The settlement services industry has been granted more time to prepare for new regulations governing non-financed transfers of residential real property to legal entities and trusts.
In an exemptive relief order issued on Sept. 30, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced that reporting requirements for the upcoming “Anti-Money Laundering Regulations for Residential Real Estate Transfers” will not be enforced until March 1, 2026.
FinCEN made the announcement 10 minutes before a U.S. District Court hearing was scheduled to begin on Fidelity National Financial's request for a preliminary injunction to delay the start of the rule.That hearing was ultimately canceled by a joint request from FinCEN and Fidelity.
The rule, more commonly known as the “Residential Real Estate Rule” or “the Final Rule,” was set to go into effect, on Dec. 1. However, with the relief order, all persons covered by the rule are now exempt from reporting requirements until the new deadline, according to FinCEN.
In its announcement, FinCEN noted that the exemptive relief order is intended to grant impacted individuals and businesses more time to prepare for the new regulatory requirements.
To take advantage of the additional time to prepare, be sure to explore these resources from October Research about FinCEN’s real estate reporting rule:
Keys to Real Estate Podcast episodes:
Tuesdays with Mary blog guest post: What to know about FinCEN reporting requirements for real estate transactions
Webinar: Countdown to Compliance: FinCEN's Residential Rule Explained
The Title Report subscriber-exclusive story: Lots of preparation key before FinCEN reporting rule takes effect
The Legal Description subscriber-exclusive Q&A: Questions on FinCEN’s residential rule answered
The Legal Description subscriber-exclusive stories: