FinCEN Residential Real Estate Rule is on hold—for now
As you may recall, on March 1, 2026, the Residential Real Estate Rule became effective. This anti-money laundering rule required specific professionals involved in real estate closings to submit reports to the Financial Crimes Enforcement Network (FinCEN) regarding certain non-financed transfers of residential real estate to legal entities or trusts. On March 19, 2026, a federal district court in Texas issued a decision vacating the FinCEN rule nationwide. It is unclear whether the Department of Justice or FinCEN plans to appeal the ruling.
In the meantime, FinCEN has released the following statement:
“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.”
So, for now, reporting persons are not currently required to file real estate reports with FinCEN. Stay tuned.
About the writer: Prior to joining Illinois REALTORS® in 2022, Victoria (Vicki) Munson was an attorney in private practice focusing on real estate and estate planning matters. She enjoyed assisting buyers and sellers in bringing their transactions to the closing table. Victoria earned her bachelor’s degree from Western Illinois University and her Juris Doctor from The John Marshall Law School.
