02/16/2026
🚨 New FinCEN Rule: Mandatory Buyer & Seller Reporting for Residential “Cash” Deals 🚨
Big changes are coming to residential real estate transactions beginning March 1, 2026.
According to the FinCEN flyer, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) will now require mandatory reporting for certain residential real estate transactions without institutional lender financing, especially where a buyer is a legal entity (LLC, corporation, partnership, trust, etc.).
Here’s what you need to know:
🔹 Applies nationwide (not limited to certain counties)
🔹 No dollar threshold – applies regardless of sales price
🔹 Covers most 1–4 family residential properties, including vacant land intended for residential construction
🔹 Requires detailed disclosure of buyer and seller information
🔹 Buyer will be responsible for paying fees related to preparing and filing the FinCEN report
🔹 Significant penalties for non-compliance
Both buyers and sellers will be required to provide detailed identifying information to the closing agent, including beneficial ownership details for entities and trusts.
Additionally, a revised FAR/BAR contract will reflect these new obligations.
💡 Why this matters:
If you are purchasing property in Florida through an LLC or trust, especially in a “cash” transaction, you should be prepared for additional documentation and disclosure requirements.
As always, staying informed now prevents surprises at closing later.
If you have questions about how this may impact your next purchase or sale, especially here in Sarasota, FL and surrounding areas, I’m happy to help guide you through it.
