New Federal Rule May Affect Certain Real Estate Transactions – What REALTORS® Should Know

A new federal reporting rule from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) may affect certain residential real estate transactions beginning March 1, 2026.

While REALTORS® are NOT responsible for filing any reports, the rule applies to some non-financed residential transactions involving entities or trusts (such as LLCs or corporations). When the rule applies, title companies will be required to collect and report additional information about the beneficial owners of the purchasing entity.

What this could mean for your transactions:

• Buyers or sellers may be asked to provide additional personal and financial information.
• Closings could be delayed if required information is not provided in a timely manner.
• Additional title fees may apply.
• Reporting is federal, mandatory, and time-sensitive.
• Information is submitted to FinCEN and is not public or recorded in county records.

REALTORS® play an important role in setting expectations early, encouraging preparedness, and coordinating closely with title companies—but compliance and reporting rest with the title company, not the REALTOR®.

Please take time to read the full notice from the Land Title Association of Colorado, which explains when the rule applies, outlines exemptions, and provides detailed guidance for navigating these transactions.

Staying informed will help minimize surprises and keep transactions moving smoothly.