AnswerAs of Oct. 21, 2026, no one has to file FinCEN's new "Real Estate Report" on all-cash home purchases by LLCs, corporations or trusts. A federal court in Texas vacated the rule on March 19, 2026, less than three weeks after reporting began on March 1. The Treasury Department has appealed to the Fifth Circuit, and briefing is under way. FinCEN says that if the rule is reinstated, transfers that closed while it was vacated will not have to be reported retroactively.
Status at a glance (as of Oct. 21, 2026)
| Date | What happened | Source |
|---|---|---|
| Aug. 29, 2024 | FinCEN publishes the final Residential Real Estate Rule (89 FR 70258), originally effective Dec. 1, 2025 | Federal Register |
| Sept. 30, 2025 | FinCEN postpones reporting to March 1, 2026 through an exemptive relief order | FinCEN |
| Oct. 9, 2025 | FinCEN renews its title-insurance Geographic Targeting Orders and says they will expire Feb. 28, 2026 | FinCEN |
| Feb. 25, 2026 | N.D. Texas (Corley) upholds the rule against a constitutional challenge | Court docket |
| March 1, 2026 | Reporting begins for reportable transfers closing on or after this date | FinCEN FAQ H.1 |
| March 19, 2026 | E.D. Texas (Flowers Title Companies v. Bessent) vacates the rule | FinCEN; court docket |
| April 17, 2026 | Fidelity National Financial appeals a Middle District of Florida ruling to the 11th Circuit (No. 26-11307) | Court docket |
| May 11, 2026 | Government files its notice of appeal to the 5th Circuit (No. 26-40285) | Court docket |
| May 18, 2026 | FinCEN FAQs: no filing required, no liability, no retroactive reporting | FinCEN |
| Oct. 16, 2026 | Flowers Title files its 5th Circuit brief. The government's reply is due Nov. 6; it moved Oct. 20 to extend that to Nov. 20 | Court docket |
What the rule required (while it was in effect)
The RRE Rule targeted non-financed transfers of residential real property to legal entities or trusts. It did not cover purchases made directly by individuals. - "Non-financed" means no loan to every buyer from a lender that has both an anti-money-laundering program and suspicious-activity reporting obligations. A single buyer who puts 50% down and takes a qualifying mortgage was not reportable. A cash purchase by an LLC was. - No price threshold. FinCEN said neither the value nor the price determines whether a transfer is reportable, and gifts to entities or trusts were reportable. - Exceptions included transfers resulting from death, divorce, bankruptcy and court-supervised sales; no-consideration transfers by an individual (alone or with a spouse) to a trust that the individual or spouse created; transfers to a 1031 qualified intermediary; and easements. - Who filed: one "reporting person", chosen by a cascade that starts with the closing or settlement agent listed on the settlement statement and runs down to the title insurer and others, or by written designation agreement. FinCEN said a real estate agent acting only as an agent is not a reporting person. - What was reported: - the buyer entity or trust and its beneficial owners; - the individuals signing for it; - the seller; - the property; - the total price. - When: by the later of 30 days after closing or the last day of the following month.
What the court decided and what comes next
- Vacatur. In Flowers Title Companies, LLC v. Bessent, the Eastern District of Texas ruled on March 19, 2026 that FinCEN lacked legal authority to issue the rule and vacated it (as summarized by FinCEN). While that order stands, the rule has no legal effect.
- The appeal. The government's appeal is in the U.S. Court of Appeals for the Fifth Circuit. As of Oct. 21, 2026, the opening and response briefs are filed and the government's reply is pending. No argument date has been set.
- Split decisions elsewhere. FinCEN notes that two other federal judges rejected challenges to the rule. One of those cases, brought by Fidelity National Financial, is on appeal in the Eleventh Circuit.
- No retroactive reporting. If the vacatur is overturned, FinCEN says it will issue guidance on when reporting resumes. Reports will not be required for transfers that closed while the order was in force.
What it means for luxury buyers and sellers today
- Closings. There is no FinCEN Real Estate Report at closing while the vacatur stands. Your title or escrow company's own information requirements are separate, so ask what they will collect.
- Older checklists. Closing checklists written before March 19, 2026 may still describe mandatory reporting. Confirm the current position with your attorney and title company.
- Plan for reinstatement. If you are buying through an LLC or trust, ask your closing agent how they would handle reporting if an appellate court restores the rule before you close.
- Other rules still apply. IRS reporting (such as Form 1099-S), FIRPTA withholding for foreign sellers, and state transfer taxes are separate obligations. See FIRPTA for foreign buyers.
- Don't confuse it with the CTA. The Corporate Transparency Act's beneficial-ownership (BOI) reporting is a different FinCEN program. FinCEN's Aug. 14, 2026 final rule (91 FR 52508) exempts reporting companies from reporting U.S.-person beneficial owners.
Questions to ask your attorney or closing agent
- Is anything about this purchase reportable to FinCEN today, and who would be the reporting person if the rule returns?
- What entity and ownership information will the title or escrow company ask for under its own procedures?
- Does buying in an LLC or trust still make sense for privacy, liability or estate planning?
- If financing is involved, does the lender have AML and SAR obligations, so the purchase counts as "financed"?
Talk with a local agent
Browse Find a Realtor, or the Miami and Manhattan agent pages, on Haute Real Estate Network.
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Related pages
- FIRPTA for foreign buyers of U.S. luxury real estate
- Foreign buyers guide: purchasing luxury real estate in Miami
- 1031 into luxury condos: timing traps for sellers
- What is a cash purchase in luxury real estate?
Sources
Sources checked on October 21, 2026.
- FinCEN, Residential Real Estate Rule (alert on the March 19, 2026 vacatur)
- FinCEN, Residential Real Estate Frequently Asked Questions (status FAQs issued May 18, 2026)
- FinCEN, FinCEN Announces Postponement of Residential Real Estate Reporting Until March 1, 2026 (Sept. 30, 2025)
- FinCEN, FinCEN Renews Residential Real Estate Geographic Targeting Orders (Oct. 9, 2025)
- Federal Register, Anti-Money Laundering Regulations for Residential Real Estate Transfers, 89 FR 70258 (Aug. 29, 2024)
- Federal Register, Beneficial Ownership Information Reporting Requirement Revision, 91 FR 52508 (Aug. 14, 2026)
- Flowers Title Companies, LLC v. Bessent, No. 6:25-cv-00127 (E.D. Tex.) docket (CourtListener)
- Flowers Title v. Bessent, No. 26-40285 (5th Cir.) docket (CourtListener)
- Corley v. U.S. Department of the Treasury, No. 5:25-cv-00086 (N.D. Tex.) docket (CourtListener)
- Fidelity National Financial, Inc. v. Secretary, U.S. Department of the Treasury, No. 26-11307 (11th Cir.) docket (CourtListener)
This article is editorial and informational only, not legal, tax or brokerage advice. The rule's status may change; confirm the current position with a licensed attorney and your title or closing agent before you close.