Beginning March 1, 2026, a new federal reporting requirement from the U.S. Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN) took effect for certain residential real estate transactions across the United States. The rule is part of a broader federal effort to increase transparency and help prevent money laundering in real estate transactions.

While most home purchases continue to proceed just as they always have, buyers who plan to purchase property using an entity (such as an LLC or corporation) or a trust may be asked to provide additional information during the closing process.

When This Requirement Applies

In certain residential real estate transactions closing on or after March 1, 2026, settlement agents will be required to file a FinCEN Real Estate Report with the U.S. Treasury. This typically applies when:

• The buyer is purchasing the property in the name of an entity or trust, and

• The purchase does not involve a traditional bank mortgage (such as cash purchases, private financing, or seller financing).

These reports are not public records, and the information collected is used only for federal compliance purposes.

What Buyers May Be Asked to Provide

If the requirement applies to a transaction, buyers may be asked to provide basic information about the purchasing entity or trust and the individuals associated with it.

This may include:

• Information about the entity or trust purchasing the property

• Names and identifying information for individuals associated with the entity or trust, such as owners, principals, or trustees

• Basic identifying information such as name, address, and date of birth

• Information about how the purchase funds are being provided

Settlement companies will typically send buyers a secure email link to a short encrypted online form to collect the necessary information. In many cases, completing the form takes only a few minutes.

Why Timing Matters

Because the report must be completed before the transaction can close, providing the requested information promptly helps avoid delays in the closing process.

To help ensure a smooth transaction:

• Buyers should be prepared to provide contact information including an email address

• Agents and settlement providers should be informed as early as possible if a buyer plans to take title in an entity or trust

• Buyers should expect to receive a secure request for information related to this federal reporting requirement

While it is not uncommon for buyers to decide later in the process to purchase under an entity or trust, late changes may impact closing timelines if the required information has not yet been collected.

What This Means for Buyers and Sellers

For most buyers and sellers, this new requirement will simply be another routine step in the closing process. Transactions involving individuals purchasing property in their personal name with traditional mortgage financing will typically not be affected.

If you are planning to purchase property through an LLC, corporation, partnership, or trust, it may be helpful to discuss the structure with your attorney or advisor early in the process so the necessary information is readily available when needed.

Our Commitment to a Smooth Closing Process

At Schaub Team Premier Realty, we stay closely informed on regulatory changes that impact real estate transactions so we can help guide our clients through the process smoothly. If you have questions about how this new requirement may apply to an upcoming purchase or sale, our team is always happy to help.