property contact us to review if your transaction requires reporting to FinCEN. At AJM&A, we are here to help you with any new mandates and rules that affect our clients.