Residential Real Estate Reporting

Are you transferring title to a bunch of real estate? You may be subject to the new Real Estate Reporting requirements of the Financial Crimes Enforcement Network (FinCEN).

What is the Reporting Requirement?

The new Real Estate Report is a form that some real estate professionals will need to file with FinCEN for certain transfers of real estate. The purpose of the report is to identify real estate transactions and transfers that are at high-risk for illicit finance. The reports increase transparency around real estate transfers and are supposed to deter money laundering.

Who has to Report?

Only specific people are required to file these real estate reports. If there is no “reporting person” the transfer may not need to be reported. So, who is a reporting person? The reporting person is the first person who fills a role in the order of this list:

1. The person listed as the closing agent or settlement agent on the closing or settlement statement
2. The person who prepares the closing or settlement statement
3. The person that files with the recordation office the deed or other instrument that transfers ownership of the residential property
4. The person who underwrites the title insurance policy for the transferee with respect to the residential property
5. The person who disburses in any form, the greatest amount of funds in connection with the residential real property transfer
6. The person that provides an evaluation of title, or, finally
7. The person who prepares the deed, or if no deed is involved, any other legal instrument that transfers ownership of the residential real property.

The responsible person to file the report is the first person listed on this list. So, for example, the person who prepares the closing or settlement statement is only the person responsible if there is no person listed as the closing agent or settlement agent. Reporting persons may also have a written designation agreement, designating an alternate reporting person.

Fortunately for our clients, most of our clients don’t fit any of these roles. But, many of us are professionals who work on real estate transactions, at least tangentially. Many professionals may prepare or record deeds, or be otherwise involved in the transfer of residential real property. Those of us who fall into this category will need to slow down and analyze whether we are a reporting person on this list in any given transfer.

What transfers need to be reported?

The report needs to be filed on any non-financed transfer to a transferee entity or transferee trust of an ownership interest in residential real property. The rule and guidance documents include definitions for “non-financed,” “transfer,” and “residential.” Something to note is that residential real estate is not just single family homes. It can include houses, townhouses, condos, and even shares of stock in a co-op. There are a few notable exceptions as to what needs to be reported. Some of the transfers that do not need to be reported include:

• A transfer that is a grant, transfer or revocation of an easement
• A transfer resulting from the death of an individual, whether pursuant to the terms of a will, the terms of a trust, the operation of law, or by contractual provision
• A transfer incident to divorce or dissolution of a marriage or civil union
• A transfer made by a bankruptcy estate
• A transfer supervised by a court in the U.S.
• A transfer for no consideration made by an individual, either alone or with their spouse, to a trust of which that individual, that individual’s spouse, or both, are the settlors or grantors
• A transfer to a qualified intermediary for the purposes of a like-kind exchange for purposes of Section 1031 of the I.R.C.
• A transfer for which their is no reporting person.

There may be other transfers that are not reportable. If you think a transfer might be reportable or that you might be the reporting person, read the rule, or consult with a real estate attorney.

When does the rule take effect?

Reporting will begin in March 1, 2026. Originally, the rule took effect earlier, but FINCEN postponed as of September 30, 2025.

How do I report?

Hold your horses. Reporting is not available yet (or at least it was not when this newsletter was written on 10/12/2025). Once reporting becomes available, it appears that you will be able to report using FinCEN’s BSA E-File system. You can see a sample of the form that you need to fill out here.

Are you getting dejavu?

If this sounds familiar, it’s because it is. Last year FinCEN came out with a Beneficial Ownership Report under the Corporate Transparency Act that required certain people to report information regarding the ownership of LLCs. That rule received push back and injunctions before it ever got off the ground. Most recently, FinCEN issued an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information. FinCEN published the interim final rule on March 26, 2025. Find more information about Beneficial Ownership Reporting here.