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Shaking Hands

FinCEN Real Estate Reporting

The new FinCEN Anti-Money Laundering (AML) rule takes effect on March 1, 2026.  FinCEN reporting is a routine federal compliance step for certain entity or trust transactions. The fee is generally a buyer cost, negotiable by contract, and lower when handled early.

Buyer Frequently Asked Questions

 

1. What is FinCEN and why does this apply to my transaction?

FinCEN (Financial Crimes Enforcement Network) is a bureau of the U.S. Department of the Treasury that combats money laundering and financial crime.

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Federal law requires certain non-financed residential real estate transactions involving entities or trusts to be reported. This is a standard compliance requirement, not an accusation or investigation.

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2. Does this mean something is wrong with my transaction?

No. Most reported transactions are completely legitimate.


FinCEN reporting is informational only and does not mean:

  • You are under investigation

  • There is a title problem

  • There is a tax issue

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3. Why does my transaction require FinCEN reporting?

Your transaction meets federal reporting criteria because:

  • The buyer is a legal entity or trust, and

  • The purchase is non-financed (not funded by a federally regulated bank)

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This is exactly the type of transaction FinCEN identifies as higher-risk due to ownership opacity.

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4. I’m paying cash. Does every cash deal get reported?

No.

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Under the March 1, 2026 rule:

  • Individuals buying in their own name are generally exempt

  • Reporting is focused on entities and trusts purchasing without a bank loan

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Cash alone does not trigger reporting — buyer type matters.

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5. Who is collecting my information and filing the report?

ClosePoint USA LLC has partnered with its title insurance underwriter (Stewart Title or First American Title Insurance Company) to manage the FinCEN reporting process.

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As part of this process:

  • The underwriter (or its affiliate) will contact the buyer and seller

  • Required information will be collected securely

  • The FinCEN Real Estate Report will be filed electronically with the U.S. Treasury

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6. Is there a fee for FinCEN reporting? Who pays it?

Yes.

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  • The fee to process and file a FinCEN report generally ranges from $300.00 to $400.00

  • The Buyer is typically responsible for this fee

  • The fee can be negotiated between Buyer and Seller in the purchase contract, but it is most commonly charged to the Buyer

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This fee covers data collection, validation, certification, and federal filing.

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7. Can the fee be reduced?

Yes — timing matters.

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  • Paying early in the transaction (before closing) typically results in lower fees

  • Paying at closing may result in higher fees due to:

    • Expedited processing

    • Time-sensitive federal filing requirements

    • Rush handling to meet FinCEN deadlines

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Early payment allows the reporting process to be handled more efficiently.

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8. What information will I be asked to provide?

Depending on the buyer structure, this may include:

  • Entity or trust information

  • Identification of individuals who own or control the entity

  • Government-issued identification

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Only information required by federal law is collected.

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9. Why do you need information about owners or managers?

When a company or trust purchases property, federal law requires identification of beneficial owners — individuals who:

  • Own 25% or more, or

  • Exercise substantial control

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This helps FinCEN understand who is behind the transaction.

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10. Is my information shared publicly or recorded with the deed?

No.

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FinCEN reports:

  • Are not public records

  • Are not recorded in county land records

  • Are not shared with agents, sellers, or lenders

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11. How long is this information kept?

Federal law requires that FinCEN reporting records be retained for five (5) years.

ClosePoint and its underwriter will retain confirmation of filing as required by law.

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12. Does this affect my closing or ownership?

No.

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FinCEN reporting:

  • Does not affect title insurance

  • Does not impact ownership

  • Does not delay closing, provided information is supplied timely

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13. Is this a tax filing or related to the IRS?

No.

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This is not a tax filing and is separate from the IRS.

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14. Can I opt out of providing this information or paying the fee?

No.

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When a transaction meets federal reporting requirements:

  • Reporting is mandatory

  • The required fee must be paid to complete compliance

  • Failure to comply may delay or prevent closing

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15. Who can I speak with if I have questions?

You may:

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Buyer & Seller Forms

 

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