New FinCEN Rules Starting March 1, 2026 when buying in a Legal Entity or Trust

What Realtors, Buyers, and Sellers Need to Know About the New FinCEN Rules Starting March 1, 2026 when buying in a Legal Entity or Trust

Beginning March 1, 2026, FinCEN will require a Real Estate Report to be filed for non‑traditionally financed (“all‑cash”) transfers of residential property when the buyer is a legal entity or a trust. This is a nationwide requirement with no minimum purchase price. FinCEN’s purpose is to increase transparency and deter the use of real estate to hide unlawful funds.

Which Transactions Are Affected?

A transaction is generally reportable if all three of these are true:

• The property is residential real estate (1–4 family homes, condos, townhomes, co‑ops, and certain land intended for such use).

• The buyer is an entity or trust (not an individual person).

• The transaction is non‑traditionally financed, meaning there is no traditional institutional mortgage from a lender that has federal anti‑money‑laundering requirements. This will include financing by hard money lenders and seller financing.

If all three apply, a federal report filing is usually required unless a specific exemption exists (for example, certain transfers due to death, divorce, or involving government entities).

Who Must File the Report?

FinCEN created a “reporting cascade”—a priority order that determines who must file if no party is pre‑designated.  In most transactions, if a title company is involved, it will be the reporter because it will serve as the settlement or closing agent.

What Information Must Be Reported?

FinCEN requires specific details about:

• The reporting filer (person or entity submitting the report)
• The buyer entity LLC, S-Corp, C-Corp, Land Trust, LLD or trust
• The beneficial owners (essentially anyone with 25% or more ownership interest or substantial control, senior officers, and persons with signatory authority)
• Identifying information for the beneficial owners to include:

• SSN or ITIN
• Identification, such as a Driver’s License or a Passport
• Address and phone number
• Occupation

• The seller (no BOI analysis for the seller, but still requires identifying information)
• The property and closing date
• The purchase amount and payment method
• Any “hard money” or non‑institutional financing is involved

Reports are not public. They are stored within the government’s Bank Secrecy Act system and accessed only by authorized officials.

What This Means for Realtors

Here’s what you can expect:

• More documentation from buyers: if your buyer is purchasing through an LLC, partnership, corporation, or trust, they will need to provide ownership and control information.
• Slightly longer prep time before closing collecting federal reporting details may add steps to your transaction timeline.
• Increased need for early communication: if your buyer/ seller is using an entity or trust, please flag it as early as possible so our team can help keep the closing on track.

What This Means for Buyers and Sellers

Buyers using an entity or trust: you will be required to disclose information regarding the true beneficial owners of the entity or trust purchasing the home.

Sellers: Your information will also be included in the report, but your required information is less extensive.

All parties: It is important to know that:

• This information is not a public report.
• Independence Title is only transmitting information required by federal law.

Helpful Links for Realtors, Buyers, and Sellers Can be found in by blog post:

• FinCEN Residential Real Estate Rule (Official Site) – https://www.fincen.gov/rre
• FAQs – https://www.fincen.gov/rre-faqs
• Quick Reference Guides – https://www.fincen.gov/rre-quick-reference-guides
• File the Beneficial Ownership Information Report (BOIR) - https://bsaefiling.fincen.gov/
• Reference Materials – https://www.fincen.gov/rre-reference-materials