Beginning March 1, a new rule from the Financial Crimes Enforcement Network (FinCEN) went into effect that will impact certain residential real estate transactions across the country.

If you work with entity buyers  or if you’re purchasing property through an LLC, corporation, partnership, or trust, this is important information to understand.

What Is Changing?

Under this new rule, additional federal reporting requirements may apply when:

• A residential property is purchased without traditional financing (all-cash or non-bank financed)
• The buyer is a legal entity, such as:
– An LLC
– A corporation
– A partnership
– A trust

These reports are designed to increase transparency and help prevent money laundering in real estate.

What Is Beneficial Ownership Reporting?

Beneficial ownership reporting involves identifying the individuals who ultimately own or control a legal entity.

In qualifying transactions, certain information may need to be disclosed, including:

• Individuals who own a specified percentage of the entity
• Individuals who exercise substantial control over the entity
• Identifying information for verification purposes

What Does This Mean for Agents?

If you represent buyers or sellers in entity transactions, here is what you should know:

• All-cash purchases made by entities may require detailed beneficial ownership reporting
• Additional information will be collected at closing
• Timing and accuracy will matter
• Noncompliance can carry serious penalties

Because this involves federal reporting, accuracy and proper documentation are critical. Incomplete or incorrect information could delay closings or create compliance risks.

What Does This Mean for Buyers and Sellers?

If you are purchasing residential property through an entity without traditional financing, be prepared to:

• Provide additional documentation
• Disclose beneficial ownership information
• Respond promptly to information requests

Sellers should also understand that transactions involving entity buyers may require extra steps at closing.

Early communication and preparation will be key to keeping deals on track.

How We Are Preparing

The good news is that you do not have to navigate this alone.

Our team is already prepared for these changes. We have:

• Updated our internal processes
• Trained our staff
• Implemented systems to collect and verify required information
• Ensured our closings remain smooth, compliant, and a positive experience for you and your clients

Our goal is to minimize disruption while maintaining full compliance.

What You Should Do Now

If you have an upcoming entity purchase or one currently in your pipeline consider taking these steps:

1. Confirm whether the transaction involves all-cash or nontraditional financing.
2. Verify the buyer’s entity structure early in the process.
3. Communicate with your closing team about potential reporting requirements.
4. Encourage clients to gather ownership documentation in advance.

Being proactive can help prevent delays and last-minute issues. If you have any questions, reach out to our attorneys. They are available 7 days a week at attorneys@millertitlelaw.com.