Please note significant regulatory changes are coming to the real estate industry. Starting March 1, 2026, certain entities that purchase residential property may be required to disclose detailed ownership information to the federal government.
A newly issued rule from the Financial Crimes Enforcement Network (FinCEN) is designed to increase transparency in real estate transactions by identifying the beneficial owners behind entity and trust purchasers.
- Capstone Land Transfer is hosting a FREE virtual seminar on FinCEN requirements on March 5! Sign up here.
Title agencies, attorneys and other entities, are required to file reports to FinCEN within a short period of time after closing. Please contact our office for more information on this new rule. Basic information on these requirements is below (not intended to be exhaustive):
FinCEN reporting: 3 basic criteria
The Financial Crimes Enforcement Network, or FinCEN, will require a report if a transaction meets all of the following criteria:
- It is a residential property: This includes single-family homes, condominiums, and cooperatives, as well as vacant land zoned or permitted for the construction of a structure designed for occupancy by one to four families.
- The buyer is an entity or a trust: The rule specifically targets “transferees” that are legal entities—such as LLCs, corporations, and partnerships—or legal arrangements like trusts, which are often used to obscure the identity of the true owner.
- No traditional bank mortgage: Reporting is only triggered for “non-financed” transfers, meaning the transaction does not involve an extension of credit from a financial institution that is already subject to federal anti-money laundering programs.
When do new FinCEN reporting requirements go into effect?
The new reporting requirements apply to transfers occurring on or after March 1, 2026.
- Filing Deadline: Once a reportable transfer occurs, the “Reporting Person” must file the Real Estate Report by the later of 30 calendar days after the date of closing or the final day of the month following the month in which the closing occurred.
- Retroactivity: It is important to note that the rule is NOT retroactive; transactions that close before March 1, 2026, do not require a report, even if they would have otherwise met the criteria.
For these transactions, Capstone will alert agents, buyers, sellers and other responsible parties to the new reporting and distribute necessary information. Capstone is working to keep additional fees for FinCEN reporting requirements as low as possible. Please contact our office at 717-857-7772 for more details.
