If you’re buying real estate through an LLC, trust, or other entity—especially with cash—there’s an important federal rule change you should be aware of.

Starting March 1, 2026, the federal government will begin enforcing new real estate reporting requirements designed to combat money laundering and financial crimes in real estate transactions.

Here’s what this means for you, explained simply.

What Is Changing?

The rule comes from the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury. FinCEN’s role is to prevent illegal money—such as funds tied to fraud, drugs, or terrorism—from being hidden in real estate purchases.

Going forward, when a residential property is purchased by an entity (LLC, corporation, or trust) using non-financed funds, the federal government requires disclosure of the real people behind that entity—called the beneficial owners.

This rule has technically existed since late 2025, but enforcement begins March 1, 2026.

Who Does This Affect?

This applies if ALL of the following are true:

• The buyer is an LLC, corporation, or trust
• The purchase is residential real estate
• The purchase is made with cash or private (non-bank) funds

If those boxes are checked, the transaction must be reported to FinCEN.

Traditional, bank-financed purchases by individuals are generally not impacted.

What Information Is Required?

The closing attorney will be required to collect and report information identifying:

• The individuals who ultimately own or control the buying entity
• Certain identifying and verification details (including banking information)

This is federal law, not an optional policy or a local preference.

Who Handles the Reporting?

You do not have to file anything yourself.

• The closing attorney is legally responsible for submitting the FinCEN report
• However, the attorney can delay closing if the required information is not provided on time

In some cases, attorneys may also charge higher closing fees due to the additional compliance work involved.

Why Early Communication Matters

The biggest risk with this new rule isn’t denial—it’s delay.

That’s why my role is to make sure expectations are set early and clearly:

• Buyers using LLCs or trusts should be prepared to provide information promptly
• Requests from the closing attorney should be treated as time-sensitive
• Waiting until the week of closing could create unnecessary stress or delays

The South Carolina REALTORS® association is also updating contract language to flag these requirements upfront, helping avoid surprises later.

Why This Is Actually a Good Thing

While no one loves extra paperwork, these rules help:

• Protect legitimate buyers and sellers
• Reduce fraud and financial crime in real estate
• Increase transparency in high-risk transactions

From a fiduciary standpoint, this is about protecting clients and the integrity of the transaction—which is always the priority.

Bottom Line

If you’re planning to buy real estate using an LLC, trust, or cash:

• Expect additional disclosure requirements
• Plan for earlier communication with your closing attorney
• Work with professionals who stay ahead of regulatory changes

If you have questions about how this may impact a future purchase—or want to plan proactively—I’m always happy to talk through it with you.

Finding your ideal place in this world should be fun.
The process should be careful, transparent, and done right.