What Does fincen mean for...
consumers
The new rule from Financial Crimes Enforcement Network (FinCEN) is designed to prevent money laundering in real estate by requiring certain all-cash home sales to be reported to the government. If a property is being sold without a traditional bank mortgage and the buyer is an LLC, corporation, or trust instead of an individual person, the closing agent or title company must file a confidential report with FinCEN that includes basic details about the transaction and the parties involved. Sellers and buyers don’t have to file anything themselves, but they may be asked to provide identifying information at closing. For most everyday buyers using a mortgage or purchasing in their own name, nothing changes — but cash purchases through entities may involve a little extra paperwork to ensure transparency and compliance.
real estate agents
For real estate professionals, the new rule from Financial Crimes Enforcement Network (FinCEN) adds a compliance step to certain residential closings, particularly all-cash transactions involving LLCs, corporations, partnerships, or trusts. While agents are not typically the “reporting person,” you should expect title companies or settlement agents to request additional buyer and seller information so they can complete the required Real Estate Report. This means gathering accurate entity names, ownership details, and identification information early can help avoid closing delays. Practically speaking, most financed or individual-to-individual transactions won’t be affected, but entity or trust purchases without bank financing may involve extra documentation and coordination, so agents should educate clients upfront and build a little extra time into the closing process to stay compliant.
Settlement companies/ title agents
Settlement and title agents play a central role in complying with the reporting requirements established by the Financial Crimes Enforcement Network (FinCEN) for certain residential real estate transactions. In most cases, they are designated as the “reporting person,” meaning they are responsible for collecting the necessary buyer and seller information, verifying entity or trust details, and electronically filing the required Real Estate Report after closing. This adds an extra layer of due diligence to all-cash or entity-based purchases, making it important for settlement and title professionals to request documentation early, coordinate closely with agents and clients, and ensure filings are accurate and submitted on time to avoid penalties.
