The Financial Crimes Enforcement Network (FinCEN) is the federal government’s law enforcement effort to help combat illegal money laundering in real estate that sometimes involves drug dealers and terrorists, per the feds.
Here’s a short FinCEN Update to help educate and share with your colleagues and closing attorneys asap for the March 1 enforcement date of FinCEN:
SCR CEO Nick Kremydas’ update on FinCEN
Subject: Rules for Cash Buyers are Changing–What You Need to Know.
REALTORS, if you work with investors or entity buyers (LLCs, Trusts, etc.), your process is about to change.
The federal government is cracking down on money laundering in real estate. Specifically, they want to identify the actual humans—the "Beneficial Owners"—behind the LLCs and trusts buying houses with cash.
While the rule was technically on the books in December, enforcement begins March 1, 2026.
Who does this affect? This applies to Residential properties purchased by an Entity (LLC, Corp, Trust) using Non-Financed funds (Cash or Private Lending). It doesn’t matter if the house is $50,000 or $5 million—if it fits the criteria, it must be reported.
The REALTOR’s Role: Managing Expectations You do not have to file the paperwork—that is the Closing Attorney’s job. However, the attorney is authorized to delay closing if they don’t receive the necessary information.
To prevent a bottleneck or delay at the closing table:
- Set Expectations Early: When writing an offer for a cash LLC, warn the buyer immediately that this data collection is federal law, not an arbitrary attorney policy. Closing attorneys will likely charge higher fees for these types of closings.
- Be Ready to Move Fast: Encourage clients to send their beneficial ownership data (including bank info) to the attorney immediately upon request.
- Watch for SCR Updates: We are adding new disclosure language to the SCR sales agreements to help alert all parties to these federal requirements.
Additional Questions: You can read more about the FinCEN residential real estate rule here or call the SCR Legal Hotline for additional information (803-712-3478).
Posted by: Byron King on 2/11/26 (This information is only accurate as of 2/11/26. You must contact SCR for updates and changes to this information after 2/11/26, as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.