The FinCEN Residential Real Estate Reporting rule took another turn this week.

FinCEN has filed a notice of appeal to the U.S. Court of Appeals for the Fifth Circuit to a decision that vacated the rule

If you’ll recall, the Residential Real Estate Rule was vacated on March 19, 2026, in the case of Flowers Title Company v. Bessent, in which the Eastern District of Texas granted summary judgment for the plaintiff, holding that FinCEN exceeded its statutory authority under the Bank Secrecy Act. The decision stated that the agency didn’t sufficiently justify that all non-financed residential real estate transactions are categorically suspicious, and therefore could not require broad reporting under the rule.

The FinCEN Residential Real Estate Rule originally went into effect on March 1, 2026, and requires reporting of certain non-financed residential real estate transfers involving legal entities and trusts. However, following the Flowers decision, FinCEN issued guidance clarifying that reporting entities are not currently required to file real estate reports and won't face liability for noncompliance.

At this time, the reporting requirements remain paused while the appeal is pending.

As with any regulatory development, though, requirements and guidance can evolve quickly.  That’s why SoftPro wants to make sure our customers are prepared should the rule be reinstated. We’ve been actively developing data collection and e-Filing solutions to help customers meet FinCEN requirements as originally defined.

We will continue to monitor this situation closely and provide updates as additional guidance becomes available.  Our focus remains, as always, on delivering flexible, integrated solutions that can adjust alongside changing regulatory requirements for our customers.

Want to stay up-to-date on all the important industry news, regulatory changes, and compliance updates? Subscribe to our blog.