Starting March 1, 2026, a new federal rule from the Financial Crimes Enforcement Network (FinCEN) will require certain residential real estate transactions to be reported—specifically those involving legal entities or trusts purchasing property with cash or non-traditional financing.
This rule is part of a nationwide effort to curb money laundering and increase transparency in property ownership. Previously, FinCEN used Geographic Targeting Orders (GTOs) in select cities to monitor high-risk transactions. Now, the new Residential Real Estate Rule applies across the country, with no minimum purchase price.
What Consumers Should Know:
• Who's Affected? Buyers using LLCs, corporations, partnerships, or trusts to purchase residential property with cash, seller financing, or private lending.
• What's Required? Settlement agents (usually title companies or closing attorneys) must file a Real Estate Report with FinCEN. This includes identifying the "beneficial owners"—those who ultimately control or benefit from the entity or trust.
• What Properties Qualify? Single-family homes, condos, townhomes, co-ops, and residential land. Mixed-use buildings with residential components may also qualify.
Importantly, individual buyers using traditional bank loans are not affected. The rule targets anonymity in cash-based purchases made through shell companies or trusts.
Real estate has long been a loophole in anti-money laundering efforts. By requiring beneficial ownership disclosure, FinCEN aims to prevent illicit funds from being hidden in property assets while preserving legitimate privacy protections.
Silver City REALTORS® are working to ensure buyers, sellers, and agents understand the new requirements. If you're planning to purchase property through an entity or trust, expect additional documentation and verification at closing.
For more information, visit www.fincen.gov/rre or contact your local title company.
