Requirement: All-Cash Deals to Be Reported to Feds
Written By:
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 to detect and prevent 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.
Beth M. Gazes
Beth M. Gazes is an associate at Gallet Dreyer & Berkey, LLP. She guides her Co-op, Condominium, and HOA clients through all aspects of corporate governance including enforcement of and amendments to governing documents, negotiations with vendors, collection of unpaid maintenance and assessments, resolution of conflicts with shareholders and unit owners, drafting access agreements, and the defense of discrimination claims, to name a few. Beth also represents individuals and companies in other real estate matters involving partitions, foreclosures, and mechanics’ liens.