Real Estate in Focus: New Rules Target Cash-Only Property Deals
On June 28, 2024, the Financial Crimes Enforcement Network (FinCEN) issued a proposed rule to strengthen and modernize financial institutions’ anti-money-laundering programs. The proposed rule would amend regulations to curb illicit activities in the U.S. residential real estate market by requiring reporting for non-financed (cash) real estate transfers involving entities and trusts, excluding individual buyers. This is intended to increase transparency and protect national security.
The rule applies to most residential property types (e.g., single-family homes, townhomes, condos) and mandates reporting if the property is transferred to an entity (e.g., LLCs, corporations, partnerships) or trust. Certain exclusions exist, such as transfers involving government authorities or low-risk situations (e.g., divorce, death, bankruptcy).
The responsibility for reporting lies with professionals involved in the real estate process, according to a hierarchy. The required information must be submitted to FinCEN within 30 days and include details on the entities involved, payment methods, and property information. The data is stored securely and not accessible to the public.
As experienced estate planning attorneys, we at Caldwell Law work with our clients to create holistic estate plans uniquely tailored to our clients’ individual needs. Generally, putting your home in trust can help give you peace of mind, and ultimately save your family time and money. While not everyone owns real estate, everyone needs an estate plan. If you would like to schedule a consultation or find out more about the importance of estate planning, please contact us.
