Overview
- The rule defines reportable transfers as non-financed acquisitions of U.S. residential real property by legal entities or trusts, covering one-to-four family homes, condominiums, cooperatives, and certain residential lots nationwide.
- Financing tests are pivotal: a single buyer with a qualifying bank mortgage is not reportable, but in multi-buyer deals any transferee without such financing triggers reporting for that ownership interest.
- Responsibility follows a cascade starting with the settlement or closing agent, and parties may assign filing duty in advance through a written designation agreement.
- Filers must submit a Real Estate Report through FinCEN’s BSA E-Filing System with details on the property, transferor, transferee entity or trust, individuals representing the transferee, beneficial owners (substantial control or at least 25% ownership, plus specified trust roles), and payment information.
- Reports are due by the later of 30 days after closing or the last day of the following month, records must be retained for five years, narrow exemptions apply, and noncompliance can bring civil and potential criminal penalties.