02/27/2026
Hoping to crack down a little bit on real estate fraud!
By: Eliana Block
Closing and settlement agents will be responsible for submitting a new report to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
Hands over contracts and keys
© Kmatta / Moment / Getty Images
A new federal residential real estate rule aimed at cracking down on money laundering goes into effect Sunday.
Under the rule, when entities or trusts buy residential real property without financing, including all-cash sales and sales involving non-regulated lenders, a report listing the names of the entity or trusts’ individual beneficial owners, addresses, Social Security numbers and more, must be reported to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Exceptions are included herepdf.
In general, a closing or settlement agent is responsible for collecting the information and submitting the Real Estate Report to FinCEN by a date 30-60 days following the transaction's closing. If a closing or settlement agent is not involved there’s a line of succession to whom the responsibility falls.
While real estate agents and brokers won’t be involved in the reporting process, it’s important they’re aware of the change to educate buyers so that their clients are prepared. Title companies and closing attorneys likely will not close one of these transactions unless all required information is collected prior to closing.
