Real Estate Report FAQ
Table of Contents
Learn About FinCEN's Real Estate Report
The Real Estate Report, a new regulatory requirement issued by the Financial Crimes Enforcement Network (FinCEN), is designed to increase transparency in residential property transactions and help prevent the misuse of real estate for money laundering. Below you will find answers to the most commonly asked questions about this new filing requirement, including who must file, when it applies, and what situations are considered exceptions.
We also address lesser-known scenarios and edge cases that may affect compliance. For full regulatory language and ongoing updates, you can visit FinCEN’s official guidance here. If your question is not addressed below, please contact us and a member of our expert team will schedule a time to walk you through the details.
General Questions
What is the FinCEN Real Estate Report?
The FinCEN Real Estate Report is a new federal filing requirement designed to combat money laundering through certain residential real estate transactions. Starting March 1, 2026, specific real estate professionals involved in closings and settlements will need to submit reports to the Financial Crimes Enforcement Network, commonly known as FinCEN. These reports focus on non-financed property transfers involving legal entities or trusts, which are considered high risk for financial crimes due to their anonymity.
The information collected in these filings is not made public. Instead, it is used by law enforcement and national security agencies to detect illicit financial activity in the residential real estate market.
When does the FinCEN Real Estate Reporting Rule take effect?
The rule will take effect on December 1, 2025. After that date, reportable transfers that close will be subject to the new Real Estate Report filing requirements. This includes closings that happen on or after that date, not before.
How much time does it require to complete a real estate report?
FinCEN has stated that these reports may consume between 2.5 to 6 hours of staff time in their federal register documents. This can be reduced to under 15 minutes with our software which automates the process.
Why is FinCEN requiring these reports for real estate transfers?
FinCEN is increasing transparency in residential property transactions to stop criminals from using real estate to hide illegally obtained money. These types of transactions are often structured to avoid oversight by banks, which are required to report suspicious activity. By targeting non-financed purchases made by companies or trusts, the rule helps prevent money laundering and other forms of financial misconduct in the U.S. housing market. This initiative is backed by data from the GTO program that indicated that over 5% of those transactions were related to individuals subject to active FBI investigations.
What types of real estate transactions does the FinCEN rule apply to?
The FinCEN rule applies to residential real estate transfers that meet all three of the following conditions:
- The property is located in the United States and is considered residential real estate. This includes properties with 1 to 4 residential units and residentially zoned land.
- The transfer is non-financed, meaning it does not involve a loan from a bank or lender subject to anti-money laundering laws. You may also see this referred to as a cash transaction.
- The new owner is a legal entity, such as a corporation or limited liability company, or a trust.
If all three conditions are met and no exemption applies, the transaction must be reported to FinCEN.
Who will be responsible for filing the FinCEN Real Estate Report?
Only one party to the transaction will be designated as the “reporting person.” This will typically be a title company, escrow agent, settlement agent, or attorney involved in the closing process. FinCEN has outlined a system to determine which professional is responsible, known as the reporting cascade, but parties can also agree in writing who will take on the reporting role.
The FinCEN Real Estate Report (RER), explained in the Federal Register in April 2024, uses a reporting cascade to decide who must file the report.
The cascade lists people involved in closing a sale in a specific order. The first person on the list involved in the closing is responsible for filing the report.
The reporting cascade is:
The settlement agent who prepares closing documents
The person responsible for recording the property deed
The title insurance company representative issuing title insurance
The escrow agent
The buyer’s attorney
The seller’s attorney
The real estate agent or broker
If multiple people from this list are involved, only the person highest on the list files the RER.
People on this list can also agree in writing to shift the reporting responsibility to someone else involved in the closing. This agreement clearly states who will file the report instead.
The FincenRealEstateReport.com online portal will support access for any of these entities, or multiple as offices, to manage reporting requirements.
Will this information be available to the public?
No. The data collected through Real Estate Reports will be stored securely by FinCEN and used only by authorized government entities. It will not be searchable or accessible by the public, real estate agents, or private investigators.
Are these reporting requirements part of the FinCEN Geographic Targeting Orders?
The new rule builds and expands on the foundation established by FinCEN’s Geographic Targeting Orders (GTOs), which required title insurance companies to report certain all-cash real estate deals in select U.S. cities. However, the Real Estate Reporting Rule expands those requirements nationwide and applies to a broader range of professionals, not just title insurers. It also removes any purchase price threshold, making even low-value or gifted properties subject to reporting if they meet the criteria.
How is this different from Beneficial Ownership Information (BOI) Reporting?
While both rules aim to identify who ultimately controls legal entities, they serve different purposes. BOI reporting applies to most corporations and limited liability companies and is filed directly by the business itself. In contrast, the Real Estate Report is triggered by a property transfer and must be filed by a real estate professional involved in the transaction. These two rules are complementary but operate separately.
Reportable Property Transfers
When does a real estate transfer require filing a FinCEN Real Estate Report?
A Real Estate Report must be filed when a residential property is transferred under all of the following conditions:
- The property is classified as residential real estate and is located in the United States.
- The transfer is non-financed, meaning no loan or mortgage is provided by a regulated financial institution subject to anti-money laundering rules. This may also be referred to as a cash transaction.
- The property is being transferred to a legal entity, such as a corporation or limited liability company, or to a trust.
- No applicable exemption applies to the transaction.
If these conditions are met, the transfer is considered “reportable” under the FinCEN Real Estate Reporting Rule, regardless of purchase price.
What exemptions exist for the filing requirements?
The following exemptions exist to an otherwise reportable transfer.
- Granting, transferring, or revoking an easement
- Transfer due to death (will, trust, or law)
- Transfer related to divorce or marriage dissolution
- Transfer to a regulated entity like a bank or public company
- Transfer to a bankruptcy estate
- Court-supervised transfer
- No-cost transfer to a trust created by the individual property owner or their spouse
- Transfer to a Qualified Intermediary (QI) for a 1031 exchange
- Transfer involving no real estate professional (settlement agent, document preparer, deed filer, title insurer, or escrow agent)
What qualifies as residential real estate under the FinCEN rule?
Residential real estate includes:
- Single-family homes
- Townhomes
- Condominiums and co-ops
- Apartment buildings with one to four residential units
- Shares in cooperative housing corporations
- Vacant land intended for future residential use
Note: Properties that include both residential and commercial uses, such as a residence above a storefront, are also covered if they are primarily intended for residential use.
What is considered a transfer of residential real estate?
A transfer includes any change in ownership of a residential property, whether through a traditional sale, gift, or other legal instrument. The transfer must be legally recognized through a deed or other ownership document, such as stock certificates in the case of cooperative housing.
Note: Even if no money changes hands, such as in a gift transfer, the transaction can still be subject to reporting if it meets the other criteria.
What does “non-financed transfer” mean under the Real Estate Reporting Rule?
A non-financed transfer is a real estate transaction where the buyer does not receive a loan from a financial institution that is required to follow federal anti-money laundering laws. For example, if the buyer uses cash or receives financing from a private lender that is not subject to federal AML requirements, the transaction is considered non-financed and may be reportable.
If there is uncertainty about whether the lender is subject to these laws, the reporting person should ask the lender directly or rely on written representations from others, unless there is reason to doubt their reliability.
What types of residential real estate transfers are not reportable?
The FinCEN rule includes specific exemptions for certain low-risk scenarios. A Real Estate Report is not required for:
- Grants or easements
- Transfers due to death, such as through a will or trust
- Transfers related to divorce or dissolution of a civil union
- Transfers to a bankruptcy estate
- Court-supervised transfers
- Transfers made by an individual (or jointly with a spouse) to a trust of which they are the grantor
- Transfers related to a 1031 like-kind exchange
Transfers where no qualifying reporting person is involved
What is a transferee entity in the context of the FinCEN Real Estate Report?
A transferee entity is any business or legal organization receiving ownership of the property, other than an individual or a trust. This includes corporations, partnerships, limited liability companies, and certain estates or associations.
Some entities are exempt from reporting, including banks, publicly traded companies, and other institutions already subject to extensive federal oversight.
What is a transferee trust?
A transferee trust is a legal arrangement where a trustee manages property on behalf of beneficiaries. Most trusts that receive residential property in a non-financed transfer are subject to reporting, unless they fall under one of the specific exemptions outlined in the rule.
Exemptions Include:
- Securities reporting issuer
- Trustee that is a securities reporting issuer
- Statutory trust (such a trust is treated as a transferee entity, not a transferee trust)
- Subsidiary of an exempted trust
Trusts are considered transferee trusts whether the deed is in the name of the trust or the trustee.
Can a single transaction involve more than one transferee entity or trust?
Yes. A reportable transfer may involve multiple legal entities or trusts as transferees. If at least one transferee is subject to reporting under the rule, the transaction must be reported.
What if some transferees are exempt and others are not?
If at least one of the transferees is a reportable entity or trust, the entire transfer must be reported. However, the Real Estate Report only requires identifying information for the transferee(s) that are not exempt.
Does the purchase price of the property affect whether the FinCEN report is required?
No. Unlike earlier Geographic Targeting Orders that applied only to high-value purchases, the new FinCEN Real Estate Reporting Rule applies regardless of the property’s price. Even low-value or gifted properties must be reported if they meet the criteria for a reportable transfer.
Are cash purchases always considered reportable?
Not necessarily. While many cash purchases fall under the rule due to the absence of financing, they must also meet the other conditions, including being transferred to an entity or trust. A cash purchase made by an individual for personal use would not be reportable under the rule.
Reporting Persons
Who is responsible for filing the FinCEN Real Estate Report?
The duty to file the FinCEN Real Estate Report rests with a single party referred to as the “reporting person.” This will typically be a real estate professional involved in the closing or settlement process. Only one reporting person is responsible per transaction, even if multiple professionals are involved.
Our software supports multiple user roles and shared access, so any qualifying professional can fulfill their filing obligation within one platform.
What is the reporting cascade?
The reporting cascade is the method FinCEN uses to identify who must file the Real Estate Report. It is a ranked list of functions commonly performed during a property transfer. The real estate professional performing the highest-ranked available function is responsible for filing unless a written agreement assigns that responsibility to someone else. These functions include preparing or signing the closing documents, recording the deed, underwriting title insurance, disbursing funds, evaluating the title, or preparing the deed.
Our software supports multiple user roles and shared access, so any qualifying professional can fulfill their filing obligation within one platform.
Reporting Cascade:
- The individual or business listed as the closing or settlement agent on the official closing or settlement statement.
- If no such agent is listed, the professional who prepared the closing or settlement statement.
- If neither of the above applies, the party who filed the deed or other legal document that formally transfers ownership of the residential property with the local recordation office.
- If none of the above roles are involved, the underwriter of the owner’s title insurance policy for the transferee. This is typically a title insurance company.
- If none of the above parties are involved, the person or entity that disbursed the largest portion of funds connected to the transaction. This may include disbursements from an escrow account, trust account, or attorney trust account.
- If no one has yet qualified, the party that evaluated the title status for the transaction.
- Lastly, if none of the above apply, the individual or business that prepared the deed or, in the case of a cooperative housing unit, the party that prepared the stock certificate or other instrument evidencing ownership.
What is a designation agreement?
A designation agreement is a written agreement between professionals involved in a transaction that assigns filing responsibility to a specific party. It allows real estate professionals to shift reporting obligations in a clear and documented way, providing flexibility. Each agreement must be specific to a single transaction and kept on record for five years.
Do reporting persons need to implement an AML or CFT compliance program?
No. Real estate professionals responsible for filing a FinCEN Real Estate Report are not required to implement or maintain a full anti-money laundering (AML) or Combating the Financing of Terrorism (CFT) compliance program. They are exempt under current federal regulations.
What happens if multiple professionals perform the same function listed in the cascade?
If more than one person performs the same function, the parties may agree who will file the report. If no agreement is made, either may take on the responsibility, but both remain potentially liable if the report is not filed. Using a written designation agreement is strongly recommended in these cases.
Required Information
What information must be included in a FinCEN Real Estate Report?
The report must include detailed identifying information for:
- The reporting person
- The property being transferred
- The transferor (the seller)
- The transferee entity or trust
- Any individuals signing documents on behalf of the transferee
- All beneficial owners of the transferee entity or trust
- The total amount paid for the property, and how it was paid
We offer guided data entry and document upload fields that walk the reporting party through each section of the report.
How should the reporting person collect this information?
Reporting persons may rely on information provided by others involved in the transaction if they do not have reason to doubt its accuracy. However, for beneficial ownership information, the transferee or their representative must certify the information is correct to the best of their knowledge in writing.
Secure upload links and electronic identity certification features within our platform help individuals submit required ownership and identification data.
Who qualifies as a beneficial owner of a transferee entity?
A beneficial owner of a transferee entity is someone who either:
- Exercises substantial control over the entity
- Owns or controls at least 25 percent of the ownership interests in the entity
This definition is aligned with FinCEN’s Beneficial Ownership Information (BOI) reporting rule.
Who qualifies as a beneficial owner of a transferee trust?
A beneficial owner of a transferee trust includes:
- Trustees
- Individuals with authority to dispose of trust assets
- Beneficiaries entitled to demand or receive substantially all trust assets
- Grantors who can revoke the trust
- Individuals who control a legal entity that holds any of the above positions
How is beneficial ownership information certified?
The transferee or their authorized representative must provide written certification stating that the beneficial ownership information is accurate to the best of their knowledge. This certification can be gathered using a custom form or integrated into existing closing documents.
We provide a built-in certification process for all filings. We also store this for the entire record-keeping period.
What happens if a transferee refuses to provide beneficial ownership information?
If a transferee entity or trust does not provide the required beneficial ownership information and certification, the reporting person may not be able to complete the Real Estate Report. In such cases, the transfer could be delayed, or the reporting person may choose to withdraw from the transaction to avoid liability.
Our platform logs incomplete submissions and flags them for follow-up, helping avoid illegal non compliance
Reporting & Recordkeeping Requirements
What is the deadline to file a FinCEN Real Estate Report?
The Real Estate Report must be filed by the later of:
- The last day of the month following the month in which the transaction closes
- Thirty calendar days after the date of closing
This means most filers will have between 30 and 60 days to file.
What records must the reporting person keep?
The reporting person must retain:
- Any written certification of beneficial ownership received from the transferee or their representative
- Any written designation agreement assigning reporting duties
These records must be maintained for five years. The reporting person does not need to keep a copy of the submitted report itself.
We provide secure cloud based document holding, compliant with SOC 2 standards.
Do other professionals involved in the transfer need to retain records?
Yes. Any party that signs a designation agreement must retain a copy for five years. This requirement applies even if that party is not ultimately the one responsible for filing the report.
Can the Real Estate Report be amended after filing?
Reporting persons should take care to verify all information is complete and accurate before filing. If you choose to work with us, we will put up protections to ensure all information is accurate before filing. FinCEN has indicated that amended filings are possible.
Will FinCEN audit or review Real Estate Reports after they are submitted?
While FinCEN has not outlined a specific audit process, the agency reserves the right to review filings for accuracy and completeness. Real estate professionals should ensure strong documentation practices and retain required records for the full five-year period.
Our features capture and record all activity associated with a report, offering transparency in case of audit.
