New Reporting Rule Targets Certain All-Cash Home Purchases
A new federal rule aimed at preventing money laundering in residential real estate transactions took effect March 1, 2026.
The rule requires certain information to be reported when residential property is purchased without financing through legal entities or trusts, including many all-cash transactions.
REALTORS® are not responsible for filing the report, but it’s important to understand the change so buyers know what information may be required before closing.
What the Rule Requires
Under the new rule, transactions involving entity or trust buyers purchasing residential real estate without financing must be reported to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
The report identifies the individuals who ultimately own or control the entity purchasing the property.
Required information may include:
- Names of beneficial owners
- Addresses
- Social Security numbers
- Other identifying details
Reports must generally be submitted within 30–60 days after the transaction closes.
Who Is Responsible for Reporting
In most transactions, the closing or settlement agent will collect the required information and submit the report to FinCEN.
If a closing or settlement agent is not involved, the responsibility shifts through a defined order of transaction participants.
Because of this structure, real estate agents and brokers are not responsible for filing the report.
However, agents should be aware of the requirement so buyers using entities or trusts are prepared to provide the necessary information during the closing process.
Title companies and closing attorneys may require this information before closing to ensure compliance.
Why the Rule Was Created
Federal regulators say some illicit actors use legal entities or trusts to hide their identities when purchasing residential real estate.
These transactions often involve all-cash purchases, which can avoid the scrutiny typically applied by financial institutions during financed transactions.
The reporting requirement is designed to bring greater transparency to these transactions and help prevent misuse of the real estate settlement process.
According to FinCEN, the information collected will be stored in a secure federal database that is not accessible to the public.
How Many Transactions Could Be Affected
The exact number of affected transactions is difficult to determine, but available data suggests the rule could apply to a significant portion of the market.
According to the National Association of REALTORS®:
- About 28% of home purchases last year were all-cash transactions
- Nearly 22% of residential purchases involved entities or trusts
FinCEN estimates that 800,000 to 850,000 transactions annually may require reporting under the rule.
Learn More
The National Association of REALTORS® will host a no-cost webinar featuring a FinCEN official on March 11 to help members understand the new rule and best practices for transactions involving entity buyers.
FinCEN has also published an extensive FAQ explaining the reporting requirements and how the rule works.