With the Financial Crimes Enforcement Network (FinCEN)’s new residential real estate rule taking effect on December 1, 2025, certain persons involved in real estate closing and settlements—including all title agents—are facing expanded reporting requirements that will impact how transaction information is collected, processed and submitted to comply with federal anti-money laundering efforts. The new rule specifically applies to non-financed residential real estate transactions where the purchaser is a legal entity or a trust. While the changes may feel cumbersome at first, a range of resources and tools are in the works to help you navigate this transition smoothly.
Here’s what you need to know—and how you can start preparing today.
What’s on the Horizon?
To support compliance and ease the learning curve, several key resources are being developed by FinCEN:
- Dedicated webpage: A central hub with tools, FAQs and updates.
- Robust FAQs: Answers to common questions to guide your team.
- Customer-facing brochure: FinCEN-provided document that may be provided to buyers and sellers to explain why information is being collected, how it’s used and how it’s protected.
- Webinar training: Learn what needs to be reported, by whom, when, where and how.
- Sandbox environment: A secure testing space to practice filing reports, including batch submissions.
- Technical instructions: Step-by-step guidance for accurate and efficient reporting.
- Outreach to local land title associations (LTAs): Direct support and engagement at the local level.
Understanding Compliance & Enforcement
- FinCEN’s role: Although they can’t stop a transaction from closing, you are obligated to collect and report the required information. Non-compliance could result in penalties and legal repercussions.
- Reasonable reliance: This principle remains applicable for reporting purposes.
- Beyond current norms: Yes, this may go beyond what you’re used to collecting, but support is available.
- Level playing field: All title companies are expected to comply equally.
Tips for Title Agents
To stay ahead of the curve, consider these proactive steps:
- Start educating.
Begin conversations with real estate agents and customers now. Setting expectations early will make the transition smoother for everyone involved.
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- Review your workflow. Take a close look at your current processes:
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- Where will the new requirements fit in?
- What needs to change?
- Determine who will be responsible for collecting and reporting required information.
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- Revise your collection process. Update your intake forms and procedures to include the additional information required for reporting.
- Collect early. Aim to gather the required data before settlement to avoid last-minute issues or delays.
- Understand the Reasonable Reliance Principle. You are allowed to reasonably rely on information provided by buyers, sellers or their representatives, as long as it appears credible and complete. This means you don’t have to independently verify every detail—just ensure there’s no obvious reason to doubt the provided information.
- Stay informed. Subscribe to FinCEN updates to receive the latest guidance and announcements.
Final Thoughts
Change is never easy, but with the right preparation and resources, title agents can meet these new FinCEN reporting requirements confidently. Start planning now, engage your clients and take advantage of the tools being rolled out to support your success. For more information, contact the Financial Crimes Enforcement Network.