REAL ESTATE AGENTS
What you need to know about the new FinCEN Reporting Rule
STARTING MARCH 1, 2026 certain residential real estate transactions must be reported to the Financial Crimes Enforcement Network (FinCEN). This rule is designed to combat money laundering and increase transparency in real estate transactions.
Let’s work together to ensure smooth closings and full compliance.
Update your workflows
Train your team
Educate your clients
Coordinate with title and settlement professionals
What Agents Need to Know
While settlement agents (including attorneys acting as settlement agents) are responsible for filing, real estate agents play a critical role in identifying reportable transactions.
You'll Need To:
Ask early if the buyer is an LLC, corporation, or trust and immediately alert the settlement agent if there are any changes.
Confirm whether financing involves a lender with an AML (Anti-Money Laundering) program.
Help Buyer and Seller clients timely gather or meet with appropriate professionals to gather:
- Entity/trust details
- Beneficial ownership information (Buyer only)
- Payment sources and bank details (Buyer only)
Why it Matters
Failure to comply can result in civil and criminal penalties, including imprisonment. Agents must be proactive to avoid delays and protect clients.
What Transactions are Reportable
A TRANSACTION MUST BE REPORTED IF:
☑ The property is residential real estate (including condos, townhomes, co-ops, and vacant land intended for 1–4 family structures)
☑ The transfer is non-financed (e.g., all-cash) or where the lender does not have an anti-money laundering (AML) program
☑ The buyer is a legal entity or trust
☑ No exemption applies
Common Exemptions
NO REPORT IS REQUIRED FOR:
- Transfers due to death, divorce, or bankruptcy
- 1031 reverse exchanges
- Specific, highly-regulated trusts and entities
The rule itself has many other exemptions. Your customer may need to consult with their attorney or other advisors to help assist with determining whether an exemption may be applicable. Exemptions to the Rule can be found at the FINCEN website, https://www.fincen.gov/rre-faqs, and in the US Code of Federal Regulations, see 31 C.F.R. 1031.320(b), (n)(10), (n)(11).
NOTE: This information is for your reference only and is not intended to represent the only approach to any particular issue. These guidelines should not be construed as legal, financial or business advice. We recommend you consult your legal counsel and subject-matter experts to determine appropriate policies, procedures and strategies applicable to your office or organization. @ 2025 Fidelity National Financial, Inc.