FinCen Residential Real Estate Reporting Rule Vacated

The Financial Crimes Enforcement Network’s (FinCen) new reporting rule relating to residential real estate transfers went into effect on March 1, 2026. Eighteen days later, a federal court in Texas “vacated and set aside” FinCen’s new residential real estate transfer rule. In general, the court ruled that FinCen exceeded its authority to promulgate such a rule – which was a very similar argument as to why the Corporate Transparency Act was also vacated.

The court’s ruling applies nationwide. FinCen has acknowledged this court ruling as the following statement has been posted to FinCen’s website:

ALERT: In light of a federal court decision, reporting persons are not currently required to file real estate reports with FinCen and are not subject to liability if they fail to do so while the court order remains in force.

As such, you are not currently required to submit any information to FinCen relating to any reportable real estate transfer. However, I do recommend still collecting and holding the information that is to be reported just in case a court ultimately rules that this rule is actually enforceable and that such ruling is retroactive. This is based on our recent experience with the on-again, off-again reporting obligations relating to the Corporate Transparency Act. If you have any questions, do not hesitate to be in contact to discuss.

 

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Chris Corpus

Founding Partner at Corpus Law Inc

This article does not provide legal advice or create an attorney-client relationship. If you have any questions or would like to learn more about this topic or if you have other legal questions, do not hesitate to contact Chris Corpus, Esq. of Corpus Law Inc at 216-973-2475. Copyright Christopher A. Corpus 2026.