top of page

EFFECTIVE IMMEDIATELY 

FinCEN Reporting Update

What Real Estate Agents Need to Know

FinCEN's new federal reporting rule is designed to prevent money laundering through real estate.​ It requires certain cash purchases made by entities or trusts to be reported to the U.S. Treasury.

Effective March 1, 2026
 

Beginning March 1, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) requires certain residential real estate transactions involving legal entities and trusts to be reported by settlement professionals.
 

These nationwide rules are designed to increase transparency in real estate purchases and help prevent money laundering.
 

escrow321 follows all federal reporting requirements and ensures every reportable transaction is handled accurately, securely, and on time.
 

What Types of Transactions Are Reportable?

A transaction becomes reportable only when all three of the following conditions are met:
 

1. Residential Real Property

The property is residential real estate located in any U.S. county, at any price point.
 

2. Buyer Is a Legal Entity or Trust

Examples include:

  • LLC

  • Corporation

  • Partnership

  • Revocable or irrevocable trust
     

3. Non-Traditional Financing

The transaction qualifies if:

  • It is an all-cash purchase, or

  • Financing is provided by a non-regulated lender (such as a private lender, hard money lender, or seller carryback)
     

Information Required for FinCEN Reporting

If a transaction meets FinCEN’s reporting criteria, escrow321 must collect specific information from the parties involved. Requirements differ for buyers and sellers.
 

Buyer Information Requirements

Buyer Entity Information (LLC, Corporation, Partnership)

  • Full legal name of the entity

  • Trade name or “Doing Business As” (DBA), if applicable

  • Street address of principal place of business (no P.O. Boxes)

  • Taxpayer Identification Number (TIN)
     

Buyer Trust Information

  • Full legal name of trust (as listed on the trust instrument)

  • Date the trust instrument was executed

  • Taxpayer Identification Number (TIN)

  • Whether the trust is revocable (Yes/No)
     

Beneficial Owner Information

FinCEN requires identification of the individual(s) who ultimately own or control the buyer entity or trust.

For each beneficial owner, the following must be provided:

  • Full legal name

  • Date of birth

  • Residential street address

  • Country of citizenship

  • Taxpayer Identification Number (TIN)

  • Signing Capacity (e.g., Corporate Manager, Successor Trustee)
     

Source of Funds (Buyer Requirement)

FinCEN requires documentation of how the purchase funds were transferred.

The following must be provided:

  • Originating financial institution name (bank name)

  • Account number

  • Payor (name listed on the account)

  • Method of payment (wire, check, cashier’s check, etc.)

  • Dollar amount of payment

  • Confirmation of whether funds were transmitted to the settlement agent (Yes/No)
     

Seller Information Requirements

If the transaction qualifies for FinCEN reporting, sellers must provide identifying information based on how title is held.
 

Individual Seller

  • Full legal name

  • Date of birth

  • Residential street address

  • Taxpayer Identification Number (TIN)
     

Entity Seller

  • Full legal name of entity

  • Trade name or DBA name (if applicable)

  • Street address for principal place of business (no P.O. Boxes)

  • Taxpayer Identification Number (TIN)
     

Trust Seller

  • Full legal name of trust (as listed on trust instrument)

  • Date trust instrument was executed

  • Taxpayer Identification Number (TIN)

  • Full legal name of trustee(s)

  • Residential address(es) of trustee(s)

  • Tax ID Number of trustee(s), if they are successor trustees
     

How the Reporting Process Works

  • Reports are filed through the FinCEN BSA E-Filing System.

  • Filing Deadline: Reports are due by the end of the month following the sale, or 30 days after closing — whichever is later.

  • All information required under federal law must be collected before escrow can close.

escrow321 will notify all applicable parties early in the transaction process if FinCEN reporting is required.
 

Who Is Responsible for Filing?

Under the FinCEN rule, the reporting obligation typically falls on the settlement professional handling the transaction. This may include:

  • Settlement agents

  • Title insurance agents

  • Escrow agents

  • Real estate attorneys
     

For transactions handled by escrow321, our team is fully prepared to manage the FinCEN reporting process from start to finish.
 

We proactively identify reportable transactions, request all required documentation early in escrow, and ensure that reports are filed accurately and within the required deadline. Our goal is to make the process seamless for buyers, sellers, and agents while maintaining full federal compliance.
 

Important for Real Estate Agents

FinCEN reporting requirements are not a contingency.
 

Buyers and sellers should be informed of reporting obligations before accepting or presenting offers involving entities or trusts.
 

Offers involving entities or trusts may require identity verification and ownership disclosure prior to closing.
 

Our Commitment

escrow321 is committed to full federal compliance, consumer protection, and the secure handling of sensitive information.
 

If you have questions about how FinCEN reporting may affect your transaction, please contact your escrow321 representative.

bottom of page