New FinCEN Residential Real Estate Rule

The Financial Crimes Enforcement Network (FinCEN) has issued its final Residential Real Estate Rule (the “RRE Rule”).

The RRE Rule takes effect December 1, 2025.  The Rule requires a closing/settlement agent in a covered transaction to complete and submit a FinCEN real estate report with specific information about the transaction and the parties to the transaction.

A “covered transaction” is a transaction that involves the cash purchase of residential real estate in the U.S. and all territories, where the buyer is a legal entity or applicable trust.

A “cash purchase” includes not only cash sales, but also transactions involving private or seller-financing, and transactions or lines of credit involving a loan by a bank, mortgage broker or mortgage banker or other source that is not required to have an anti-money laundering program.

“Residential real estate” includes existing residential 1-4 unit family properties, co-ops, condominiums, mixed use and apartment buildings and vacant land on which the buyer intends to build a residential structure primarily for occupancy by 1-4 families.

The information which must be reported will include the following: closing date; property description, buyer information, information about persons associated with the buyer (such as authorized signers and beneficial owners), seller information, information regarding the trustee of a trust that is a seller, purchase price, payment information (including bank account details for sourcing funds) and detailed payment information for payments made on behalf of the buyer.

If you have any questions regarding this RRE Rule, please contact Attorney Ann Wehener via 330-563-4186 or her e-mail: awehener@aghattorneys.com