New Cash Real Estate Rules Take Effect March 1, 2026
Is your next transaction covered? Here’s what buyers, sellers, and their attorneys need to know.
Starting March 1, 2026, certain residential real estate transactions will trigger a new federal reporting requirement. The Financial Crimes Enforcement Network (FinCEN) – the federal agency tasked with fighting money laundering and financial crime – has established a Real Estate Report that must be filed for qualifying transactions. If you buy or sell real estate through a legal entity or trust without financing, this rule likely applies to you.
Does This Apply to My Transaction?
A Real Estate Report is required when all four of the following conditions are met:
- The property is residential real estate
- The transfer is non-financed (i.e., an all-cash transaction)
- The property is being transferred to a legal entity or trust
- No applicable exemption applies
In North Carolina, closing attorneys are typically responsible for filing the report – but they will need information from you to do so.
Why Did FinCEN Create This Rule?
Cash real estate transactions – particularly those made through LLCs, corporations, or trusts – have long been a preferred vehicle for money laundering. Before this rule, there was no consistent requirement to identify the real individuals behind these entities in a cash purchase. The new reporting requirement changes that by requiring transparency about who actually owns and controls the buying entity, making it much harder for bad actors to hide behind corporate structures.
What Information Will You Need to Provide?
If your transaction is reportable, your closing attorney will ask for the following information about the beneficial owners and representatives of the transferee entity or trust:
- Full legal name
- Date of birth
- Current residential address
- IRS Tax Identification Number (TIN)
One area that may require more attention is identifying beneficial owners. Under the new rule, a beneficial owner of a transferee entity is defined as someone who (1) exercises substantial control over the entity, or (2) owns at least 25% of the entity’s ownership interests. If your entity has multiple layers of ownership or management, sorting this out before closing will save time.
How Revolution Law Can Help
Navigating a new federal regulation on a tight closing timeline can be stressful. Revolution Law is here to help you determine whether your transaction triggers a reporting requirement, identify the beneficial owners of your entity, and ensure your closing attorney has everything they need – on time.
Contact us today to discuss your transaction. You can also visit FinCEN’s FAQ page at fincen.gov/rre-faqs for additional guidance.
Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit Revolution.law or call 336-333-7907.
The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.