Unmasking Real Estate Transactions

An Overview of FinCEN's New Anti-Money Laundering Rule for Residential Real Estate

March 1, 2026

Effective Date

$0

Minimum Price Threshold

800K+

Est. Annual Reports

What Triggers a Report? The 4-Part Test

A real estate transaction must be reported to FinCEN only if it meets all four of the following criteria.

  • 🏠

    Residential Property

    Includes 1-4 family homes, condos, co-ops, and vacant land.

  • 💸

    Non-Financed Transaction

    All-cash deals or those with private financing (no bank involved).

  • 💼

    Transferee is an Entity or Trust

    The buyer is an LLC, corporation, partnership, or trust.

  • 📜

    No Exemption Applies

    Transfer is not due to death, divorce, or bankruptcy.

Who is Responsible for Reporting?

The rule establishes a "reporting cascade" to identify the single party responsible for filing.

1. Closing or Settlement Agent

2. Preparer of Settlement Statement

3. Filer of the Deed

4. Title Insurance Underwriter

Operational Impact

Estimated Compliance Costs

FinCEN projects significant financial impact due to training and new procedures.

Key Challenges

  • 📋 Data Acquisition & Verification
  • 🔒 Secure Handling of Sensitive Info
  • Tight Reporting Deadlines
  • Severe Penalties for Non-Compliance

✨ AI Compliance Assistant

Utilize our AI assistant to clarify compliance jargon or check reportability.

Jargon Explainer ✨

Reportability Checker ✨

Legal and Legislative Headwinds

Judicial Challenges

Lawsuits have been filed arguing FinCEN exceeded its authority under the Bank Secrecy Act.

Congressional Challenges

Joint resolutions have been introduced in Congress to disapprove of the rule.