FinCEN Changes – 2026

by | Nov 21, 2025 | Blog

What’s Changing with FinCEN?

What Real Estate Professionals Need to Know (Coming March 1, 2026)

Big changes are coming to how real estate transactions are reported to the U.S. government. Starting March 1, 2026, a new FinCEN rule will require certain residential real estate transfers to be reported. For title companies, agents, attorneys, and other Real Estate professionals, this means updating systems, policies, and client communication practices before the rule goes into effect.

What Is the FinCEN Residential Real Estate Rule?
FinCEN’s “Anti-Money Laundering Regulations for Residential Real Estate Transfers” (often just called the “Residential Real Estate Rule” or RRE Rule) is designed to increase transparency around all-cash residential real estate transactions that involve legal entities (like LLCs, corporations) or trusts. FinCEN.gov+2Kucker Marino Winiarsky & Bittens+2

Here’s a breakdown of the key requirements:

  • Who Must Report: The “reporting person” is typically the closing or settlement professional — title agents, closing attorneys, escrow officers, etc. NAR+1

  • What Must Be Reported: Information must be submitted in a Real Estate Report (RER) form. Details include:

  • When to File: Generally, the reporting person must file the RER within 30 days of closing. Kucker Marino Winiarsky & Bittens+1

  • Record Retention: Agents will need to retain records of the report and supporting documentation (like IDs, entity docs, source of funds) for several years (common practice is five years, per similar compliance regimes). Kucker Marino Winiarsky & Bittens

  • Cost: Filing directly through FinCEN’s BSA E-Filing system is free. FinCEN.gov However, third-party vendors may charge a fee — if you use one, carefully review their terms. FinCEN.gov

Why Did the Start Date Change?

  • The original effective date had been set for December 1, 2025, but FinCEN has postponed mandatory compliance until March 1, 2026, via an Exemptive Relief Order. FinCEN.gov+2NAR+2

  • This delay gives the industry more time to prepare — set up internal procedures, train staff, and integrate the reporting process into closing workflows. FinCEN Report+1

  • Note: the rule itself remains in place — it’s not being canceled or watered down. FinCEN Report

Who Exactly Is Affected (and Who Is Not)

  • Affected: Transactions involving non-financed transfers (i.e., all-cash or privately financed) of 1–4 family residential properties where the buyer is a legal entity or trust. Kucker Marino Winiarsky & Bittens+1

  • Not Affected: Direct purchases by individuals (i.e., you buy as a person, not via an LLC or trust) with financing (i.e., bank mortgage) are not reportable under this rule. Kucker Marino Winiarsky & Bittens

  • There are other exemptions too — for example, transfers due to death, divorce, bankruptcy, court supervision, or those involving regulated financial institutions. Kucker Marino Winiarsky & Bittens

Implications for Title Companies and Closing Professionals

  1. Process & Systems

    • You’ll need to build or modify closing checklists to identify which deals are reportable.

    • Integrate a workflow for collecting the required “beneficial owner” information during intake (LLC documents, trust instruments, IDs, source-of-funds).

    • Train your closing team: escrow officers, closing attorneys, title agents — everyone needs to understand their role in collecting, verifying, and retaining information.

  2. Client Communication

    • Be proactive: Inform clients (especially buyers using entities or trusts) that you’ll need certain documents at closing. Explain why (FinCEN), what exactly is needed, and how long the process takes.

    • Make it part of pre-closing engagement: include a FinCEN info sheet in your “what to bring to closing” packet.

  3. Compliance Risk

    • Because FinCEN may come back and enforce after March 1, 2026, proper documentation and timely filing are critical.

    • Inadequate reporting could expose your business (or your clients) to regulatory risk, so a robust compliance process helps protect everyone.

  4. Cost Considerations

    • While FinCEN doesn’t charge to file, third-party vendors might — if you’re outsourcing the reporting, evaluate vendors carefully.

    • Factor in the cost of staff time, training, and possible legal consultation (especially if you’re handling complex entity structures).

Strategic Recommendations (Now)

  • Begin internal planning now: don’t wait until early 2026. Start building your playbook.

  • Form a FinCEN task force inside your organization (or among your closing team) to lead policy creation, training, and client-facing materials.

  • Meet with your tech provider (or closing software vendor) to see how to capture the required data in your closing system.

  • Develop a client education campaign: emails, hand-outs, checklist inserts, FAQs.

  • Test the process: do a mock closing in Q1 2026 (or before) so your team can walk through collecting, verifying, and reporting the information.

Conclusion
The FinCEN Residential Real Estate Rule coming March 1, 2026 changes how non-financed residential real estate transactions to entities or trusts are reported. For title companies, closing agents, and attorneys, this isn’t just a compliance headache — it’s an operational shift. But with early planning and smart process design, you can turn this into a competitive advantage: you’ll be seen as a forward-thinking, compliant partner who helps clients navigate complexity with confidence.