The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has rolled out new nationwide reporting rules for real estate transactions — and they could affect how some closings are handled.
What’s Changing
FinCEN now requires title companies and settlement agents to report details on all-cash real estate purchases, especially when the buyer is an entity (e.g., uses an LLC, corporation, or trust for the purchase). These reports identify the actual people behind entities purchasing property — a move aimed at preventing money laundering through U.S. real estate.
Who’s Affected
– Buyers using an LLC, corporation, or trust to buy property (unless exempt per the applicable regulations
– Cash buyers (no mortgage financing)
– Title/settlement professionals who must collect and report the information
If the buyer is an entity, it should expect to provide names, addresses, and ID for anyone who owns or controls 25% or more of the entity.
What Buyers Should Do
✅ Plan ahead — gather ownership documents early
✅ Be transparent — disclose all beneficial owners and provide any additional information requested by the title company to complete the required reporting
✅ Choose professionals familiar with FinCEN compliance
What Sellers Should Know
If the transaction falls within the reporting requirements, the Seller (whether an individual or an entity) will also have to provide certain identification information for reporting purposes
Why It Matters
These new rules promote transparency and protect the integrity of the real estate market. For most buyers using traditional financing, nothing changes — but for entity or cash purchases, expect a few extra compliance steps at closing.
