FinCEN Real Estate Report Case Tracker
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How to maintain compliance for free during the FinCEN pause
- NEW IMPORTANT UPDATE -
FinCEN Files Arguments in Appeal
NEW UPDATE 8/17/2026
Case: Fifth Circuit Appeal of Flowers Ruling
DOJ Files Opening Brief Defending FinCEN Residential Real Estate Rule in Fifth Circuit
On August 17, 2026, the Justice Department filed its opening appellate brief asking the Fifth Circuit to reverse the East Texas district court decision that vacated FinCEN’s residential real estate reporting rule nationwide.
DOJ argues that the Rule fits squarely within FinCEN’s § 5318(g)(1) authority to require reporting of any suspicious transaction, because all cash transfers of homes to legal entities or trusts skip lender AML oversight and hide true ownership, making them unusual and proven favorites of cartels, traffickers, and corrupt officials.
DOJ argues that the district court misapplied its own definition of suspicious, since the court agreed that suspicion needs only slight evidence and does not mean unlawful, so the fact that some covered deals have legitimate purposes cannot make the category non suspicious.
DOJ argues that the court wrongly substituted its own judgment for the agency’s by brushing aside FinCEN’s evidence, including that 42 percent of transactions reported under the prior geographic orders involved parties already flagged in other suspicious activity reports, based on pure speculation that institutions overreport.
DOJ argues that § 5318(a)(2) independently authorizes the Rule because Congress expressly listed the collection and reporting of certain information as a permitted procedure to guard against money laundering, and the district court’s reading erases the language Congress added in 1992 and 2021.
Finally, DOJ argues that even if the merits ruling stood, vacating the Rule nationwide was error, because relief should be limited to Flowers alone, especially since a Florida court upheld the same Rule in the Fidelity case now on appeal in the Eleventh Circuit.
NEW UPDATE 5/11/2026
Case: Fifth Circuit Appeal of Flowers Ruling
Government Appeals Flowers Vacatur to Fifth Circuit. Request to Reinstate Rule Expected to Follow.
The government filed its notice of appeal on May 11, 2026, challenging Judge Kernodle’s March 19 order that vacated the FinCEN residential real estate reporting rule. The case now moves to the United States Court of Appeals for the Fifth Circuit.
Both FinCEN real estate reporting cases are now on appeal. Fidelity National Financial filed its notice of appeal in the Eleventh Circuit on April 17 after the Middle District of Florida upheld the rule on all four challenges. The two appeals create the conditions for a circuit split, where two federal appellate courts reach opposite conclusions on the same rule, which is the most common path to Supreme Court review. This is the same pattern that played out with the Corporate Transparency Act, where competing district court rulings led to Fifth Circuit and Supreme Court involvement within weeks.
The next filing to watch for is a motion to stay the vacatur pending appeal, which is how the government would ask the Fifth Circuit to reinstate the rule while the appeal proceeds. In the CTA case, the Fifth Circuit’s motions panel acted on the stay request within days of receiving it. If the government moves on a similar timeline here, a decision on whether the rule resumes could come before the end of the summer.
Our guidance remains the same: continue starting reports and reaching Clear to Close as usual. Hold off on confirming closings until the rule resumes. There is no cost to keeping your compliance processes in place as we do not bill or consume credits until we file. Settlement agents who have information collected and ready when the rule resumes will avoid closing delays.
Update 3/29/2026
Case: Texas Eastern District
FinCEN expected to file appeal within the first couple weeks. Watch for a motion to stay shortly after.
It has been ten days since Judge Kernodle vacated the FinCEN residential real estate reporting rule in Flowers Title Companies v. Bessent. As of today, no notice of appeal has appeared on the docket, but based on the CTA precedent we expect one shortly.
When CTA reporting was paused by this same court in December 2024, the government filed its notice of appeal and an emergency motion to stay with the Fifth Circuit within this same window. The government has up to sixty days from the March 19 order to file, putting the outer deadline around May 18, 2026. Based on precedent, we do not expect them to wait that long.
The notice of appeal itself is a short procedural filing that preserves the government’s right to appeal. It does not contain substantive argument. The faster-moving piece to watch for is a motion to stay the vacatur pending appeal, which is where the government would argue the rule should go back into effect while the appeal plays out. In the CTA case, the Fifth Circuit ruled on the stay motion within days of receiving it.
FinCEN’s website continues to display the same language it posted shortly after the ruling, confirming that reporting is not required while the order remains in force. The filing system remains open and voluntary filings are still being accepted. This mirrors the CTA posture where the system stayed live throughout the enforcement pause.
Our guidance remains the same: Continue starting reports and reaching Clear to Close as usual. You may hold off on triggering filings until the rule resumes, however, about 30% of agents are continuing to file. If you choose not to file and only collect, there is no cost to keeping your compliance processes in place as we do not bill or consume credits until we file. Not having information collected when the rule resumes will make compliance difficult and closings will likely be delayed.
We are monitoring the docket daily and will update as soon as a filing appears.
Update 3/21/2026
Case: Texas Eastern District - FinCEN Action
FinCEN keeps filing system open and posts message mirroring their pre-appeal alert from BOI. What does this mean?
FinCEN has updated its Residential Real Estate Rule page in response to the Flowers Title court ruling. The notice confirms that reporting persons are not currently required to file real estate reports and are not subject to liability while the order remains in force.
When CTA reporting was paused by the same district court, the government filed its appeal within ten days, the Fifth Circuit motions panel lifted the injunction by day twenty, and the Supreme Court stayed the injunction by day fifty-one, resuming filing requirements. We expect the government to move on a similar timeline here. FinCEN posted nearly identical language on its BOI page during that period, and that notice stayed up for weeks before the rule resumed.
Notably, FinCEN has not taken the filing system down. The BSA E-Filing system is still accepting reports and the Prepare and File sections remain active. This is the same approach FinCEN took with the CTA, where voluntary filings continued throughout the enforcement pause. Treasury’s language on the page continues to frame the rule as a national security priority designed to combat money laundering, signaling intent to appeal and restore the rule.
Our guidance remains the same. Continue starting reports and reaching Clear to Close as usual. Hold off on confirming closings until the rule resumes. The system is fully operational and there is no cost to keeping your compliance processes in place. Not having this information ready when the rule resumes will delay closings. Remember, we do not bill or consume report credits until we file, so starting report orders and keeping them at Clear to Close is cost-free.
We are monitoring this closely and will continue to update.
Update 3/19/2026
Case: Texas Eastern District
Eastern District of Texas Pauses FinCEN Real Estate Reporting Rule. FinCEN Appeal Expected Very Soon.
What happened today?
On March 19, 2026, Judge Jeremy Kernodle in the Eastern District of Texas paused FinCEN’s residential real estate reporting rule nationwide in Flowers Title Companies v. Bessent. The rule, with reporting obligations beginning March 1, 2026, is currently unenforceable while an appeal plays out. This is the same district court that paused Corporate Transparency Act BOI reporting in a similar challenge, which resumed within three weeks after appeals through the Fifth Circuit and Supreme Court.
Why East Texas?
The Eastern District of Texas has become a common venue for challenges to federal regulations, in part because its small bench makes judge assignment more predictable. This pattern, known as forum shopping, has drawn attention from Chief Justice Roberts and the Judicial Conference, which adopted a policy in 2024 aimed at addressing it. The Flowers case, the Smith BOI case, and the Texas Top Cop Shop CTA case were all filed in this district. In each case, the rules were paused and later resumed after appeals.
The circuit split: Texas vs. Florida
A federal court in Florida (Fidelity National Financial v. Bessent) upheld the same rule just weeks earlier, finding that FinCEN acted within its statutory authority and rejecting all four of Fidelity’s challenges. The two courts disagreed on what “suspicious” means at scale. Florida accepted FinCEN’s argument that non-financed transfers to entities and trusts are inherently suspicious as a category, based on agency experience and the 42% SAR overlap from the GTO program. Texas found that reasoning insufficient and also rejected FinCEN’s backup argument under Section 5318(a)(2), holding it authorizes procedures, not standalone reporting obligations, an issue the Florida court treated as additional support rather than the primary basis.
Whether a single district judge should be able to pause a federal regulation for the entire country is one of the most debated questions in administrative law. The Fifth Circuit has endorsed universal vacatur as the default APA remedy, while critics argue this gives one judge outsized influence over national policy. The Supreme Court has signaled interest in the question, with Justice Gorsuch raising it directly in the CTA litigation.
What comes next?
We expect the government to appeal to the Fifth Circuit and seek an expedited hearing. The procedural path will likely mirror what happened with the Corporate Transparency Act after the Texas Top Cop Shop ruling in December 2024. In that case, the district court issued a nationwide injunction on December 3, the Fifth Circuit motions panel lifted it weeks later on December 23, the merits panel reinstated it on December 26, and the Supreme Court stepped in on January 23, 2025, resuming the filing requirements pending the Fifth Circuit’s resolution of the appeal. The real estate rule could follow a similar cycle, with the government seeking a stay of the pause from the Fifth Circuit or, if needed, going directly to the Supreme Court, which has already shown a willingness to act quickly on nationwide challenges to FinCEN reporting authority.
Why does this rule exist?
Regardless of how the legal process plays out, the policy purpose behind this rule remains. In addition to tracking money laundering activity, the RRE reporting rule closes a gap that allows foreign actors from adversarial nations, including Russia, China, Iran, and Venezuela, to purchase residential property near military installations, intelligence facilities, and critical infrastructure through anonymous LLCs and trusts with no visibility to law enforcement. Without the rule, a foreign oligarch, a cartel-linked shell company, or a sanctioned government operative can wire cash into a US entity, close on a home near a naval base or defense contractor campus, and no federal agency ever sees the transaction or the true ownership behind it. The RRE rule solves that problem by requiring reporting of who is actually behind non-financed purchases by entities and trusts, giving law enforcement the same line of sight into these transactions that already exists for financed purchases where a bank’s AML program applies.
What settlement agents should do right now
The rule is paused and there is no current ability for FinCEN to enforce Real Estate Reporting during this period. The government will likely seek a stay of the pause pending appeal, which could resume the rule on short notice. That turnaround was three weeks when the Fifth Circuit lifted the Texas Top Cop Shop injunction on the CTA. We recommend continuing current processes, starting reports and reaching Clear to Close as usual, and simply holding off on confirming closings until the rule resumes. That way your team is prepared and no transactions are delayed when it comes back. As a reminder, reports are free until they are marked closed, so there is no cost to keeping your established compliance processes in place.
Update 12/9/2025
Case: Middle District of Florida
Magistrate judge urges full rejection of Fidelity’s challenge and recommends upholding FinCEN’s nationwide Real Estate Report rule in its entirety.
The magistrate judge issued a formal recommendation to the district judge that fully rejects Fidelity’s lawsuit and leaves FinCEN’s Real Estate Report rule in place without changes. The judge concluded that Congress gave FinCEN broad authority under the Bank Secrecy Act and the Anti Money Laundering Act, that the agency’s cost benefit analysis and responses to comments were adequate, and that the rule does not violate the Fourth or First Amendments. In practical terms this is a strong legal validation of the rule’s core design, including its nationwide scope, zero dollar threshold, and coverage of entity and trust buyers.
The parties now have a short window to file objections, after which the district judge will decide whether to adopt the recommendation. If the district judge adopts it, Fidelity’s only remaining remedy will be an appeal in the Eleventh Circuit while the rule stands on much firmer footing.
In most cases a detailed report and recommendation serves as a roadmap that the district judge follows unless a party offers a clear and specific reason to depart from it. The key turning point is whether objections are filed within the fourteen day period, because objections require a fresh look by the district judge, while silence usually allows the recommendation to become the final decision with little further scrutiny.
Update 9/30/2025
Case: Middle District of Florida
All Parties Agree to Cancel 9/30 Hearing After FinCEN Extends Rule Timeline
The court filing on September 30 shows both Fidelity and the government jointly requested cancellation of today’s hearing on the preliminary injunction. The motion is now on hold.
FinCEN notified the court it will exempt reporting persons from all requirements of the Residential Real Estate Transfers Rule until March 1, 2026. With this extension, the immediate dispute is considered moot.
The plaintiffs preserve the right to revisit their request if the district court cannot resolve cross-motions for summary judgment before the new March 2026 date. Both sides confirmed the hearing was no longer necessary, and the court is asked to hold the motion in abeyance.
See the post directly below this for more information on FinCEN’s update extending the timeline and publishing a draft of the filing form. It appears FinCEN filings remain on track with and adjusted regulation launch date of 3/1/2026.
Update 9/30/2025
Case: Middle District of Florida
IMPORTANT UPDATE: FinCEN publishes RER form + extends deadline 90 days. We'll update on the case itself after the hearing today.
To proactively respond to the industry’s concerns around the preparation time for the Real Estate Report and lack of a published form, FinCEN has provided two critical updates –
1. They have extended the launch date for the Real Estate Report by 90 days to March 1st, 2026.
2. They have published a draft of the real estate report form below. Do not store or use this version, as it is only a draft.
What this means for you:
Title and escrow companies now have additional time to prepare. By publishing the reporting form, FinCEN has confirmed its direction towards moving the rule forward with a new launch date.
Our guidance:
The extra time reduces immediate pressure, but it is important to use this period to finalize a reliable plan for filings. Whether through automation or managed support, being ready ahead of the new launch date is critical. FinCEN’s release of the form signals the regulation will proceed, and further extensions are unlikely.
We’ll publish an update on the Fidelity case after the 2PM hearing today once the docket updates with the results of the hearing.
With this extension in place and the form draft out ahead of the hearing, it’s more likely the courts will not intervene in the regulation’s launch.
Update 9/17/2025
Case: Middle District of Florida
FinCEN/Treasury responds by the deadline addressing arguments made. Full documents below. Upcoming hearing on 9/30 will decide preliminary injunction outcome.
FinCEN states the court should not pause the rule because the plaintiffs did not show they are likely to win. It argues FinCEN has authority under the Bank Secrecy Act to treat these real estate transfers as suspicious and to require a simple report from the main party at closing. The agency, they say, explained why trusts are covered, why there is no dollar limit, and it analyzed costs and benefits. The First and Fourth Amendment claims fail, in their view, because this is routine business reporting in a regulated area, not a limit on speech or privacy. The plaintiffs also waited nearly a year to seek emergency relief and offered weak proof of harm, while admitting costs can be passed on to customers. The government adds that the public interest in fighting money laundering outweighs any burden, and if any pause is granted it should be limited to the parties and require a bond.
Update 9/4/2025
Case: Middle District of Florida
Fidelity challenges FinCEN Real Estate Report rule. Court sets deadline. State responds by 9/17, hearing on 9/30 will decide preliminary injunction outcome.
Fidelity National Financial is suing Florida’s Secretary of Commerce, Scott Bessent, and others, asking the court to block or pause a new rule or law. The judge has not yet decided whether to grant that request. Instead, this order sets the schedule for how the case will proceed. The state must file its written response by September 17, 2025, and the court will hold a hearing on September 30, 2025, in Jacksonville. At that hearing, lawyers for both sides will present their arguments, and the judge will decide whether to issue a preliminary injunction. That decision will determine whether the law is temporarily stopped or allowed to move forward while the broader case continues. In short, nothing substantive has been decided yet, and this order only establishes the next steps leading up to the September 30 hearing.
Update 5/20/2025
Case: Middle District of Florida
Fidelity National Financial sues U.S. Treasury and FinCEN to block new real estate reporting rule, citing excessive costs and constitutional violations.
Fidelity National Financial and Fidelity National Title Insurance Company have filed a lawsuit against the U.S. Treasury, FinCEN, and senior officials, seeking to block the new Anti-Money Laundering Regulations for Residential Real Estate Transfers. These rules, set to take effect on December 1, 2025, would require extensive reporting on nearly all non-financed residential property transfers to legal entities or trusts. Fidelity argues the rules exceed FinCEN’s legal authority, impose excessive compliance costs, and violate constitutional protections under the First and Fourth Amendments. The company claims the regulations will generate an estimated 800,000 to 850,000 reports annually, a 4,000% increase compared to current levels, with costs in the hundreds of millions of dollars. The lawsuit asks the court to declare the rule unlawful, vacate it, and permanently block enforcement while also awarding costs and attorneys’ fees.
