Beginning March 1, 2026, certain details concerning the conveyance of non-financed residential real property – including the transfer of co-op shares – must be reported to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. The purpose of the filing is to aid law enforcement in detecting and preventing money laundering through real property conveyances. 

While the Bank Secrecy Act imposes reporting requirements on financial institutions and other businesses to help detect and prevent money laundering, this new Rule seeks to collect information on transactions where the parties do not utilize funds from a regulated institution.

The new Rule governing “all cash” transfers – 31 CFR Part 1031 – itemizes in great detail which types of entities are covered and which are exempt, the information to be disclosed, and who is considered the “reporting person” responsible for filing the report.

The Rule applies only to sales or transfers to an entity or certain trustee. Conveyances between individuals are exempt. Transfers of 1-to-4 family residential properties, land intended for the development of 1-to-4 family residential properties, and co-op shares are covered by the Rule. 

According to FinCEN, the definition of residential property “is meant to include property such as single-family houses, townhouses, condominiums, and cooperatives, including condominiums and cooperatives in large buildings containing many such units, as well as entire apartment buildings designed for one to four families.” 

Transfers of commercial property do not need to be reported. In addition, the types of residential non-financed conveyances expressly exempt from the reporting requirement include transfers to heirs or beneficiaries, to certain types of trusts, under a bankruptcy petition, as part of a 1031 Exchange, and pursuant to a court order. 

Purchasers must provide the name, address, and IRS tax identification number (TIN) or foreign identification number of the purchasing entity, together with information as to the identity of each of the entity’s beneficial owners. Any foreign beneficial owner without an IRS TIN must provide information as to their foreign citizenship, including a non-expired foreign passport identification number. 
Necessary information about funds transferred directly from the purchaser – and not already in an escrow or trust account – includes the amount and means of payment, and to whom payment was issued. 

According to the Rule, the reporting person will report not only the source of funds, including institution names and account numbers, but also instances when a purchaser’s funds are sourced from a lender otherwise exempt from the Bank Secrecy Act reporting requirements, e.g., hard money, private, and other similar loans. 

The onus falls to the person facilitating the transfer to collect and report the information to FinCEN unless the parties agree otherwise in writing. In New York, this will likely be the title closer or transfer agent customarily tasked with facilitating the transaction. If there is no such person involved in the transaction, the person who either prepares the transfer document (e.g., deed, stock certificate) or disburses the greatest portion of money will be considered the “reporting person” for the purpose of the Rule. They have between 30 and 60 days to file the Real Estate Report with FinCEN. 

A sample of the form is available here, and a copy of the Rule is available here.
One practical consideration is what results when a party refuses to disclose the required information to the transfer agent or title closer tasked with filing the disclosure, and whether this refusal is a breach of contract or creates an obstacle to obtaining title insurance.

FinCEN recently extended the original effective date from December 1, 2025, to March 1, 2026, providing the industry with additional time to comply. If you have questions, please feel free to contact Beth here.