Even with the delay, we’re preparing for FinCEN
It’s time to talk about a big change coming on the horizon for some all-cash real estate transactions. While you may have heard that new FinCEN rules regarding these types of sales have been delayed from starting on Dec. 1, the new effective start date is now March 1, 2026.
What are these new rules? If you attended our recent workshop on this topic, you already know (Thank you for joining us.), but here is a primer.
These changes will require our teams, as your title and escrow agent, to gather more identified information about the parties involved in non-financed transactions that include legal entities or trusts. That information could include:
● Legal names
● Dates of birth
● Tax identification numbers
● Other identifying information
The U.S. Treasury Department pursued these changes to help combat money laundering and other types of fraud. While we're all for that, our industry, led by the American Land Title Association, is glad to have more time to make sure everything is in line for you, our customers.
Here’s what ALTA said about the additional time: “FinCEN’s decision to postpone its reporting requirements shows recognition of the valid concerns raised by ALTA members and Congress about implementation. There are serious concerns about the immense financial and compliance burdens of this rule on the small businesses that comprise 90% of the title insurance industry. This delay gives ALTA more time to work with FinCEN to revise this costly rule that places significant burdens on title companies.”
In addition to cash transactions, the new reporting requirements will also cover sales that use alternative funding options, such as private loans or seller financing. While this does mean added documentation on our end, our team at Title Resource Network is fully prepared to ensure your transactions remain compliant every step of the way.
You can rest assured that TRN professionals have the support and guidance of our underwriters, ALTA and other trusted resources to help us adapt to these changes. This blog’s purpose is to give our customers and partners a heads-up so you’re aware of what’s ahead. For buyers, sellers, and fellow real estate professionals, these updates shouldn’t significantly change your TRN experience. Our teams will continue to make sure everything is handled smoothly and accurately!
If you have questions about these new guidelines – or anything else going on in title, let us know. Being in the know about everything going on in the industry is one of the many reasons you can trust our offices to deliver for you and your clients! Reach out to us anytime.
