FinCEN’s New Cash Real Estate Rule: What Changes in 2026

 
 

A New Federal Requirement Is Coming to Certain Cash Closings—Here’s What That Means

If you buy real estate through an LLC, other entity type, or trust—or regularly sell to buyers who do—there’s an important change coming to how certain cash transactions are handled.                                                                                                                              

Beginning with closings on or after March 1, 2026, federal regulation will require title companies and settlement agents to file a new residential real estate report with FinCEN for certain all-cash residential transactions.

 This regulation isn’t optional.

It isn’t something title companies can waive or “work around.”

Like many regulatory changes, this one affects different parts of the transaction in different ways. Title companies carry the compliance obligation, while buyers, sellers, and Realtors play an important role by providing required information early and accurately.

 What’s Actually Changing?

For many years, cash purchases—especially those involving entities—required relatively little disclosure.

 That’s changing.

 Under the new rule, title companies will be required by law to obtain and verify information that buyers, sellers, and investors may not have historically been asked to provide, including:

  • The entities involved in the transaction

  • Who ultimately owns or controls those entities

  • How funds are being transferred

 Importantly:

·         Buyers do not file the report

·         Sellers do not file the report

·         Realtors do not file the report

·         Title Companies DO file the report

 But the title company cannot complete the transaction without receiving the required information. If it isn’t provided, the report cannot be filed—and the closing cannot proceed.

 Why This Feels Different

For some investors and sellers, this may feel intrusive—not because anything is wrong, but because this level of disclosure simply wasn’t required before.

 That’s an understandable reaction—and it’s one we expect during this transition.

 It’s also the reality of the new law.

 Title companies are not asking these questions by choice or preference. They are asking them because federal law now requires them to do so.

 Will This Affect the Closing Timeline?

It can—if the information comes in late.

 Closings are most likely to slow down when:

·         Entity ownership information is incomplete

·         Beneficial owner details are withheld or delayed

·         Parties assume disclosure can wait until the end

 The work hasn’t increased at the closing table—it has moved earlier in the process.

 What This Means for Buyers, Sellers, and Realtors

For most people, this doesn’t change who can buy or sell, or how cash deals work.

It does change expectations.

 Buyers using entities should expect more questions earlier

 Sellers accepting cash offers from entities should anticipate additional disclosures

 Realtors can help by setting expectations up front and encouraging early cooperation

 Understanding that these requests are legally required—not optional—helps keep transactions moving.

 

What This Means for Title Companies

Title companies are legally responsible for:

·         Collecting required information

·         Verifying it for completion

·         Filing the FinCEN report correctly and on time

 Because the reporting obligation carries real consequences, title companies will have less flexibility when the required information is incomplete or delayed.

 This isn’t about discretion—it’s about compliance.

 How TechneTitle Is Approaching This Change

At TechneTitle, compliance with this new federal requirement isn’t optional—and it isn’t something we’re treating as an afterthought. We have been researching, learning, and teaching about it for months. We are actively building the systems, workflows, and intake processes necessary to collect, verify, and report the required information accurately and securely.

 That means asking questions earlier in the transaction and being clear about what information is legally required to move forward. If you regularly use a different title company, ask them how they’re implementing their strategy. If they can’t tell you, that should tell you something.

 Our goal is to make this transition as smooth as possible for buyers, sellers, and Realtors by setting expectations upfront, protecting sensitive information, and integrating these requirements into the process in a way that minimizes disruption—while still meeting the letter and spirit of the law. Our focus is on preparation, clarity, and consistency—so these requirements feel routine, not reactive.

 We’d rather ask the right questions early than create last-minute stress later.

How to Keep Transactions Moving Smoothly

This new requirement works best when everyone knows what to expect early in the process.

A few simple steps can make a meaningful difference:

·         Buyers using entities should be prepared to provide ownership and control information promptly

·         Sellers accepting cash offers from entities should anticipate additional disclosures

·         Realtors can help by setting expectations early and encouraging timely cooperation

 These steps don’t change who can buy or sell—they simply help ensure required reporting is completed without last-minute delays.

 Final Takeaway

The FinCEN Residential Real Estate Reporting Rule reflects a shift toward greater transparency in certain cash transactions involving entities.

 Title companies are required by law to collect and report information that may not have been requested in the past. When buyers, sellers, and Realtors understand that reality early—and build it into the transaction timeline—the process remains predictable, efficient, and far less stressful for everyone involved.