The FinCEN Residential Real Estate Reporting Rule was created by the U.S. Department of the Treasury to increase transparency in certain non-financed residential transactions involving legal entities and trusts.

It is a nationwide federal compliance requirement, not a lender rule and not a local policy.

A transaction may be reportable if it involves:

• An all-cash residential purchase

• An LLC, corporation, partnership, or trust as the buyer

• No financing from an AML-regulated lender

Not all cash deals are reportable. Each file is reviewed individually based on federal criteria.

For agents, the biggest impact is timing and awareness.

If a transaction is reportable, your client may need to provide:

• Entity formation information

• Tax identification numbers

• Beneficial owner details (25% or greater ownership)

• Government-issued identification

Early communication with buyers helps prevent closing delays.

We recommend identifying entity (LLC) and Trust purchasers at contract stage whenever possible.

If a file is reportable, we will:

• Confirm reporting responsibility

• Notify appropriate parties

• Collect required information through a secure portal

• File the federal report within the required timeframe

Our team has implemented structured internal procedures to ensure compliance does not disrupt your closing.

Under the FinCEN Residential Real Estate Reporting Rule, “non-financed” does not simply mean a transaction labeled as a cash sale in the contract.

A transaction is considered non-financed when no loan is provided by a federally regulated, Anti-Money Laundering (AML) covered financial institution at closing.

This means:

• If a buyer obtains a mortgage or loan from a traditional bank, credit union, or other AML-regulated lender, the transaction is generally not reportable, regardless of amount.

• If a buyer funds the purchase entirely with cash, private funds, hard money, or financing from a non-AML lender, the transaction may be considered non-financed for FinCEN purposes.

Each file must be evaluated based on the source and structure of the funds, not just the contract language.

Because financing structures can change during the transaction, Foothills Title reviews every file prior to closing to determine whether reporting is required.

When in doubt, ask early. We’re happy to review the structure and provide guidance.

If the transaction is reportable under FinCEN and the buyer is purchasing through a trust, certain information may be required to complete federal reporting.

Your client may be asked to provide:

• Full legal name of the trust

• Date the trust was created

• If the trust is revocable or irrevocable

• Tax Identification Number (if applicable)

• Name(s) of trustee(s)

• Identification information for the individual(s) exercising control over the trust

• Government-issued identification for required individuals

In addition to trust details, federal reporting requires information regarding the source of funds used to complete the purchase.

Buyers may be asked to provide:

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

• Name of the financial institution sending funds

• Originating account details and, if necessary, documentation verifying the source of funds

• Amount of funds used for the transaction from each account

This requirement helps document how the purchase was funded when no AML-regulated lender is involved.

Not every trust purchase is automatically reportable. Each file is evaluated based on the federal criteria and the structure of the transaction.

Encouraging trust buyers to have formation documents and trustee information readily available can help avoid delays.

If the transaction qualifies as reportable and the buyer is a legal entity (LLC, corporation, partnership, etc.), FinCEN requires detailed entity and ownership transparency information.

Your client may be asked to provide:

• Full legal entity name

• State of formation

• Formation date

• Tax Identification Number (EIN)

• Principal business address

• Identification of all beneficial owners (individuals owning 25% or more)

• Identification information for the individual exercising substantial control

• Government-issued identification for required individuals

In addition to Entity / LLC details, federal reporting requires information regarding the source of funds used to complete the purchase.

Buyers may be asked to provide:

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

• Name of the financial institution sending funds

• Originating account details and, if necessary, documentation verifying the source of funds

• Amount of funds used for the transaction from each account

This requirement helps document how the purchase was funded when no AML-regulated lender is involved.

This information is collected securely through Foothills Title and reported directly to FinCEN when required.

The most common cause of delay is late identification of beneficial owners, especially in layered ownership structures. Early awareness and preparation are key.

The FinCEN Residential Real Estate Reporting Rule is generally triggered based on the structure of the buyer and the nature of the financing.

However, once a transaction is determined to be reportable, certain transaction-level details must also be included in the federal filing, and that may require limited seller information.

FinCEN reporting is not just about who is purchasing the property. The report must document:

• The property involved

• The purchase price

• The method of payment

• The date of closing

• Identifying information for parties to the transaction

In some cases, confirming seller details ensures the report is accurate and complete.

Importantly:

• The seller is not being investigated.

• The reporting obligation does not shift to the seller.

• The settlement agent remains responsible for filing the report.

This is a transparency requirement tied to the transaction itself, not an indication of concern regarding any party.

Foothills Title collects only the information necessary to meet federal requirements, nothing more.

Financing structure at closing determines reportability.

If an AML-regulated lender is involved at closing, the transaction is generally not reportable. However, if the deal ultimately closes without qualifying financing, it may become reportable.

Changes late in the transaction can impact compliance requirements, which is why early communication is important.

The current rule applies to certain residential real estate transactions.

Commercial-only properties are generally outside the scope of this specific reporting rule.

Mixed-use properties may require additional review based on how they are classified.

If a transaction qualifies as reportable, federal law requires the settlement agent to file the report within a specific timeframe.

If required information is not provided, closing may need to be paused until compliance requirements are met.

Foothills Title communicates early when reporting is triggered to help prevent this situation.

Yes.

This is a federal regulation issued by the U.S. Department of the Treasury. It is not a temporary program.