Alert: New Law for Residential Property Owners
Residential real estate owners should expect some onerous new requirements anytime they convey residential real estate, even to their own entity.
Owners of residential property across the United States should be aware of a new reporting requirement that took effect March 1, 2026.
All residential (1–4 family) conveyances into an entity, such as an LLC, corporation, or trust, must be reported to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury.
This requirement is meant to help combat and deter money laundering by increasing transparency in the U.S. residential real estate sector. It applies to all non-bank related conveyances, whether or not money changes hands between grantor and grantee, including transactions where the receiving entity is related to the grantor.
The conveyance must be reported by a title company, attorney, or any other party that has a hand in preparing the conveyance document, filing the document, or handling the closing. Failure to report carries both civil and criminal penalties.
Questions? Concerns? If we can be of assistance, please email Jeff Rattikin at rattikin@rattikinlaw.com
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