If you’ve ever bought investment property through an LLC, or moved real estate into a trust as part of your estate plan, you’ve probably done it without filing anything with the federal government beyond the usual deed recording. As of March 1, 2026, that may no longer be the case.
A new rule from the Financial Crimes Enforcement Network (FinCEN), part of the U.S. Treasury, now requires certain professionals involved in real estate closings to file a report when residential property is transferred to a legal entity or trust without traditional financing. The rule is called the Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule, and it’s already in effect.
Here’s what that means in plain English.
Why Does This Rule Exist?
All-cash real estate purchases made through anonymous LLCs and trusts have long been a known vehicle for money laundering. Someone moves dirty money into a property, then sells it, and suddenly the money is clean. FinCEN created this rule specifically to close that loophole by requiring disclosure of who is actually behind these transactions.
If you’re a regular person buying a house with a mortgage, this rule almost certainly does not affect you. It’s targeted at non-financed transfers, cash deals, seller financing, and the like, where the buyer is a business entity or trust.
So When Does a Report Actually Have to Be Filed?
Three things have to be true at the same time:
The property is residential. We’re talking single-family homes, townhouses, condos, co-ops, and even vacant land that’s intended for residential construction. Commercial property is outside the rule.
The transfer is not financed through a regulated lender. If someone is getting a mortgage from a bank or credit union, institutions that already have their own anti-money laundering obligations, the transaction is generally not reportable. The rule is aimed at all-cash deals and seller-financed transactions.
The buyer or recipient is an entity or trust. LLCs, corporations, partnerships, estates, and all types of trusts are covered. If the property is going directly to an individual, the rule does not apply.
All three have to be present. If even one is missing, no report is required.
What About Estate Planning Transfers?
This is where it gets interesting for a lot of our clients, because estate planning often involves moving property around without any money changing hands.
Revocable trusts: The most common estate planning move, transferring your home into your own revocable trust, is generally exempt from this rule. No money is changing hands; you’re just re-titling property you already own. The exemption applies when there’s no consideration and you (or you and your spouse) are the settlor or grantor of the trust.
Irrevocable trusts: The same logic applies here. If you’re transferring your own property into an irrevocable trust as part of your estate or Medicaid planning, and nothing is being paid for it, that transfer is also generally exempt under the same no-consideration rule.
LLCs are a different story. There is no equivalent exemption for transfers to LLCs. Even if no money changes hands, moving property into an LLC may trigger a reporting obligation. If you’re planning to do this, talk to your attorney before the transfer happens.
Other transfers that are exempt regardless of structure include those resulting from a death (by will, trust, or operation of law), divorce decrees, court orders, bankruptcy proceedings, and 1031 like-kind exchanges.
Who Has to File the Report?
FinCEN assigns filing responsibility based on who is involved in the closing. The rule works on a cascade, the first person on a priority list who participates in the transaction becomes the “reporting person.” That list starts with the closing or settlement agent and works down through the person who prepares the settlement statement, the person who records the deed, the title insurer, and so on.
In Florida, attorneys regularly handle closings, which means law firms can end up as the designated reporting person. Parties can also enter into a written Designation Agreement to shift that responsibility to someone else in the transaction, but it has to be in writing, specific to that transaction, and kept for at least five years.
What Does the Report Include?
When a report is required, it has to identify the property, the seller, and the buyer entity or trust, including the beneficial owners behind it. That means names, dates of birth, addresses, citizenship status, and Social Security or taxpayer ID numbers for the actual humans who own or control the entity. The report also covers the purchase price, how it was paid, and relevant account or fund details.
Reports are filed through FinCEN’s BSA E-Filing System. The deadline is 30 days after closing, or the last day of the month following the month of closing, whichever is later.
The Practical Takeaway
If you’re transferring property into your own revocable or irrevocable trust for estate planning purposes with no money changing hands, you’re likely in the clear. If you’re buying residential real estate in cash through an LLC or trust, or transferring property into an LLC for any reason, this rule is probably relevant to your transaction.
The time to sort this out is before closing, not after. If you have a real estate transaction coming up involving an entity or trust, or you’re thinking about restructuring how you hold property, reach out to our office. We’re already working through these issues with clients and can help you figure out where you stand.