FREQUENTLY
ASKED QUESTIONS

What is the Real Estate Report? The Real Estate Report is a mandatory federal filing required by the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. It applies to certain non-financed transfers of residential real property to legal entities and trusts, under FinCEN's Residential Real Estate Rule (31 CFR § 1031.320).

Why is FinCEN collecting this information? The rule is designed to increase transparency in the U.S. residential real estate market and combat money laundering. Many people use entities or trusts to purchase property for legitimate reasons, but those structures can also be used by illicit actors to hide ownership. The Real Estate Report helps law enforcement identify the beneficial owners behind these transactions.

Who can access information in a Real Estate Report? Reports are stored in a secure, non-public FinCEN database. Access is limited to authorized federal and state law enforcement and to financial institutions complying with customer due diligence requirements. Real Estate Reports are not subject to public disclosure under FOIA.

What is a "reportable transfer"? A transfer must be reported if it meets all four of these conditions:

1. It involves residential real property located in the U.S.
2. It is a non-financed transfer (such as all-cash, seller financing, or private financing).
3. The property is transferred to a legal entity or trust.
4. No specific regulatory exemption applies.

What counts as "residential real property"? Residential real property includes single-family homes, townhouses, condominiums, cooperative housing units (including shares in a cooperative housing corporation), and buildings designed principally for occupancy by one to four families. It also includes vacant or unimproved land where the buyer intends to build a 1–4 family residence, and mixed-use properties that are principally designed for 1–4 family occupancy.

Does the rule cover apartment buildings? Only if the building is designed principally for occupancy by one to four families. Larger apartment buildings designed for occupancy by more than four families do not meet the definition.

What is a "non-financed" transfer? A transfer is non-financed if it does not involve a loan secured by the property and extended by a financial institution with existing anti-money laundering and SAR obligations — typically a regulated bank or credit union. All-cash purchases, seller-financed transactions, and purchases funded by private or hard-money lenders are all considered non-financed.

Is there a minimum dollar threshold? No. A reportable transfer must be reported regardless of the purchase price.

Are transfers to individuals reportable? No. The rule targets transfers to legal entities and trusts, not transfers directly to individuals.

Who is the "reporting person"? Only one person is responsible for filing the Real Estate Report for each transaction. FinCEN identifies that person through a reporting cascade in this order:

1. The closing or settlement agent listed on the settlement statement
2. The person who prepared the settlement statement
3. The person who files the deed or transfer instrument
4. The person underwriting the owner's title insurance policy
5. The person disbursing the greatest amount of funds in the transfer
6. The person providing a title evaluation
7. The person who prepared the deed

Can professionals agree on who will file? Yes. Real estate professionals involved in the cascade can enter into a written designation agreement to assign reporting responsibility to one specific person in the group.

Are buyers or sellers responsible for filing? No. The responsibility falls on the real estate professionals involved in the closing — settlement agents, attorneys, title companies, and others identified in the cascade. However, buyers (transferees) are required to provide the reporting person with the beneficial ownership and identifying information needed to complete the report.

Can a reporting person use a third-party service to file? Yes. Reporting persons may use a third-party service such as rrerule.us to prepare and file Real Estate Reports. The reporting person remains ultimately responsible for the accuracy and completeness of the filing.

What details are included in the Real Estate Report? The report collects information about:

• The reporting person (name and contact information)
• The property (address and legal description)
• The transferee (the entity or trust receiving the property)
• Beneficial owners (the individuals who ultimately own or control the entity or trust — generally those with substantial control or 25% ownership)
• The transferor (the person or entity selling the property)
• Payment information (total consideration paid and account information used for the funds)

Who is a "beneficial owner"? Generally, a beneficial owner is an individual who exercises substantial control over the entity, or who owns or controls at least 25% of its ownership interests. For trusts, beneficial owners typically include the trustee, the settlor (if living), and beneficiaries with certain rights or powers.

What identifying information is required for each beneficial owner? Name, date of birth, residential address, and details of an acceptable identification document (such as a passport or driver's license, with the issuing jurisdiction).

What is the filing deadline? The Real Estate Report must be filed by the later of:

• The last day of the month following the month in which the closing occurred, or
• 30 calendar days after the date of closing.

Where do I file the Real Estate Report? Through FinCEN's BSA E-Filing System. Reporting persons must establish a BSA E-Filing account before filing.

What if information changes after I file? If transaction information in a filed report changes, the reporting person must file an updated report with FinCEN within 30 days.

What are the penalties for non-compliance?

• Negligent violations can result in a civil penalty of up to $1,430 per violation, with an additional civil penalty of up to $111,308 for a pattern of negligent activity.
• Willful violations can result in a civil penalty of the greater of $71,545 or the amount involved in the transaction (capped at $286,184), criminal fines of up to $250,000, and imprisonment for up to five years.

(Penalty amounts reflect FinCEN's most recent published adjustments and are subject to periodic update.)

Is rrerule.us approved by FinCEN? rrerule.us is operated by Corporate Mile LLC, a FinCEN-approved API partner. Our platform integrates with FinCEN's filing infrastructure to ensure your Real Estate Report meets every required data field.

Does using rrerule.us transfer the filing obligation? No. The reporting person identified in the cascade (or by designation agreement) remains legally responsible for the filing. We prepare the report and support submission, but you retain control of the filing through your FinCEN BSA E-Filing account.

Is my data secure? Yes. We use encryption in transit and at rest, role-based access controls, and strict data retention policies. Beneficial owner information is treated as the sensitive personal data it is.

Do you offer volume pricing? Yes. Title agencies, law firms, and settlement companies handling reportable transfers regularly can contact our team about volume pricing and team accounts.