Starting March 1, 2026, a new federal FinCEN reporting requirement goes into effect for certain real estate transfers.
Here’s what you need to know: if residential real estate is transferred without financing and the buyer is an LLC, corporation, partnership, or certain trusts, a FinCEN Real Estate Report must be filed with the U.S. Treasury. This applies to both full cash closings and gift or no-consideration transfers. This federal rule is said to be aimed at combating money laundering associated with criminals hiding ill-gotten gains inside LLCs through real estate holdings. However, even the law-abiding among us must comply with the rule. You may remember that a prior broader FinCEN reporting program was short-lived, but this one appears to be here to stay.
What are the big points for you?
- Most real estate transfers of residential property to an entity, unless it involves financing by a financial institution, require reporting
- Certain grantor-trust transfers are exempt (such as placing your home into your own revocable living trust)
- Transfers due to death, divorce, or court supervision are generally exempt
- Reports are due within roughly 30–60 days after the transfer
- Transfers that were completed prior to March 1, 2026, do not require reporting
Our Position
We believe that, in most cases, it is still wise to own investment property in an LLC for asset protection and organizational clarity. That has not changed. What has changed is the addition of an extra federal reporting burden attached to certain transfers. The good news is that Bryant & O’Connor Law Firm is adapting internal procedures and intake systems so that we can handle these filings for you when you transfer real estate to an entity. When you hire us to transfer real estate into an entity, we will determine if reporting is required, walk you through the process, gather the necessary information, and make sure the reporting is done correctly and on time.