November 13, 2025

The Financial Crimes Enforcement Network (“FinCEN”) finalized a nationwide rule requiring title companies, escrow agents, and other closing professionals to report all-cash residential property transfers to legal entities or trusts that goes into effect December 1, 2025. The rule aims to improve transparency in real estate transactions and reduce the use of shell companies to conceal illicit funds. Effective December 1, 2025, the rule (titled “Anti-Money Laundering Regulations for Residential Real Estate Transfers”) will make beneficial ownership reporting a mandatory component of most entity-based cash closings across the United States.

Under the new framework, a “reporting person” must file a Real Estate Report with FinCEN for any non-financed residential transaction where the buyer is a legal entity or trust. The filing must include details about the transferee’s beneficial owners, entity structure, citizenship, and ownership interests. Transfers made directly to an individual are not covered by this rule. Title and settlement companies that transact with entities and trusts, however, should collect and maintain extensive ownership documentation for five (5) years.

For industry participants, the operational impact is significant. Title and settlement firms should consider: (1) identifying which transactions qualify, (2) establishing internal reporting procedures, and (3) training staff to verify beneficial ownership information before closing. Lenders and investors involved in private or portfolio transactions should also assess whether their participation triggers reporting duties and consult counsel for guidance on compliance.

Click HERE for the full text of the rule.