A new FinCEN beneficial owner reporting requirement for “non-financed” transfers of residential properties to trusts or entities will become effective 3/1/26.
Starting March 1, 2026, FinCEN will require reporting for certain non-financed transfers of residential real estate made to trusts or legal entities. This rule is similar in concept to the Corporate Transparency Act (CTA), but it applies specifically to real estate transactions.
Here’s an overview of the official ruling: https://www.fincen.gov/rre
Some questions you might be asking –
What is a “non-financed” transfer?
A transfer where no traditional bank or regulated financial institution provides a loan secured by the property. In simple terms: cash deals or private financing.What properties are covered?
Residential real estate only. Think: single-family homes, condos, townhomes, co-ops, and buildings with 1–4 residential units.What must be filed?
A Real Estate Report with FinCEN, usually within 30–60 days of closing. The report includes property details, the entity or trust receiving the property, and beneficial owner information (name, DOB, address, citizenship, and tax ID).This will not apply to –
- Transfers to revocable (grantor) trusts
- Transfers due to death or divorce
- Non-residential property
We will be watching this carefully over the next few months to determine if this new law will be enforced. Additionally, we will be building systems and processes within Venture Vault to assist clients in filing the reports. Please let us know if you have any questions.
