Big Changes Ahead: What FinCEN’s New Rule Means for Your Closing
At Yavapai Title Agency, we’re all about making your closing smooth and stress-free. That’s why we want you to know about an important change coming to real estate transactions. The Financial Crimes Enforcement Network (FinCEN) has introduced a new reporting rule.
What’s This All About?
FinCEN wants to increase transparency in real estate and prevent money laundering. The new rule requires reporting when the following three criteria exist: transfer of a residential property, transaction is considered non-financed (think all-cash deals, hard money loans, private/seller loans) transfer is to a legal entity or trust. (Residential property shall include homes, condos, townhouses, and even vacant lots intended for residential use.)
When Does It Kick In?
March 1, 2026 – any qualifying transaction that closes on or after March 1, 2026 must be reported to FinCEN.
How Does It Affect You?
- Buyers using an LLC or trust: You’ll need to share details about who owns or controls the entity or trust. That means providing names and some personal information for those individuals.
- Sellers: You’ll have a few extra disclosures and forms to complete during closing. Your title and escrow team will guide you through what’s needed.
Why It Matters
This is a nationwide rule—no dollar limits, no geographic restrictions. If you’re planning a non-financed purchase of a residential property through an entity or trust, expect a few extra steps.
What Should You Do?
- Buyers: Talk to us early. Be ready to share ownership details.
- Sellers: Know that your closing will include new forms and disclosures to help us file the report.
- Everyone: Don’t worry—we’ll make sure it’s handled smoothly.
FAQ: FinCEN Real Estate Reporting Rule
Does this apply to financed transactions?
Nope! It only applies to non-financed deals—typically all-cash or private financing and hard money loans.
What properties are covered?
Residential real estate: single-family homes, condos, townhouses, co-ops, and vacant land intended for residential use.
Who files the report?
Usually your settlement agent (that’s us!), but we’ll need info from buyers and sellers to complete it.
What info is required?
For buyers using an entity or trust: beneficial ownership details. Sellers may need to confirm transaction details and sign compliance forms.
Are there penalties for skipping this?
Yes—civil fines and, in serious cases, criminal penalties. We will be unable to close transactions subject to reporting without first having all the necessary details from the buyers and sellers.
At Yavapai Title Agency, we’re here to keep your closing simple—even when the rules change.
Have questions? Reach out to us anytime. We’ll walk you through every step.
