In August 2024, FinCEN issued a final rule requiring industry professionals to report information to FinCEN about non-financed transfers of residential real estate to a legal entity or trust. What does this mean for you? In a nutshell…

• Effective December 1, 2025 – comment period ended January 13, 2025.
• Requires a closing/settlement agent in a covered transaction to complete and submit to FinCEN a Real Estate Report with specific information about the transaction. The report must be completed by:
  • Whoever prepares the settlement statement
  • In a split-closing, whoever prepares the buyers settlement statement
• Applies to all transactions involving the cash purchase of residential real estate in the U.S., and all territories, where the buyer is a legal entity or applicable trust.
  • Cash, seller-financed transactions, or lines of credit involving a loan by a bank that is not required to have an anti-money laundering program are treated as non-financed transfers that potentially must be reported.

• Reports must be filed by the later date of either: (1) the final day of the month following the month in which the reportable transfer occurred; or (2) 30 calendar days after the date of closing.
• Expected required information for reporting:
  
  • Information on the reporting person
  • Closing date
  • Property address and full legal description
  • Transferee/Buyer information
  • Person(s) associated with the transferee (authorized signers and beneficial owners)
  • Transferor/Seller information
  • If the Transferor is Trust, provide the trustee’s information
  • Purchase price
  • Payment Information, including bank account details for sourcing funds
  • Detailed payment information for payments made on behalf of the Transferee/Buyer
    

FinCEN has not yet issued the final version of the Real Estate Report form.

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