There has been a significant development regarding the FinCEN Residential Real Estate (RRE) Reporting Rule.

On March 19th, a federal judge in the Eastern District of Texas issued a temporary stay of the rule, making it unenforceable while the legal process proceeds.

What Happened

Late in the afternoon on March 19, a federal court temporarily blocked enforcement of the FinCEN RRE Rule.

This is not a final decision. The rule is suspended while an appeal is expected to proceed expeditiously through the courts.   A similar situation occurred with the Corporate Transparency Act, which was reinstated shortly after a temporary pause, so a quick return of this rule is possible.

What This Means for Your Transactions

For now, reporting is not required.

However, this is likely a temporary pause, not a permanent change. If the rule is reinstated, it could happen quickly and with little notice, which may impact transactions already in progress and create delays at closing.

What We Recommend Right Now

Even with the pause in place, stay prepared:

• Continue identifying transactions involving entity or trust buyers
• Work closely with your title and settlement partners
• Prepare clients for possible information requests if the rule resumes
• Avoid changing your workflow too quickly based on this temporary ruling

Consistency now will help prevent last-minute issues later.

NMAR Purchase Agreement & New Information Sheet

To support brokers and provide clarity to buyers and sellers, the New Mexico Association of REALTORS® (NMAR) has taken two important steps:

• Updated Purchase Agreement language to inform buyers about the FinCEN reporting process
• Released a new FinCEN Information Sheet (Form 2360) for buyers and sellers

This information sheet is designed to ensure parties understand the rule, what triggers reporting, and what information may be required. It also confirms that the rule applies to transactions closing after March 1, even if they went under contract earlier .

On page 2 of the NMAR Information Sheet, it outlines potential impacts to transactions, including:

• Possible delays if required information is not provided
• Additional costs from title or reporting parties
• The need for coordination with the reporting person (often the title company)

The table on page 4 highlights just how detailed the reporting can be, including:

• Full buyer and seller identification
• Beneficial owner information
• Payment details and funding sources

Even with the temporary pause, using the updated forms and educating your clients remains a smart move. If the rule returns quickly, that preparation will make a difference.

These forms and informational videos are available on the NMAR website (a NMAR log-in is required). 

Bottom Line

The FinCEN RRE Rule is paused, not gone.

This is a fluid situation, and changes could happen quickly. We will continue to share updates as they develop.

For now, stay informed, stay ready, and keep your transactions moving forward with awareness.