FinCEN Residential Real Estate Reporting Rule
FinCEN’s Residential Real Estate Reporting Rule (RRE), which took effect March 1, 2026, has been vacated by a federal district court. FinCEN has issued guidance confirming that reporting is not currently required, and reporting persons are not subject to liability for failing to file while the court’s order remains in effect, and no retroactive filing will be required if the order is overturned. FinCEN has filed a notice of appeal, and litigation continues in other jurisdictions.
FinCEN Appeals Court Ruling; Publishes New FAQs
05/21/2026
FinCEN has filed a notice of appeal of the Eastern District of Texas ruling in Flowers Title Companies, LLC v. Bessent that vacated the RRE rule nationwide. FinCEN has also released three new FAQs confirming reporting is not currently required, there's no liability for non-filing, and no retroactive filing will be required if the vacatur is overturned. Separately, litigation continues in other jurisdictions — Fidelity has asked the U.S. Court of Appeals to review a Middle District of Florida ruling that upheld FinCEN's authority under the Bank Secrecy Act.
U.S. District Court Vacates Residential Reporting Rule & FinCEN Issues Guidance Following Court Ruling
03/20/2026
FinCEN has issued guidance confirming that, following the federal court’s decision to vacate the Residential Real Estate Reporting Rule (RRE), reporting is not currently required:
“In light of a federal court decision, reporting persons are not currently required to file real estate reports with FinCEN and are not subject to liability if they fail to do so while the order remains in force.”
FinCEN has acknowledged the ruling and is not requiring compliance at this time. However, the agency has not addressed next steps, and future action, including appeal or revised rulemaking, remains possible.
Background: On March 19, a federal district court in Texas vacated and remanded the rule, which had taken effect March 1, 2026.
Read more:
Prior History of the Reporting Rule
FinCEN announced on September 30, 2025 that the rule set to go into effect on Dec. 1 would be postponed until March 1, 2026. Read more here »
The Real Estate Report will be a new form that certain real estate professionals involved in certain real estate closings and settlements must file with FinCEN for certain transfers of residential real estate.
Read more from TLTA's Breaking News »
Read TLTA's Comment Letter to TREC Broker Lawyer Committee »
Read TLTA's Comment Letter to FinCEN »
TLTA's Comments in Response to Initial Rule Proposal »
FinCEN Real Estate Reporting Resource Webpage »
Final Rule Reference and Resources
News
09/30/2025
TLTA Breaking News
04/18/2025
Pacific Legal Foundation
08/28/2024
The Wall Street Journal
08/28/2024
TLTA Breaking News
FinCEN New Reporting Requirements Proposal Background
TLTA's Comments in Response to Initial Rule Proposal
TLTA submitted comments to FinCEN on behalf of the Texas title insurance industry. Access TLTA's submitted letter
here.
FinCEN Official Statement Regarding the Agency's Intentions
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking to combat and deter money laundering by foreign “Politically Exposed Persons” (PEPs) in the U.S. residential real estate sector by increasing the ability for federal identification and monitoring of individuals in certain transactions. The proposed rule would require certain professionals involved in real estate closings and settlements to report information to FinCEN about non-financed transfers of residential real estate to legal entities or trusts. See press release linked below for more info from FinCEN.
What's in the proposal?
FinCEN is proposing reporting and compliance requirements that would have a significant impact on you and your business when handling cash transactions. See below for analysis of the proposed rule and recommended changes as provided by TLTA and ALTA.
Industry Response
Reference and Order Details
News
TLTA coverage and more information about this issue
04/19/2024
The Wall Street Journal
03/12/2024
National Mortgage Professional
03/12/2024
National Mortgage News
02/23/2024
Dateline Austin
02/08/2024
Dateline Austin
Questions or Comments?
If you have questions, please send them to
Aaron Day or call Aaron at 512.810.8800, thank you.
Proposed Anti-Money Laundering Regulations for Real Estate Transactions
On Dec. 8, 2021, in anticipation of issuing the above reporting requirements, FinCEN issued a notice of proposed rulemaking to solicit public comment on a potential rulemaking to address the vulnerability of the U.S. real estate market to money laundering and other illicit activity. More about the preliminary period below.
News
02/23/2022
Dateline Austin
02/10/2022
Dateline Austin
12/22/2021
Dateline Austin
12/08/2021
Dateline Austin
Reference