Certain transactions to be subject to FinCen March 1

Talk to your title company ASAP about your current under-contract transactions

Attention all UAR members,

The Financial Crimes Enforcement Network, or FinCen, has established anti-money laundering regulations applicable to specific real estate transfers. Although previously delayed, implementation is currently set for March 1, 2026.

Affected real estate sales transactions will require the title company to submit a real estate report to FinCen. The most common scenario includes the following three components:

  1. Residential property (existing 1-4 family property or land that is intended to become a 1-4 family property)
  2. Non-financed transaction (non-traditional lending including hard money lending, cash or seller-financed transaction)
  3. Buyer is an entity or trust

Buyer Requirements

For applicable transactions, the buyer will need to give the title company the following information:

  • The entity name and its beneficial owners (those with 25% or more of the ownership interest)
  • If a trust, the trustee and the grantors
  • The name of anyone signing for the buyer
  • Names, addresses, Social Security numbers (SSN), employer identification number (EIN), and taxpayer identification number (TIN) for each beneficial owner owning 25% or more of the entity

Seller Requirements

The seller will need to provide the title company with their name, address and SSN, EIN or TIN.

Split Closing

In a split closing, the buyer’s title company will be the reporting entity, and sellers will need to provide their information to both title companies.

Additional Information to Provide to Title Company

The title company will also need:

  • The total compensation amounts for the transaction
  • Any private loan details, if applicable
  • All details about the transfer/transaction

****IMPORTANT: REALTORS® must communicate early in the transaction with the title company. If the title company doesn’t get all the required information from both the buyer and the seller, the transaction closing date may be delayed.

REPC Implications

Section 3.1 of the REPC describes that the buyer and seller “have delivered to each other or to the escrow/closing office all documents required by the REPC, by the lender, by the title insurance and escrow closing offices”.

For these non-financed transfers/transactions in which the buyer is an entity or trust, this information is required by the title insurance and escrow closing offices.

FinCen Fees

Buyers in FinCen-reportable transactions should expect to see fees of $300-$400 for the additional reporting and retention requirements imposed on the reporting person.

Next Steps

If you have a property under contract today, please check with your title company to see if your transaction will require that the title company submit a real estate report to FinCen.

For additional information, visit FinCen’s website.