The Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury, has released an expansive Residential Real Estate Reporting Rule which represents one of the biggest changes to ever hit real estate professionals from a regulatory standpoint. Initially scheduled to go into effect on December 1, 2025, the implementation date has been pushed back by FinCEN to March 1, 2026, granting industry participants a short span of additional months in which to get ready for vast new compliance mandates.
At Strategy Law, we are dedicated to assisting title companies, escrow agents, lawyers and other real estate professionals understand what this rule is about and how it affects them, and what action required by the Dec. This is the first installment of a 10-part series that will detail FinCEN’s new residential real estate reporting requirements, one section at a time, to keep you informed (and in compliance) before others catch on.
What Is the FinCEN Residential Real Estate Reporting Rule?
The rule is also the latest step by FinCEN to tackle money laundering and other illicit financial activity through nonloans real estate transactions. Buying real estate for cash has historically been an easy way to launder dirty money, especially through shell companies or trusts.
To close that loophole, FinCEN’s rule mandates the reporting of certain residential real estate transactions not plied with a bank loan or mortgage. This would place title companies, settlement agents and lawyers closing such deals on the legal hook for reporting crucial information about the transaction itself and the buyers and beneficial owners involved.
Who Is Affected?
The rule covers title insurance companies, escrow agents, settlement agents and attorneys who are a part of covered transactions, solely those invloving all-cash or non-financed purchases of residential real estate.
More scrutiny will be applied to some countries. The list of covered areas will be amended by FinCEN as the rule goes into effect, and so far has included each of Santa Clara County and San Francisco County as those who have been identified.
For advisers with clients in these areas it is a good time to begin reviewing transaction processes and making sure reporting arrangements are in order.
What Must Be Reported?
The rule will mandate that information be reported to FinCEN, specifically:
- Identification of the buyer’s legal entity or natural person buying property
- Beneficial ownership information (BOI) for involved entities
- Details of the property, such as address and purchase price
- Payment methods and transaction structure
In respect of the date and nature of the transfer;
Filing will be done electronically with FinCEN within a specified period of time, often 30 days from closing.
To those who have worked under FinCEN’s Geographic Targeting Orders (GTOs), these requirements will look familiar, albeit in a more defined and formalized form as part of a national regulatory scheme, since GTOs were merely temporary measures.
Why It Matters
This rule is one of the biggest compliance-related burdens that the real estate industry faces. Non-financed deals, which are commonly considered “low-risk”, will now require more thorough checks, documentation, and prompt reporting.
Non-compliance could subject both practitioners and their employers to civil or, in some cases, criminal liability.
Reputational risk and potentially disrupt closings. Troublesome though these penalties are, they aren’t the only concern, which is why you need to know about the rule now.
At Strategy Law, we’re working with our clients throughout San Jose, San Francisco, and the East Bay area to develop proactive plans for compliance. This includes reviewing client onboarding processes, data capture systems, and trade reporting procedures to be prepared upon the rule becoming active.
What’s Next in This Series
This article is the start of Strategy Law’s 10-part FinCEN Compliance Series, which we have prepared for you to guide you through step-by-step how these new reporting requirements work.
In the next blog, we’ll explore:
➡️ Part 2: FinCEN’s Geographic Coverage Explained, How the Rule Impacts Santa Clara, San Francisco, and Other Targeted Areas
You’ll find out which jurisdictions are included, how FinCEN categorizes high-risk areas, and what it will mean for professionals who close deals in those areas.
How Strategy Law Can Help
Regulatory change can be difficult to navigate, but you don’t have to navigate it alone.
Our real estate attorneys offer full-service representation to title companies, escrow professionals, and real estate law practitioners. We can help you:
- Audit your current compliance and reporting process
- Learn about your transactions under FinCEN’s rule
- Educate your staff on how to document and what the filing requirements are
- Reduce possible exposure through preventive legal means
Get Expert Guidance Today
Contact us to schedule a consultation and learn more about how you might be affected by the new FinCEN Residential Real Estate Reporting Rule, raising questions with contact Strategy Law, LLP.
We’re here to help you remain compliant and safeguard your interests while also gaining confidence in preparing for the March 1, 2026 deadline.
This blog is written as of November 2025. Recommendations and legal requirements are changing rapidly, so please continue to review our legal updates or review postings on relevant government websites.
All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consultation with counsel. Strategy Law, LLP does not provide any legal advice concerning any matter discussed in a blog except upon formal engagement including, without limitation, execution of Strategy Law, LLP’s formal legal services agreement, and with respect to specific factual situations. No blog constitutes a guaranty, warranty, or prediction regarding the result of any legal matter discussed in the blog or any representation
