New Rule May Affect Your Real Estate Transactions: What REALTORS® Should Know
A new federal rule issued by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) will impact certain residential real estate transactions starting March 1, 2026.
Although REALTORS® are not responsible for submitting reports, the rule applies to some non-financed residential purchases involving entities or trusts, such as LLCs or corporations. In transactions that fall under the rule, title companies, not REALTORS®, will be required to gather and report information about the beneficial owners of the purchasing entity. What this may mean for transactions:
Buyers or sellers may be asked to provide additional identifying or ownership information.
Closings may be delayed if required details are not provided promptly.
Additional title-related fees may apply.
Reporting is mandatory under federal law.
Information is submitted directly to FinCEN and is neither public nor recorded in county records.
REALTORS® can help transactions move smoothly by setting expectations early, encouraging clients to be prepared, and coordinating closely with title companies. However, the legal obligation to comply with and submit reports rests with the title company, not the REALTOR®. Please review FinCEN’s quick reference guide on the rule, resource page, and reach out to your local title company for more specifics.
This information is provided for educational purposes only and should not be construed as legal advice or representation and should not be relied upon as such. Broward, Palm Beaches & St. Lucie Realtors® and its affiliated companies cannot provide legal advice or opine about the specifics of your situation.
By RWorld Staff
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