What Buyers Need to Know About FinCEN Filing
If your entity or trust is purchasing residential property without traditional bank financing, your transaction likely requires a FinCEN filing. Here's what that means and how we make it simple.
What Is FinCEN and Why Does It Matter?
The Financial Crimes Enforcement Network (FinCEN) is a bureau of the U.S. Department of the Treasury. Its Residential Real Estate Reporting Rule (31 CFR 1031.320) requires title companies to file a Real Estate Report for certain property purchases, specifically non-financed transfers of residential real property to legal entities and trusts.
The rule is designed to increase transparency and prevent the use of shell companies to launder money through real estate. It applies to transactions closing on or after March 1, 2026.
If you're buying as an individual with a traditional mortgage, this rule does not apply to you. It specifically targets purchases through entities (LLCs, corporations, partnerships) and trusts without qualifying institutional financing.
When Would I Be Affected?
A FinCEN filing is required when your transaction meets these conditions:
Purchasing Through a Legal Entity or Trust
You’re buying residential property through an LLC, corporation, partnership, estate, or any type of trust (revocable or irrevocable) rather than in your personal name as an individual.
Without Qualifying Institutional Financing
The purchase is not fully financed by a loan from a bank, credit union, or licensed mortgage lender that has AML and SAR obligations. Seller financing, private loans, hard money loans, family loans, and cryptocurrency all count as "non-financed" under the rule.
Residential Property in the United States
The property is a 1–4 family home, condo, cooperative, or vacant land where you intend to build a 1–4 family structure, located anywhere in the U.S., its territories, or Indian lands.
No Minimum Purchase Price
Unlike previous Geographic Targeting Orders, this rule has no dollar threshold. A qualifying transfer at any amount is reportable.
Not sure if your transaction requires a filing? Don't worry. Your escrow officer at Driggs Title runs an 8-step determination questionnaire that evaluates every factor automatically. You don't need to assess this yourself.
What Information Will I Need to Provide?
If your transaction requires a filing, you'll complete a guided digital form covering these areas:
Entity or Trust Details
- Legal name (and DBA if applicable)
- EIN or tax identification number
- State or country of formation
- Principal place of business address
- Trust execution date (for trusts)
Beneficial Ownership
- Individuals with 25%+ ownership interest
- Individuals with substantial control
- Full name, date of birth, and SSN/ITIN for each
- Residential address and citizenship
- Trust settlors, trustees, and qualifying beneficiaries
Signing Authority
- Individual signing on behalf of the entity/trust
- Their capacity (officer, partner, trustee, etc.)
- Employer name
- Personal identification details
Funding Sources
- Payment method (wire, check, cash, crypto, etc.)
- Amount per funding source
- Financial institution and account details
- Payor information if different from transferee
What to Expect
Receive a Secure Link
Your escrow officer sends you a secure, personalized link via email. This link is unique to your transaction. No account creation or password needed. Links are valid for 7 days.
Complete the Guided Form
Follow the step-by-step form to provide your entity details, beneficial ownership information, and funding sources. Built-in validation catches errors in real time. Your progress saves automatically, so you can close the form and return later.
Review and Sign Electronically
Review all your information for accuracy on the summary page, then certify with your electronic signature. No printing, scanning, or mailing required.
You’re Done
Once you submit, Driggs Title handles everything else: compliance review, XML generation, submission to FinCEN’s BSA E-Filing system, and tracking through acceptance.
Your Information Is Secure
We understand that providing sensitive information like SSNs and beneficial ownership details requires trust. Here's how we protect your data:
- All data is encrypted in transit (TLS) and at rest
- Access links are cryptographically unique, single-use after submission, and expire after 7 days
- No accounts or passwords, so no credentials to be compromised
- Information is used solely for the required FinCEN filing
- Access is role-restricted and every action is logged for audit
Common Questions from Buyers
Why am I being asked for this information?
Federal law (31 CFR 1031.320) requires title companies to report certain real estate transactions to FinCEN. The information you provide is used solely for this mandatory filing and is not shared for any other purpose.
When did this requirement start?
The rule was published in August 2024 and reporting became required for transactions closing on or after March 1, 2026. It applies nationwide with no geographic limitations.
I’m buying as an individual with a bank mortgage. Does this apply to me?
No. The rule only applies when the buyer is a legal entity or trust and the purchase is not financed by a qualifying institutional lender. Individual purchases with traditional mortgages are not reportable.
What happens if I don’t provide the information?
The title company is legally required to file the report regardless. FinCEN does not permit incomplete submissions as a reason not to file. Providing your information promptly helps ensure the filing is complete and accurate.
Can I save my form and come back later?
Yes. Your progress saves automatically every 30 seconds. You can close the form and return using the same secure link at any time before it expires (7 days).
I already submitted. How can I access my filing?
Use the “Check My Filing” button to request a new access link sent to the email address your escrow officer has on file for you.
Ready to Access Your Filing?
Enter the email address your escrow officer used for your transaction and we'll send you a secure link to your form.