A FinCEN Rule Update

Leegie Parker | DRE 01020534 | Realtor® |Compass | April 2, 2026

A quick update for those purchasing real estate through an entity (LLC/trust) using all cash or private financing.

The FinCEN Residential Real Estate Rule (RRE), went into effect March 1, 2026, requiring mandatory reporting of non-financed residential property transfers involving legal entities, trusts, or LLCs to combat money laundering. (The Financial Crimes Enforcement Network (FinCEN) is a bureau within the United States Department of the Treasury that collects and analyzes information about financial transactions to combat domestic and international money laundering, terrorist financing, and other financial crimes.)

On March 19th, a Texas federal court issued a temporary stay, pausing the rule based on a 4th Amendment ruling. FinCEN officially paused enforcement the next day on March 20th and reporting is not required right now.

However, escrow and title companies are still moving forward with collecting the required information and completing the necessary paperwork needed to comply with the FinCEN rule..

Here is why that matters: Court rulings like this are challenged and overturned on appeal regularly. If the stay is lifted at any point during your escrow and the required paperwork has not been collected and filed, it will cause delays in your closing. No one wants that.

My advice: if you are currently in escrow on a transaction that meets the FinCEN filing requirements, cooperate fully when your escrow or title company asks for this information. It is the smart move and it protects you.

As always, if you have any questions about a deal in process or anything real estate related, I am happy to talk through it with you.

Leegie Parker

📞 310-739-9202

📧 leegie@leegie.com

DRE #01020534