Beginning on March 1st, 2026, the Financial Crimes Enforcement Network will require all title companies to report certain sales transactions. Please refer to the video below for detailed information. There is a Written explanation below that.
New Rules Explained
Effective March 1, 2026, a new federal rule from the Financial Crimes Enforcement Network (FinCEN) requires title companies to report specific types of residential real estate transactions. This is part of a permanent nationwide effort to increase transparency and prevent money laundering in the U.S. housing market.
Does this apply to my transaction?
This rule applies primarily to non-financed (all-cash) purchases of residential property. Reporting is required if the buyer is a:
Legal Entity: Such as an LLC, Corporation, or Partnership.
Trust: Most types of legal trusts.
Exemptions: If the purchase involves a loan from a traditional bank or institutional lender, reporting is generally not required, as these institutions already perform their own federal anti-money laundering checks.
What information is required?
For transactions that fall under this rule, we are mandated to collect and report "Beneficial Ownership Information." This includes:
The legal name and address of the entity or trust.
Identifying information (names, dates of birth, and tax IDs) for the individuals who ultimately own or control the entity.
Why is this mandatory?
This is a mandatory federal requirement, not a policy of our title company. We understand this adds an extra step to your closing process and may involve additional administrative expenses. However, federal law requires that we submit this information to close the transaction.
Important Note: We cannot proceed with a closing if the required information is not provided. We recommend gathering this documentation early to ensure a smooth, on-time closing.