What is FinCEN? FinCEN is a federal agency under the U.S. Department of the Treasury that monitors financial crimes like money laundering. Real estate has historically been used to hide illegal money, so the government created rules requiring certain real estate transactions to report who the real buyer is. Starting March 1st, 2026, professionals involved in closing transactions, (title companies, attorneys, etc.) must submit a Real Estate Report to FinCEN for certain non-financed residential property transfers, to entities. Here is what real estate investors need to know. If you are buying residential property with cash, or through an LLC, Partnership, Corporation or trust, certain transactions now require reporting the actual owners behind the entities. These rules are meant to increase transparency in real estate transactions, and prevent criminals from hiding ownership through LLCs, trusts, or even shell companies.
If the investor purchaser buys through an LLC or other entity, the reporting party may require the full legal name of the actual owner, date of birth, residential address, Citizenship, Tax ID or Social Security Number and their ownership percentage in the entity. This information identifies the “beneficial owner”, the actual person who owns 25% or more or has control of the entity. If a real estate buyer is not a U.S. Citizen, purchasing through an entity, and using cash, the Closing Agents often perform extra compliance checks with Passport verification, source of funds questions and Beneficial Ownership Identification. FinCEN reporting does not mean the buyer is under investigation, or the transaction is suspicious or that the information becomes public. It is simply federal compliance, similar to bank procedures when opening up new accounts.
If you have any questions on how FinCEN can affect your transactions, please contact 407-544-0827. TrustHome Properties. Your trusted advisor.
