Newly Issued FinCEN Residential Real Estate Rule – Effective March 1, 2026

Major compliance changes are coming to residential real estate transactions.

What is FinCEN?

The Financial Crimes Enforcement Network (FinCEN) is a branch of the U.S. Department of the Treasury that oversees efforts to prevent money laundering and the use of real estate to hide illicit funds. To improve transparency in property ownership, FinCEN currently enforces Geographic Targeting Orders (GTOs) that require banks and other businesses, like title companies, to report who controls the purchasing entity or trust in certain all-cash transactions of residential property in New York, where the sale price is over $300,000.00.

Upcoming Changes

Beginning March 1, 2026, GTOs will be replaced by the new FinCEN Residential Real Estate Rule, which expands reporting requirements nationally and applies to a broader range of transactions. FinCEN formally postponed the rule’s effective date from December 1, 2025, to March 1, 2026, to give the real estate industry more time to prepare for compliance.

Here’s What to Know:

  • Applies nationwide, no longer limited to specific areas.
  • Eliminates the $300,000 threshold: now no-consideration transfers may be reportable.
  • Covers all-cash purchases by entities and trusts acquiring 1–4 family residential property.

What Must Be Disclosed?

Title companies or other settlement agents handling closings will typically be responsible for submitting a Real Estate Report (RER) to FinCEN within 30 days of closing.

The following must be disclosed in a RER:

  • Legal names, addresses, and birth dates of beneficial owners
  • Government-issued photo ID (driver’s license or passport)
  • Entity or trust documentation and registration details
  • Source of funds used to complete the transaction

What This Means For You:

If you are part of an entity or a trust purchasing a one-to-four family residential property without financing (all cash transaction), the transaction is subject to FinCEN reporting requirements and the purchasing entity must disclose all “beneficial owners” who directly or indirectly own 25% or more of the equity interests of purchase in such entity.

How KMWB Can Help

KMWB is closely monitoring the rollout of this new federal rule and is advising clients on compliance strategies and transaction planning ahead of its March 1, 2026 effective date.

As these obligations evolve, our team remains committed to ensuring your transactions proceed smoothly, efficiently, and in full compliance with law.

For guidance on how this new rule may affect your real estate holdings or upcoming deals, contact Bessie Hadjigeorghi at BessieH@kuckermarino.com.

Media Contacts:

Valerie Shutack
Kucker Marino Winiarsky & Bittens, LLP
(212) 869-5030
vshutack@kuckermarino.com