FinCEN’s Residential Real Estate Rule goes into effect on March 1
For certain non-financed transfers of residential real estate to a legal entity or trust, the “reporting person” involved in the closing/settlement (often the title/escrow company or settlement attorney, based on FinCEN’s priority list) must file a Real Estate Report using FinCEN’s BSA E-Filing system.
The report is intended to deter money laundering. Reports are due by the end of the month or 30 days, whichever is later.
Columbus REALTORS® is offering a new standard clause, which is available under “Forms” in your member portal. Agents should review this with their broker before implementing.
FAQ
Closings before March 1, 2026, are exempt from this new rule.
A report is required when all three are true…
- The property is residential
- The transfer is non-financed (all cash)
- The buyer is a transferee entity or a transferee trust
There is no sale-price threshold. Low-price transfers can still be reportable.
Gifts also need to be reported (for example, gifting a home into an LLC or trust).
FinCEN’s definition of “non-financed” is specific: a transfer is “non-financed” if it does not involve credit to all transferees that is secured by the property and extended by a lender.
REALTORS® will not be the filer. Real Estate agents are not in the designated “reporting cascade”; however, you may be the party facilitating the report.
The reporting cascade is tied to closing and settlement functions and proceeds as follows:
- Person listed as the closing/settlement agent on the settlement statement
- Preparer of the settlement statement.
- Deed Recorder
- Title Underwriter
The title, escrow, and closing attorneys will drive the workflow. Agents should be ready to help their buyers provide information quickly so the report can be filed.
More information can be found at https://www.fincen.gov/rre
