New FinCEN Real Estate Reporting Rule to Increase Transparency in Real Estate
Comprehensive Guide for Title Insurance Agencies to Implement FinCEN Real Estate Reporting Requirements
Understanding the New FinCEN Real Estate Reporting Rule | Key Points for Title Insurance Agents
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In August 2024, the Financial Crimes Enforcement Network (FinCEN) issued a final rule to enhance transparency in residential real estate transactions. Effective December 1, 2025, this rule requires specified individuals involved in non-financed residential real estate transfers to report transaction details to FinCEN. The goal is to curb illicit financial activities, such as money laundering, by increasing transparency, especially where properties are transferred through legal entities or trusts.
For title insurance agencies, this rule introduces a range of reporting and recordkeeping responsibilities that may impact day-to-day operations. Here’s a breakdown of how it will affect title insurance agents, key aspects to consider, and a step-by-step guide to compliance.
FinCEN is still in the process of finalizing reporting requirements and processes. This article will be updated as new information becomes available.
The Wicked Title Forum is a crowd-sourced resource. To help us keep our information current and correct, please comment below with any corrections or updates and we will update the article accordingly.
Quick Reference:
Key Points Title Insurance Agents Should Know about the FinCEN Transparency in Real Estate Rule
Who Must Report a Real Estate Transaction to FinCEN?
"Reporting persons" include title insurance agents, settlement agents, escrow agents, and attorneys who perform specific roles in closing or settling real estate transfers. Reporting responsibility is assigned through a "reporting cascade" where the highest-involved party assumes responsibility, or professionals can designate a reporting person through a written agreement.
Reportable Transactions:
Reports are required for non-financed transfers of residential real estate in which the transferee is a legal entity or trust.
Property Types:
The rule applies to residential properties in the U.S., including single-family homes, townhouses, condos, co-ops, and small apartment buildings (one to four units). Vacant land intended for similar structures is also covered.
Information to Be Reported:
The reporting person must provide details about the property, the parties involved, the total consideration paid, and beneficial ownership details, including the names and identifiers (like TINs) of beneficial owners controlling at least 25% of the transferee entity or trust.
Reasonable Reliance:
Reporting persons can rely on information provided by other parties if certified as accurate by the transferee. However, they must report any known discrepancies.
Recordkeeping Requirements:
Reporting persons must keep a record of any certification and the Real Estate Report for five years, supporting compliance and facilitating reviews by law enforcement or FinCEN.
“Transferor” is the seller and “Transferee” is the buyer.
Effective Date of Rule
December 1, 2025. Additional guidance from FinCEN will be forthcoming.
Brief Step-by-Step Compliance Guide for Title Insurance Agents
Step-By-Step
Identify Reportable Transactions
Determine Reporting Responsibility
Collect Information
Report after closing
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