Approaching March 1st Implementation for FinCen Real Estate Reporting

Earlier in February, we shared a detailed overview of the new FinCEN Residential Real Estate Rule and what it means for your business. As a reminder, the rule applies to reportable transfers that close on or after March 1, 2026

For an in-depth description, visit our first blog here.

FinCEN’s official resource page is available at: https://www.fincen.gov/rre
 

With just days to go, here is a quick refresher.

What triggers reporting?

A transfer is reportable only if all four conditions are met:

  1. The property is residential
  2. The transfer is non-financed
  3. The buyer is a legal entity or trust
  4. No exception applies

In practical terms, this most often means certain all-cash purchases involving LLCs, corporations, or trusts.

Traditional financed transactions through regulated lenders will generally not be impacted.

Who files?

In most cases, the closing or settlement agent will be the reporting person. FinCEN outlines a specific “reporting cascade” to determine responsibility if multiple professionals are involved.

As a broker, you are unlikely to be filing the report, but you should be identifying transactions that may fall into this category and coordinating early with your title partner.

Filing Timeline

Reports must generally be filed 30 to 60 days after closing, depending on timing.

NMAR Has Updated the Purchase Agreement

To support brokers and reduce last-minute confusion, NMAR has added language to the Purchase Agreement notifying buyers about this new reporting process.

This disclosure is designed to inform buyers early in the transaction that certain all-cash purchases involving entities or trusts may require information to be submitted to FinCEN after closing.

If you have transactions closing on or after March 1, make sure you are using the updated form and reviewing the new language with your clients.

Final reminders for this week

  • Review any closings scheduled on or after March 1
  • Confirm whether buyers are entities or trusts
  • Verify whether financing meets the rule’s definition
  • Prepare clients for possible additional documentation requests

FinCEN’s official Residential Real Estate Rule page includes FAQs, reference guides, and filing instructions:    https://www.fincen.gov/rre

If you missed our original blog, we encourage you to review it for a deeper breakdown of exceptions, definitions, and practical examples. March 1 is almost here. A little preparation now will help avoid surprises at the closing table.