UPDATE: FinCEN Residential Real Estate Rule Reporting Suspended

By Kristine A. Hosman and L. Benton Alexander, Jr.

Editor's Note: This article has been updated to reflect recent legal developments impacting the FinCEN Residential Real Estate Rule.

The Residential Real Estate Rule (“RRE”) issued by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”), is currently suspended and not in effect. The RRE, which became effective on March 1, 2026, created a reporting requirement for non-financed transfers of residential real property to entities or trusts. 

However, on March 19, 2026, a federal court in Texas issued a ruling vacating the RRE nationwide. 

In response, FinCEN issued the following alert, “In light of a federal court decision, reporting persons are not currently required to file real estate reports with FinCEN and are not subject to liability if they fail to do so while the order remains in force.” 

Accordingly, compliance with the RRE is not currently required. 

Jones Foster will continue to monitor developments and provide updates as appropriate. If you have any questions regarding the FinCEN Residential Real Estate Rule or its reporting requirements, please contact your Jones Foster real estate attorney.

The following article was published prior to the federal court's March 19, 2026, order vacating the rule.

FinCEN Residential Real Estate Rule Reporting

What is the FinCEN Residential Real Estate Rule?

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) has enacted the Residential Real Estate Rule (“RRE”). The RRE requires reports for non-financed transfers of residential real property to entities or trusts. Its purpose is to increase transparency in the U.S. residential real estate sector and to combat money laundering.

Residential real property under the RRE includes structures designed for occupancy by one to four families, land intended for such structures, units within larger structures designed for one to four families, and shares in a cooperative housing corporation whose property is located in the United States. Accordingly, residential real property includes single-family houses, townhouses, condominiums, and cooperatives.

“Non-financed transfers” are those transfers that do not involve an extension of credit secured by the property and provided by a financial institution required to maintain an anti-money laundering program and report suspicious transactions.

Certain transfers are excluded from reporting, including easement grants, transfers due to death, divorce-related transfers, bankruptcy estate transfers, court-supervised transfers, and transfers to qualified intermediaries under tax law.

Who is responsible for reporting and what does it entail?

The RRE establishes a hierarchy for reporting, and title companies are generally in the primary reporting position because they commonly act as closing or settlement agents and prepare closing statements. The reporting requirements cover the reporting person, transferee entities or trusts, transferors, property details, and payment information. Reports must be filed electronically with FinCEN by the later of the final day of the month following closing or 30 calendar days after the closing date.

What action do you need to take?

If your transaction involves Jones Foster as the title agent and falls under the RRE, we will coordinate all reporting requirements. If your transaction is subject to reporting, we will contact you for the necessary information, and a FinCEN reporting fee will appear on your closing statement.

The information provided in this article does not, and is not intended to, constitute legal advice; it is for general informational purposes only. No reader of this article should act or refrain from acting on the basis of this information without first seeking legal advice from counsel in the relevant jurisdiction to ensure the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.