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New FinCEN Residential Real Estate Reporting Rule
Post on February 25th, 2026

Effective March 1, 2026, professionals involved in residential real estate closings will be required to file a Real Estate Report for certain real estate transfers.  

Which real estate transfers require the filing of a Residential Real Estate Report? 

The Anti-Money Laundering Regulations for Residential Real Estate Transfer final rule issued by The Financial Crimes Enforcement Network (FinCEN) requires the report for transfers in which ALL of these conditions are met: 

  • the property is residential real estate, 
  • the property is transferred without financing from a bank or similar financial institution, such as an all-cash purchase or a gift, 
  • the property is transferred to a qualifying legal entity or trust, such as an LLC, and 
  • the transfer is not covered by an exception. 

The FinCEN Fact Sheet confirms that there is no reporting requirement when the homebuyer is an individual or when the transfer is financed with a mortgage. 

Who must file the Real Estate Report? 

When required, the Real Estate Report must be filed by real estate professionals listed in a “reporting cascade.”  This means that if the first function is performed, that person would be the reporting person. If not, reporting moves to the next person. The order of responsible professionals can be found in FAQ I.1. and I.2.   

In addition to the described reporting cascade, a written agreement may designate another person that performs a function in the reporting cascade as the reporting person. The person that would have been the reporting person must be a party to the agreement. This may be a preferable option for attorneys involved in reportable transactions.  

When must a Real Estate Report be Filed? 

The Real Estate Report must be filed by the last day of the month following the month in which the date of closing occurred or 30 calendar days after the date of closing, whichever is later. Beginning March 1, 2026, a report can be filed using the BSA E-filing System.  

For more information on the Residential Real Estate Reporting requirements, FAQs, and process guidance, see: 

For attorneys in estate planning, real estate, and other impacted practice areas, this rule may be highly relevant. Don’t hesitate to share this email with your colleagues, and as always, reach out if we can be of assistance.

Gretchen K. Mote, Esq.
Director of Loss Prevention
Ohio Bar Liability Insurance Co.
Direct:  614.572.0620
gmote@oblic.com		 Merisa K. Bowers, Esq.
Director of Marketing and
 Loss Prevention & Outreach Counsel
Ohio Bar Liability Insurance Co.
Direct:  614.859.2978
mbowers@oblic.com

This information is made available solely for loss prevention purposes, which may include claim prevention techniques designed to minimize the likelihood of incurring a claim for legal malpractice. This information does not establish, report, or create the standard of care for attorneys. The material is not a complete analysis of the topic and should not be construed as providing legal advice. Please conduct your own appropriate legal research in this area. If you have questions about this email’s content and are an OBLIC policyholder, please contact us using the information above.