FinCEN

FinCEN Residential Real Estate Reporting Rule

FinCEN Residential Real Estate Reporting Rule (Effective March 1, 2026)

In under 30 minutes, get educated on how the FinCEN Residential Real Estate Reporting Rule applies to New York closings — including what’s reportable, how the reporting cascade works, and the practical steps needed before closing.

Watch the recorded webinar below and/or download the slide deck. This page will continue to be updated with forms and guidance as implementation evolves.

Effective March 1, 2026, FinCEN’s Residential Real Estate Reporting Rule (31 C.F.R. Part 1031) requires federal reporting for certain non-financed residential transfers involving entities or trusts.

This replaces the limited GTO framework. The rule is nationwide and permanent.

If a transaction is reportable, detailed information about the buyer, seller, beneficial owners, and payment sources must be filed with FinCEN.

When Is a Transaction Reportable?

Generally, if:

• The property is residential (including co-ops)
• A buyer is an entity or trust
• The transfer is non-financed
• No exemption applies

Exemptions are narrow and fact-specific.

What Must Be Collected?

If reportable, the reporting person must collect and report:

• Buyer and seller information
• Beneficial ownership information
• Property details
• Payment and account information

This includes dates of birth, residential addresses, and taxpayer identification numbers.

Early identification is critical.

Reporting Responsibility in New York

The rule establishes a reporting cascade to determine the reporting person.

In many New York transactions, the person preparing the statement of receipts and disbursements will sit highest in the cascade.

Responsibility may be shifted by a valid, per-transaction Designation Agreement.

Designation

Thoroughbred will accept designation for insured transactions, subject to:

• A written Designation Agreement
• Complete and timely submission of required information

Our goal is simple: provide clear, usable documents that help attorneys, agents, and settlement professionals navigate reporting responsibilities with confidence. We’ll continue updating this page as new guidance, forms, and best practices emerge.