Effective for all transfers after March 1, 2026, the U.S. Treasury Financial Crimes Enforcement Network ("FinCEN") requires the filing of a Real Estate Report (RER) for all "non-financed" transfers of "residential" real estate to an "entity or trust" unless an exemption applies. The requirement specifically applies to transfers for which NO CONSIDERATION is exchanged, such as a gift.

The "reporting person" is determined by the "reporting cascade", which lists seven roles involved in the transfer. Where there is not a typical closing transaction (escrow, title, closing), the "reporting person" is the person that files the deed with the recordation office. Failure to file the report by the deadline carries hefty penalties.

If it appears your proposed transfer may be reportable, US Deeds will walk you through the questions necessary to determine whether or not a report must be filed. If reportable, US Deeds will file the report with FINCEN for an additional fee or you may record your deed and file the FINCEN report yourself.

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Key Definitions

"Residential" Property

Property located in the United States (a) containing a structure designed principally for occupancy by one to four families, (b) land on which the transferee intends to build such a structure, (c) a unit designed principally for occupancy by one to four families (i.e., a condominium) or (d) shares in a cooperative housing corporation.

"Non-Financed" Transfers

Transfers that do not involve an extension of credit to the transferee entity or trust that is both secured by the property and made by a financial institution subject to anti-money laundering requirements and Suspicious Activity Report obligations.

"Transferee Entity"

Any person other than a transferee trust or an individual (i.e., a corporation, LLC, partnership, estate or association).

"Transferee Trust"

Any legal arrangement created when a grantor or settlor places assets under the control of a trustee for the benefit of one or more beneficiaries.

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Exemptions

If any of the following exemptions apply, the transfer is NOT reportable:

• Transfer by individual grantor to a trust created by grantor or their spouse for NO consideration
• Transfer incident to the death of an individual (per terms of will or trust, intestacy, surviving joint owners, TOD deeds)
• Transfer incident to divorce
• Transfer to bankruptcy estate
• Transfer ordered by a court
• Transfer of an easement only
• Transfer to a 1031 intermediary
• Transfer to a governmental entity
• Transfer to a public trust or other regulated entity

What to expect if reportable
Learn more at fincen.gov/rre