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Helpful Information:

 

What's Changing?

Starting March 1, 2026, certain residential real estate transactions must be reported to the Financial Crimes Enforcement Network (FinCEN).  This rule is designed to combat money laundering which aids terrorists, the drug trade, and human-traffickers.

What Does This Mean for My Transaction?

If the Buyer in your transaction is a legal entity (e.g., corporation, LLC, partnership) or a trust, information about both the Seller, Buyer, and Source of Funds must be transmitted to the closing agents before closing.  Most settlement agents in the industry will not close your transaction without this information being received prior to closing.

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REALTORS

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BUYERS & SELLERS

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SETTLEMENT AGENTS

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What Transactions Are Reportable?

A transaction must be reported if:

  • The property is residential real estate (including condos, townhomes, co-ops and vacant land intended for 1-4 family structures)
  • The transfer is non-financed (e.g., all-cash) or where the lender does not have an anti-money laundering (AML) program
  • The buyer is a legal entity or trust


What Type of Information will be Collected from the Buyer?

  • General Information about the legal entity or trust
  • Beneficial Ownership Information about the legal entity or trust
  • Personal Information about the individuals who are identified as Beneficial Owners
  • Source of Funds Information, including Bank Account Numbers and Account Ownership

What Type of Information will be Collected from the Seller?

  • General Information about the individual, legal entity, or trust

What Should a Buyer Do to Prepare for a Closing That is Potentially Reportable Under this Rule?

  • Determine as soon as possible, prior to closing, whether the property will be held by the Buyer’s legal entity or trust
  • If the Buyer is using a legal entity or trust, contact the settlement agent for the transaction to begin their unique processes for determining reportability and how information will be collected prior to closing
  • If the Buyer does not know answers to the information that must be collected, contact an attorney, accountant, or other advisor who can assist with completion of the collection form

Why It Matters?

Failure to comply can result in civil and criminal penalties, including imprisonment, for reporting persons who do not comply.  Settlement agents must be proactive to avoid delays in closing and will require this information in most instances before closing.

Let’s work together to ensure smooth closings and full compliance.

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*The statements made on this web page and any page that follows within the FNF Family of Companies website are not intended and shall not be construed to expressly or impliedly issue or deliver any form of written guaranty, affirmation, indemnification, or certification of any fact, insurance coverage or conclusion of law. Title agents are not agents of the FNF Family of Companies regarding their escrow accounts and settlement procedures. The information provided on this website does not, and is not intended to, constitute legal advice.