New FinCEN Rules Are Coming: What Cash Buyers Using LLCs or Trusts Need to Know

If you’re planning to buy real estate using cash, an LLC, or a trust, there’s an important change coming that you should be aware of.

Starting March 1, 2026, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) is implementing new nationwide reporting requirements designed to curb money laundering in residential real estate. While these rules won’t affect every transaction, they will impact many all-cash purchases, especially those involving entities or trusts.

Why This Is Happening

For years, regulators have flagged residential real estate as an easy place to hide illicit funds, particularly when properties are purchased with cash and titled in LLCs or trusts. FinCEN’s new rule is aimed at increasing transparency by identifying who is really behind the purchase and where the money is coming from.

What Transactions Are Affected

These new reporting requirements generally apply when:

• The property is residential real estate
• The purchase is non-financed (all cash or no traditional bank loan)
• The buyer is an LLC, corporation, partnership, or trust (not an individual)

If your transaction checks those boxes, expect additional federal reporting at closing.

What Buyers Should Expect

If you’re buying through an LLC or trust, you should be prepared to provide detailed information, including:

• The beneficial owners of the LLC or trust (the real people who own or control it)
• Identifying information such as names, addresses, and dates of birth
• Information about the source of funds used for the purchase

This information is reported by the closing professional (such as escrow, title, or a closing attorney) directly to FinCEN. It is not optional, and it must be completed accurately.

What This Means for Buyers

For legitimate buyers, this is not meant to be a deterrent, but it is a shift. Transactions may require:

• More documentation
• Earlier preparation
• Clear communication among buyers, advisors, and closing teams

If you’re accustomed to streamlined cash purchases using entities, expect a more formalized process going forward.

The Bottom Line

This is a heads-up. These rules are about transparency, not judgment. But they do mean that privacy through anonymity is no longer the default in certain real estate transactions.

If you’re considering a cash purchase using an LLC or trust — especially in a high-value market — it’s wise to plan ahead, talk with your legal and tax advisors early, and understand what will be required well before closing.

Don’t be surprised mid-transaction. If you have questions about how this may affect a future purchase or sale, I’m happy to talk it through.