Fortunately I had the seller so who you only had to sign one extra form and didn't charge him any more money The buyer however had many forms to sign and they were charged $185
As of March 1, 2026, the Financial Crimes Enforcement Network (FinCEN) has officially implemented its nationwide Residential Real Estate Reporting Rule. This replaces the previous, more limited "Geographic Targeting Orders" with a permanent, country-wide framework.
Here is a recap of the rules and how they affect your transactions:
1. The "Three-Prong" Trigger
A transaction is only reportable if it meets all of the following criteria:
Residential Property: Includes single-family homes, 1–4 unit buildings, condos, townhomes, co-ops, or vacant land intended for a 1–4 family residence.
Non-Financed ("All-Cash"): The purchase does not involve a mortgage from a bank or a lender subject to federal Anti-Money Laundering (AML) rules. This includes "hard money" loans or private financing.
Transferee is an Entity or Trust: The buyer is a corporation, LLC, partnership, or trust (with limited exceptions). Transfers to individual humans do not trigger this rule.
2. Who is Responsible for Reporting?
FinCEN uses a "Reporting Cascade" to determine who must file. It is typically the professional who performs the highest function on this list:
The settlement agent listed on the closing statement.
The person preparing the closing statement.
The person filing the deed.
The title insurance underwriter.
The person/company distributing the funds.
The person preparing the title status.
The person preparing the deed.
Note: Real estate agents and brokers are generally not the ones reporting unless they are performing one of the specific settlement functions above. However, agents are encouraged to educate their clients on these requirements to prevent closing delays.
3. Required Information
The reporting person must file a Real Estate Report (via the BSA E-Filing System) containing:
Beneficial Owners: The name, date of birth, residential address, and a unique ID number (like a passport or driver's license) for any individual who owns/controls 25% or more of the buyer entity or has "substantial control."
Seller Info: Legal name, address, and Taxpayer Identification Number (TIN).
Transaction Details: Total consideration paid and the method of payment (e.g., wire transfer, check).
4. Deadlines & Penalties
Filing Deadline: The report must be filed by the last day of the month following the month of closing, or 30 days after closing, whichever is later.
Penalties: Non-compliance carries heavy weight. Negligent violations can cost roughly $1,394 per violation, while willful violations can lead to fines up to $250,000 and up to five years in prison.
5. Common Exceptions
Reporting is not required for:
Transfers resulting from death (wills, trusts, or intestate succession).
Transfers incident to a divorce or dissolution of marriage.
Transfers to a bankruptcy estate or those supervised by a court.
Transfers to a "qualified intermediary" for a Section 1031 exchange.
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