Buyers acquiring residential property through a legal entity or trust are often the last to learn about the Real Estate Report and the first to ask questions at closing. This article answers the questions title and settlement offices most often receive from those buyers, and can be shared with clients ahead of a transaction.
Current status (October 2026): The Residential Real Estate Rule was vacated by a federal court on March 19, 2026 and is not currently enforceable. FinCEN has appealed, and the rule may be reinstated. The requirements below apply when the rule is in effect. For the current legal position, see Is the FinCEN Real Estate Report Still Required in 2026?
Why is my closing office asking for this information?
Federal regulations require a closing or settlement professional to report certain residential purchases by entities and trusts to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. The requirement applies to non-financed purchases, meaning those not financed by a bank or other lender subject to anti-money laundering obligations. The request does not suggest that a particular transaction or buyer is under suspicion. It applies uniformly to every transaction that meets the rule’s conditions. For background on the report and its purpose, see What Is the FinCEN Real Estate Report?
Does my purchase fall under the rule?
A purchase is reportable only where four conditions are met: the property is residential real property in the United States; the purchase is non-financed; the buyer is a legal entity or trust; and no exception applies. “Non-financed” includes all-cash purchases, but also purchases financed by private lenders or by the seller, as explained in Non-Financed Transfers Under the Real Estate Rule. Individuals purchasing in their own names are not covered. The full conditions are set out in What Qualifies as a Reportable Transfer.
Is there a minimum price, and are gifts covered?
There is no price threshold. A low-value transfer is treated the same way as a high-value one. Transfers for no consideration, such as gifts of property to an entity or trust, are also reportable unless a specific exception applies.
Do I have to file anything with FinCEN?
No. The report is filed by a single closing professional, the reporting person, identified under the rule’s reporting cascade or by agreement between the professionals involved. The buyer’s role is to provide accurate information to that professional. The process is described in Who Must File the Real Estate Report.
What information will I be asked to provide?
The report covers the property, the seller, the buyer entity or trust, the individuals signing on its behalf, the payment, and the buyer’s beneficial owners. For each beneficial owner, the information requested includes full legal name, date of birth, residential street address, country of citizenship, and an identifying number: a U.S. taxpayer identification number or, where none has been issued, a foreign tax identification number or a foreign passport number.
For each payment made by or on behalf of the buyer, the report includes the amount, the method of payment, the name of the financial institution and the account number the funds came from, and the name of the payor if it is not the buyer itself.
Who counts as a beneficial owner?
For an entity, a beneficial owner is any individual who exercises substantial control over the entity or who owns or controls at least 25 percent of its ownership interests. For a trust, beneficial owners generally include trustees, certain beneficiaries, and a grantor or settlor who can revoke the trust or withdraw its assets. The full standards are explained in Beneficial Ownership Under the Real Estate Rule.
Can I provide a FinCEN Identifier instead?
No. A FinCEN Identifier obtained for other purposes cannot be used in place of beneficial ownership information on a Real Estate Report. The underlying information must be provided for each beneficial owner.
Why am I being asked to sign a certification?
The closing professional may rely on the beneficial ownership information you provide only if you, or a representative of the buyer, certify in writing that it is accurate to the best of your knowledge. The certification is a standard part of the process and is kept by the closing professional for five years, as described in Recordkeeping Requirements Under the Real Estate Rule. The closing professional is not required to keep copies of your identification documents.
Will my information become public?
No. Real Estate Reports are not public records and do not appear in county land records. They are held by FinCEN in a secure database alongside other Bank Secrecy Act reports, with strict limits on use and further disclosure, and they are exempt from disclosure under the Freedom of Information Act.
What if I choose not to provide the information?
The obligation to file rests with the closing professional, who cannot file an incomplete report. Where a buyer declines to provide the information, the closing professional may decline to proceed with the transaction. Raising the requirement early, before closing is scheduled, avoids that outcome. The closing professional’s options are described in When a Transferee Won’t Provide the Required Information.
Is my trust excepted?
There is no general exception for family, estate-planning, or revocable living trusts. Certain transfers are not reportable, however, including a transfer for no consideration by an individual, alone or with a spouse, into a trust of which that individual or spouse is the settlor or grantor. Whether a specific transfer qualifies depends on its structure. The excepted categories are listed in Exempt Entities and Trusts.
What should I do while the rule is vacated?
No report is required while the court’s order remains in force. Because the rule may be reinstated, as discussed in If the Real Estate Rule Is Reinstated, buyers who regularly acquire property through entities or trusts benefit from organizing their beneficial ownership information now. For questions about a specific purchase, use the Do I Need to File tool or contact us.
