FinCEN Real Estate Rule 2026: Increased Reporting for Entities & Trusts
Beginning March 1, 2026, certain all-cash residential real estate purchases involving LLCs, corporations, and trusts will trigger new federal reporting requirements.
If you purchase property through an entity for asset protection or estate planning purposes, this rule may apply to you.
Why This Rule Matters
The Financial Crimes Enforcement Network (FinCEN) created this rule to increase transparency in non-financed residential real estate transactions where entities or trusts are used to acquire property.
This is not a ban on LLC or trust ownership — it is a federal reporting requirement.
When Is a Transaction Reportable?
A transfer is reportable if:
The property is residential real estate (1–4 family homes, condos, certain apartment buildings, or vacant land for residential construction)
The purchase is non-financed (no traditional bank loan)
The buyer is an LLC, corporation, partnership, estate, or certain trusts
No exemption applies
There is no monetary threshold, and related-party or gift transfers may still require reporting.
What Must Be Reported?
If applicable, a report must disclose:
The purchasing entity or trust
Beneficial owners (25%+ ownership or substantial control)
Individuals signing for the entity
Seller information
Purchase price and method of payment
The filing deadline is generally within 30 days of closing.Failure to comply may result in significant civil or criminal penalties.
Practical Impact
Beginning in 2026, buyers using LLCs or trusts should expect:
Additional documentation at closing
Beneficial ownership certifications
Increased diligence and possible delays
Estate planning transfers and internal restructurings should also be reviewed in advance.
How This Affects Your Planning
Many of our clients use LLCs and trusts for:
Asset protection
Probate avoidance
Succession planning
Real estate investment structuring
These strategies remain valid — but compliance must now be addressed before closing.
