How New FinCEN Reporting Requirements Will Affect Certain Real Estate Transfers Beginning March 2026

Significant regulatory changes are coming to the real estate industry. Starting March 1, 2026, any LLC, corporation, trust, or similar entity that purchases residential property may be required to disclose detailed ownership information to the federal government.

A newly issued rule from the Financial Crimes Enforcement Network (FinCEN) is designed to increase transparency in real estate transactions by identifying the beneficial owners behind entity purchasers.

What Transactions Are Covered?

The reporting requirement applies to transfers of structures or land intended to be occupied by 1 to 4 families, including condominium units. The reporting requirement applies to transfers to private entities, such as:

• Limited liability companies (LLCs)
• Corporations
• Partnerships
• Trusts

The rule does not apply when:

• The transfer is financed by an institutional lender with an obligation to maintain an anti-money laundering program and report suspicious behavior
• The transferee is an individual
• The transferee is a governmental authority

The rule also does not apply to transfers to a bankruptcy estate or a “transfer supervised by a court in the United States.” This language appears to exclude judicial sales, though practitioners should continue monitoring for clarifying guidance.

Who Files the Report?

The obligation to report falls initially on the settlement agent. If there is no settlement agent, the obligation falls on others involved in the transaction, in the following order: the person that prepares the settlement statement, the person that files the deed, the title insurance underwriter, the person that disburses the greatest amount of funds, the person that evaluates title, or the person that prepares the deed. These people may agree in advance which one of them will handle the FinCEN filing.

When is the Report Filed?

The deadline to file the report is within 30 days of closing or by the end of the month following closing, whichever is later.
What Information Must Be Provided?
For any sale where the transferee is a trust or private entity, the reporting person will need to collect detailed information about the transaction, including information on the:

• Reporting person
• Transferor
• Transferee
• Beneficial owners of the transferee
• Individual who signs the documents on behalf of the transferee
• Property
• Payments

Information required for individuals includes:

• Full legal name
• Date of birth
• Residential address
• Citizenship
• SSN or EIN

What FinCEN’s Real Estate Reporting Requirements Mean for You

As the March 1 effective date approaches, real estate professionals should prepare now to integrate these requirements into their transaction workflows.

For many transferees, the reporting requirement will be straightforward. You will be asked for basic information about your purchasing entity, and your settlement agent will handle the filing as part of the closing process.

Some transferees, particularly those with multiple ownership layers or joint venture arrangements, might need additional time before closing to confirm who qualifies as a beneficial owner and to gather the required individual information.

Lastly, if you routinely transfer real estate properties between holding companies or restructure ownership, be aware that each covered transfer might trigger a new FinCEN filing and factor that requirement into your transaction planning.

If you have any questions about this post or who is a beneficial owner, please contact a member of our Commercial Real Estate Team.

Subscribe now to receive the latest insights from our attorneys.