Starting March 1, 2026, a new nationwide rule from Financial Crimes Enforcement Network changes how many residential real estate transactions are reported to the federal government. If you are an investor buying in an LLC or trust, or a private or hard money lender funding those deals, this rule is going to touch your transactions more often than you may expect. The key risk is not penalties. It is delays, deal friction, and misunderstanding who triggers reporting and why.
The rule targets a very specific category of transactions: residential property, bought by a legal entity or trust, when the deal is considered non-financed. That last phrase is where many investors and lenders get tripped up. Non-financed does not simply mean all cash. Many private and hard money loans still fall into the non-financed bucket because the lender is not subject to federal anti-money laundering programs and Suspicious Activity Report requirements. In those cases, the transaction is treated much like a cash deal for reporting purposes.
When all three elements line up, a Real Estate Report must be filed with FinCEN after closing. The report is confidential and not public record. Buyers are not filing it themselves, but they are responsible for providing the information that makes filing possible. That means identifying the real people behind LLCs, partnerships, layered entities, and certain trusts. Expect requests for ownership percentages, control persons, government ID, and details about how funds moved to the closing table.
For investors, the practical impact is timing. Entity structures that were once “set it and forget it” now need to be organized and documented well before closing. Complex ownership stacks slow deals down if they are addressed at the eleventh hour. Anyone still selling entity ownership as a way to stay invisible in residential deals is simply out of date.
For private and hard money lenders, this rule quietly changes your role. Your loan does not automatically shield a transaction from reporting. Settlement agents will increasingly ask whether your company is subject to AML and SAR obligations. If the answer is no, the deal likely still triggers reporting. Lenders that can quickly clarify their status and coordinate early with settlement providers will close faster. Those that cannot will create uncertainty for borrowers and title companies alike.
One of the clearest and most practical explanations of how this rule works, who files, what information is required, and how timing plays out is laid out in this dedicated FinCEN real estate reporting resource. It walks through real-world scenarios investors and lenders actually face, rather than just repeating regulatory language.
The takeaway is simple. This rule is not about stopping deals. It is about transparency. Investors and hard money lenders who adapt early, understand when reporting is triggered, and prepare documentation in advance will avoid unnecessary delays and keep their pipelines moving. Those who ignore it will feel the impact at the closing table.