The Financial Crimes Enforcement Network (FinCEN) has issued final rules requiring certain professionals involved in non-financed residential real estate transactions to report specific information to FinCEN to combat money laundering. These rules, effective December 1, 2025, aim to increase transparency and curb illicit activities in the real estate sector.

What Transactions Are Covered?

Starting December 1, 2025, settlement agents, title insurance agents, escrow agents, and attorneys involved in specific non-financed residential real estate transfers will be required to file a Real Estate Report with FinCEN. This requirement applies to transactions where the property is transferred to a legal entity or trust, including all-cash sales and certain mixed-use or vacant properties intended for residential development.

These rules are designed to target high-risk transactions that bad actors often use to avoid scrutiny, including transactions where the buyer’s identity is obscured through the use of legal entities or trusts. By mandating reporting on these transactions, FinCEN aims to make it more difficult for illicit actors to launder money through the U.S. real estate market.

“The rule will increase transparency, limit the ability of illicit actors to anonymously launder illicit proceeds through the American housing market, and bolster law enforcement investigative efforts.” — FinCEN

Exemptions and Compliance Timeline

Exemptions to the reporting requirement include transfers resulting from the death of an individual, transfers incident to divorce, and transfers of an easement. Additionally, transactions made directly to individuals are not covered by these rules.

The delayed effective date is intended to allow professionals in the real estate industry ample time to understand the new requirements and implement appropriate compliance measures. FinCEN will provide additional guidance and release the specific Real Estate Report form before the rules come into effect.

Looking Ahead

As the December 2025 deadline approaches, real estate professionals will want to begin reviewing their current practices and preparing for the new reporting obligations. Staying informed about forthcoming guidance from FinCEN will be crucial in ensuring compliance. To learn more, contact Jennifer French, Partner on PBMares’ Construction & Real Estate team.