IMPORTANT REAL ESTATE RULING COMING UP!
THE FINCEN ANTI MONEY LAUNDERING RULING FOR
RESIDENTIAL REAL ESTATE TRANSACTIONS
This month, in lieu of my standard escrow related questions and answers, it is important to bring my readers up to date on a defining government ruling that is bringing anxiety to our real estate and escrow industry.
The Financial Crimes Enforcement Network (FinCEN) pushed out an Anti Money Laundering Ruling for Residential Real Estate Transaction (AML for RRET). A brief summarization of this Ruling is as follows:
Transfer of ownership transactions, whether with or without purchase price, must be reported to FinCEN if they meet the following criteria:
- Buyer/Transferee is a corporate entity or a Trust
- This is a cash transaction with no loan by a financial institution that is already subject to the AML reporting
- The property is residential 1-4 family units or vacant land projected to be developed for residences
If a transaction falls under these 3 parameters, then we have to advise our Buyer/Transferee and Seller/Transferor clients to provide their detailed personal information to the government or we won’t be able to close escrow.
The starting date for reporting under this Ruling is March 1, 2026 and it is a NATIONWIDE ruling affecting all residential real estate sales and transfers of ownership.
Of course, there is much more than my very brief 3-line summary here. My video can give you further information, at this link:
Real estate agents beware! You are our front line in this Ruling. Which offer you and your client submits or accepts needs to be considered as to whether the transaction will need to be reported to the government!
Formal government Information on this Ruling can be accessed at this location: https://www.fincen.gov/rre
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You Have Questions? We Have Answers!
Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
Escrow is my FOREMOST language!
Advance Disclosure:
The opinions expressed in this blog are solely the author’s.
Your comments and viewpoints are always welcome.
Info @ VivaEscrow.com