Treasury to Require New Reporting for Residential Transactions March 1

NOTE: A federal judge in Texas has vacated the Financial Crimes Enforcement Network’s (FinCEN) nationwide anti-money laundering rule requiring title insurance companies to report details of millions of residential real estate transactions. While this decision continues to work its way through the courts, many title companies are continuing to collect the information required and charging a fee to collect the information.

Starting March 1, 2026, certain residential real estate transactions will require reporting to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

What’s the Point of the Rule?

It has been discovered that legal entities and trusts may purchase residential property for money laundering purposes, which can distort markets and disadvantage legitimate buyers and sellers.

Which Transactions Must be Reported?

A transfer is reportable when all of the following conditions are met:

1. The real property is residential
2. The transfer is non-financed
3. The property is transferred to a certain type of entity or trust
4. An exception does not apply.

Who Files the Report?

It will usually not be the responsibility of a real estate license holder to file the report. In most cases, the report will be filed by the closing or settlement agent through a title company or another real estate professional involved in the settlement of the transfer of the property.

If you have a transaction closing on or after March 1, reach out to the title company to determine what additional steps may may be taken to determine whether your client is subject to the new reporting requirements and inform the clients prior to closing.

Where Can I Get More Information?

Visit the Residential Real Estate Reporting pages on fincen.gov for details about the rule, a guide to rule exceptions, what must be in the report, and answers to other common questions.

It is imperative that you are aware of these new reporting requirements in case your clients have questions. It’s possible that title companies may delay closing to obtain the necessary information to complete the report. In addition, some title companies may request payments for the costs to prepare and file these reports.

What’s Next?

TREC will be considering adding language to the residential sales contracts to address the reporting requirement and the payment of any associated fees that may be incurred.

Texas REALTORS® will continue to monitor, engage, and keep you updated on any new developments to the Residential Real Estate Rule and its implementation.