To combat illicit actors operating in the residential real estate industry, as of March 1, 2026 the US government requires non-financed transfers of residential real estate to be reported to the Financial Crimes Enforcement Network (FinCEN).
As is true of most governmental things, the duty to report is complex. The requirement to file a report casts an extremely wide net with many defined terms and exemptions.
As one simple example, if you a conveying a residential property (maybe a residence you rent to a tenant) from yourself to a limited liability company you created, the conveyance must be reported – even if no money is involved.
The failure to report can result in fines up to $500,000 and 10 years in prison.
Title companies, real estate agents, attorneys, sellers, buyers, grantors, grantees, trustees, beneficiaries of trusts, officers of business entities, owners of companies and others are all responsible persons. There is a strong motivation to comply with the requirement.
If you are dealing with residential real estate, be prepared to provide the real estate professionals with the data they request.
