01/23/2026
**IMPORTANT ANNOUNCEMENT REGARDING NEW GOVERNMENTAL FILING REQUIREMENTS FOR REAL ESTATE TRANSACTIONS UNDER FINCEN**
WHAT IS FINCEN? FINCEN is the governmental “Financial Crimes Enforcement Network” that combats financial crimes like money laundering and terrorist financing by enforcing regulations and collecting and analyzing financial intelligence to safeguard the financial system. FinCEN's new Real Estate Rule (RRE) creates a nationwide requirement for certain real estate professionals to report high-risk, non-financed (all-cash/private financing) residential property transfers to legal entities or trusts, aiming to combat money laundering by increasing transparency. This rule, replacing Geographic Targeting Orders, applies to single-family homes, condos, co-ops, and certain vacant land, requiring detailed info on buyers, sellers, properties, and beneficial owners to be filed by the settlement agent, with significant penalties for non-compliance.
WHEN ARE FINCEN REPORTS REQUIRED? Under a new federal requirement, all settlement and title offices and attorneys who file deeds nationwide are required to collect information and file a mandatory FinCEN Real Estate Report whenever a residential property is transferred without financing and any buyer is an entity or trust. This is a common new report with nearly one million estimated filings per year across the U.S. for transactions that close after 3/1/2026. There is no minimum price threshold for this rule. It applies to gifts and most no consideration transfers.
WHAT DOES THIS MEAN FOR MY REAL ESTATE TRANSACTIONS IF I HAVE AN LLC OR TRUST OR CORPORATION? The Title Company of Warren Agency, Inc. and Burkey, Burkey & Scher Co., LPA will be required to obtain from you information about the beneficial owners of the company or trust and the transaction and report that to FINCEN. We will be using a Third Party Vendor to gather that information and report it on our behalf, and there will be a fee of approximately $125.00 per side to report this information that will get added to every transaction or deed transfer. TCOW and BBS do NOT retain any portion of this fee. This fee is charged by the Third Party Vendor for this service.
WHAT IF I REFUSE TO PROVIDE THE INFORMATION? TCOW and BBS will not be able to perform the transaction for you. There are significant penalties of fines up to $500.00 per occurrence and up to five years in jail.