Starting March 1, 2026, a new federal reporting requirement will begin affecting certain Florida residential real estate closings—especially transactions where the buyer is an LLC, corporation, or trust and the deal does not involve a traditional mortgage.
FinCEN’s new “Residential Real Estate Rule” requires certain professionals involved in real estate closings and settlements to submit a Real Estate Report for a defined category of higher-risk residential property transfers. The goal, according to FinCEN, is to increase transparency in residential real estate transactions that can otherwise be exploited for money laundering when ownership is hidden behind entities and trusts—particularly in non-financed purchases that do not pass through lenders with federal monitoring obligations.
What triggers a Real Estate Report?
A Real Estate Report is required when all four of these conditions are met:
- the property is residential real property under the rule,
- the transfer is non-financed,
- the property is transferred to a legal entity or trust (not directly to an individual), and
- no listed exception applies.
“Residential real property” includes not only single-family homes and townhomes, but also condominiums, cooperatives, and certain land purchases where the buyer intends to build a one-to-four-family residence.
“Non-financed” does not just mean “cash.” FinCEN defines it as a transfer that does not involve credit to all transferees that is both secured by the property and provided by a lender that has federal anti-money-laundering program requirements and suspicious activity reporting obligations. This matters because some private or nontraditional financing can still be treated as “non-financed” under the rule.
Importantly, FinCEN states there is no price threshold for the nationwide rule, and gifts can still be reportable if the four-part test is met and no exception applies.
What kinds of transfers are exempt?
FinCEN lists multiple exceptions, including transfers connected to death, divorce, bankruptcy, certain court-supervised transfers, certain transfers to qualified intermediaries for specific like-kind exchanges, and some limited no-consideration transfers to an individual’s own trust (if the conditions are satisfied).
Because exceptions can be technical, consumers and agents should treat this as a “closing-team” question: if the buyer is using an entity/trust and the deal is non-financed, it is safest to assume the closing professional will need to analyze reportability early.
Who files the report?
FinCEN assigns responsibility using a “reporting cascade.” In many Florida transactions, this means the report will often be filed by the closing or settlement agent—or another settlement professional specified in the cascade—rather than by the buyer or the real estate agent.
FinCEN also states that a real estate agent acting purely as an “agent” is not represented in the cascade; however, if an agent performs a settlement function in a particular transaction, the agent could be the reporting person for that deal.
What information might buyers and sellers be asked to provide?
FinCEN’s FAQs explain that the Real Estate Report collects information about the transaction participants and the property, including identifying information about:
- the entity or trust buying the property,
- the beneficial owners behind that entity or trust,
- individuals signing documents on behalf of the entity or trust,
- the seller/transferor, and
- payment details and method.
On payments, FinCEN states the report includes total consideration, whether certain non-AML-regulated credit was involved, and (for each payment made by or on behalf of the entity/trust transferee) the amount, method, and—in some cases—the relevant financial institution and account number, plus payor information if the payor is not the transferee entity/trust.
Will this information become public?
FinCEN states Real Estate Reports are stored in a secure database alongside other Bank Secrecy Act reports, are not accessible to the general public, and are exempt from disclosure under FOIA.
Why Florida residents may hear about this sooner than expected
FinCEN has operated real-estate-focused Geographic Targeting Orders (GTOs) for years. FinCEN has stated the residential real estate GTO program will expire on February 28, 2026, and the nationwide rule begins immediately after, on March 1, 2026.
The most recent GTO materials explicitly list several Florida counties that were part of the GTO coverage, including Broward, Miami-Dade, Palm Beach, Collier, Lee, and others.
The key takeaway is that, after March 1, the reporting analysis for Florida transactions will no longer be “only in certain counties under a GTO” but instead will be the nationwide four-part test (residential + non-financed + entity/trust + no exception).
How to reduce closing delays
FinCEN’s rules can affect how quickly a non-financed entity/trust purchase closes if information is collected late. FinCEN also states incomplete reports are not authorized.
Practical steps that help:
- If you are a buyer planning to purchase through an LLC or trust, tell your REALTOR®, lender (if any), and closing agent early—before documents are drafted.
- Expect to provide identifying information for people behind the entity/trust and for signing individuals, and expect questions about how funds are being paid.
- If you are a seller, ask early whether the buyer is purchasing through an entity/trust and whether the deal is non-financed, so everyone can plan for needed documentation.
For transaction professionals, FinCEN’s FAQs describe how the reporting person can often rely on information provided by others, but beneficial ownership reporting has a written certification expectation; this is one reason closing teams may introduce new certifications or information requests into the workflow.
“A clear understanding of the new FinCEN rules will help avoid surprises at the closing table. Early communication is key.”— Bonita Springs-Estero REALTORS®
A note on litigation
Industry lawsuits have challenged the rule in federal court, including litigation involving Fidelity National Financial, Inc. and Flowers Title Companies, LLC. As of early 2026 reporting, those challenges were still active in the courts, while FinCEN continues to list March 1, 2026 as the reporting start date on its official rule page.
For Florida consumers and REALTORS®, the practical approach is to prepare closing processes as though the rule will go live March 1, while staying alert to any official updates.
This is the article we made last year with a similar subject: FinCEN Delays - New Real Estate Reporting Rule