FinCEN Real Estate Reporting FAQ

FinCEN FAQ

1. Is there a fee associated with reporting?

Yes. There is a fee associated with the FinCEN reporting requirement. We are happy to connect individually regarding specifics and how it will appear in the closing process.

2. Is there a minimum purchase price threshold?

No. FinCEN reporting applies regardless of purchase price when the transaction meets the reporting criteria.

3. Who files the FinCEN report?

The reporting company — in these transactions, the settlement company — is responsible for filing the report.

Real estate agents and brokers do not file the report. However, early identification of entity buyers will help ensure smooth and timely closings.

4. Is approval required before the report is filed?

No.

There is no approval process. The reporting company is responsible for submitting the report within the required timeframe in accordance with federal regulations.

5. Will this delay cash closings?

Timing will largely depend on how quickly buyers provide the required documentation. Early communication and preparation will be critical to maintaining smooth settlement timelines.

What Should Agents & Investors Do Now?

• Identify entity buyers early

• Discuss ownership structure during buyer consultations

• Prepare clients to provide documentation promptly

• Work with a settlement partner who understands the regulation

FinCEN reporting does not prohibit transactions. It creates a compliance obligation. Preparation — not panic — is the appropriate response.

Educational Disclaimer

This material is provided for educational purposes only and does not constitute legal advice. Parties should consult qualified legal counsel regarding their specific circumstances.

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