Some residential home sellers and residential home buyers may not be aware of The Financial Crimes Enforcement Network (FinCn). This agency has rules specific to real estate crime and has just published new rules effective 3/1/26.
WHY THE NEW RULE?
This new crime rule is two fold:
- Prevent money laundering
- Increase transparency within real estate transactions
WHAT AND WHO DOES THIS NEW RULE AFFECT?
These new FinCn rules affect mostly residential real estate and vacant land purchased vacant lots only when used for residential homes. This new rule affects three specific criteria:
#1 - Transfer of residential property
#2 - A non-financed transaction that includes:
- Cash Hard
- Money Loans Private/Seller Loans (Owner Carry)
#3 - Transfer is to a legal entity or trust
NOTE: Residential property is defined as:
- Home
- Condos
- Townhouses
- Vacant Lots for Residential Use
As mentioned earlier this rule become effective March 1, 2026 and reporting by Escrow and Title takes place if any of the above criteria are met
WHAT IS THE IMPACT TO RESIDENTIAL HOME SELLERS?
- New disclosure forms
- Additional forms to be determined
WHAT IS THE IMPACT TO RESIDENTIAL HOME BUYERS?
- Details of the trust or LLC entity as to ownership and control must be provided
- Personal information of those individuals.
Title and Escrow firms will collect this information and report collected information to FinCN.
A FUTURE PREDICTION
My sense is in the future vacant land sellers and vacant land buyers will probably see a similar rule especially with foreign sellers and buyers.
So residential home sellers and residential home buyers don't be surprised by these new FinCn Rules, just be prepared ahead of time to reduce your frustration and stress levels.
P.S. Please consider checking out my Facebook business page, The Grit and Gratitude Agent that will focus on the Dirt Roads in Mohave County as well local real estate, lots of dirt or vacant land parcels as some of the local attractions.
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Leanne M Smith, The Grit and Gratitude Agent Who Goes the Extra Mile Because Life Begins Where the Pavement Ends.
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