Starting March 1, 2026, title companies, attorneys, and others handling real estate closings must report certain property transfers to FinCEN, specifically, when residential property is bought with cash (or private/seller financing) by a legal entity or trust instead of an individual. Real estate agents and attorneys play a critical role in ensuring compliance by helping clients assemble the proper documentation and information.

FinCEN’s goal is to make real estate transactions safer by stopping money laundering through anonymous purchases. Increased transparency supports a fair and secure real estate market for everyone.

For buyers and sellers, this rule helps protect the integrity of your investment. It creates more safeguards against fraudulent activity in property transfers and builds confidence that your transaction is transparent and above board. While you may need to provide additional information during closing, the end result is a smoother, more trustworthy process.

For professionals, this rule brings new responsibilities. Agents and attorneys will need to work more closely with title and closing companies to identify the individuals behind legal entities such as LLCs or trusts. Collecting and verifying this information early is essential to avoid delays or compliance issues at closing. Incorporating this into your client guidance not only prevents penalties but also reinforces your role as a trusted advisor.

This applies to residential property closings for single-family homes, condos, co-ops, some apartment and mixed-use buildings, and vacant land intended for 1-4 family homes made by LLCs, corporations, partnerships, and trusts – not individual buyers.

 

Transactions using traditional mortgage loans in an individual’s name are generally exempt.

Closings will require more documentation about buyers, sellers, or the legal entities or trusts involved, as well as coordination. However, with the right guidance and preparation, your deals can move smoothly and with fewer surprises. Partnering with experts keeps things efficient and compliant.

With Fulton Title, you can count on our team to keep your closing process smooth and stress-free. We’ll guide you through collecting all the required information so your transaction stays on schedule. To help us keep things moving and meet your closing deadline, please provide the necessary details promptly. Keeping in mind that last-minute changes to buyers or legal entities can cause unnecessary delays.

The following details are required:

• The property address, not including PO Boxes
• Full legal names and personal details for both buyer and seller
• Beneficial owners behind legal entities or trusts
• Unique identifying number – your Tax ID number
• The purchase price, payment method, and source of funds
• Contact information of the closing agent/title company

FinCEN restricts access to this data for law enforcement use only, and Fulton Title uses best practices to safeguard client privacy from start to finish.

If the required details aren’t supplied, the title or settlement agent responsible for filing the report could face significant fines and compliance penalties.

For homeowners and investors, this can mean delayed or even canceled closings.

For real estate agents and attorneys, the biggest risks are reputational—clients may hold you accountable for not preparing them properly, and deals can quickly stall without proactive guidance.

That’s why our team works closely with every party involved, making sure the process is handled correctly so your clients, transactions, and professional reputation are protected.