FinCEN Extends Deadline for Implementation of Residential Real Estate Reporting Rule to March 1, 2026

On September 30, 2025, the Financial Crimes Enforcement Network (FinCEN) announced a 90-day extension of the implementation date for its Residential Real Estate Rule.

Originally set to take effect on December 1, 2025, the new effective date is March 1, 2026. This delay gives reporting professionals — including closing attorneys, title agents, and settlement professionals — more time to establish the internal systems and procedures necessary to comply.

Why FinCEN Issued the Extension

FinCEN formally issued the delay through an Exemptive Relief Order, which temporarily suspends enforcement of the rule while keeping it in place. The Order emphasizes that the rule itself is not withdrawn or modified; rather, compliance obligations are simply deferred until March 1, 2026.

According to the Treasury Department, the 90-day extension reflects the Administration’s broader policy of reducing unnecessary regulatory burdens on U.S. businesses while still advancing the national security goals behind the rule. Treasury Secretary Scott Bessent approved the extension to allow sufficient time for the real estate industry to implement compliant policies, train staff, and update reporting workflows.

Background on the Residential Real Estate Rule

FinCEN adopted the Residential Real Estate Rule on August 29, 2024, under the authority of the Bank Secrecy Act (31 U.S.C. § 5318) and implementing regulations to be published at 31 CFR § 1031.320. The Rule requires “reporting persons” — such as settlement agents, attorneys, title insurers, or other closing professionals — to file a report with FinCEN whenever there is a non-financed transfer of residential real property to a legal entity or trust.

If a transaction is reportable, the reporting person must file a report with FinCEN that identifies the transaction, providing information about the property, the seller, and the transferee entity or transferee trust.  That report must also identify the individual beneficial owners of the transferee, applying the beneficial ownership rules FinCEN previously developed for reporting under the Corporate Transparency Act.

Focus on Non-Financed Transfers

The reporting requirement specifically targets non-financed transactions, where the purchaser — or transferee — is not an individual but rather a company, partnership, or trust.

The Rule defines “non-financed” transactions as those in which there is no financing secured by the transferred property extended by a bank or other regulated financial institution. Since banks and mortgage lenders are already subject to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) requirements administered by FinCEN, FinCEN has determined that financed transactions are less susceptible to abuse and are therefore not reportable under the Rule.

FinCEN’s research indicates that these non-financed, all-cash purchases are vulnerable to misuse by illicit actors, including:

• Money launderers seeking to conceal criminal proceeds
• Organized crime networks and drug traffickers
• Corrupt foreign officials and oligarchs attempting to hide assets in U.S. real estate

Because non-financed transactions bypass the scrutiny that would be applied by financial institutions with AML/CFT obligations, they have the potential to escape AML/CFT oversight — creating blind spots in law enforcement’s ability to trace illicit funds.

What the Extension Means for Reporting Persons

FinCEN’s Exemptive Relief Order provides a temporary safe harbor, as reporting persons are not required to file reports for otherwise reportable non-financed transactions that close prior to March 1, 2026.

This means that for the next few months, industry professionals can continue preparing without the immediate risk of non-compliance. However, FinCEN has made it clear that no further delays are expected — firms should use this time to finalize training, update compliance software, and establish internal controls for reporting.

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