The FinCEN Residential Real Estate Anti-Money Laundering Rule requires certain all-cash and non-financed residential real estate purchases by entities or trusts to be reported to the federal government, including information about the real people who own or control the buyer. The rule is designed to prevent money laundering through real estate while allowing legitimate transactions to proceed with advance planning and transparency.

Condition 1: Residential Property

The property is residential real estate, which includes:

• One-to-four family homes;
• Condominiums;
• Cooperative units;
• Vacant land zoned for residential use; or
• Mixed use commercial that includes 1-4 residential units

Condition 2: Entity or Trust Buyer

The buyer is NOT an individual person, but instead is:

• A legal entity (LLC, corporation, partnership); or
• A trust

Condition 3: All-Cash or Non-Traditional Financing

The purchase is NOT funded by a loan from a regulated mortgage lender, bank, or credit union. This includes transactions using:

• Cash;
• Private loans;
• Hard-money lenders;
• Seller financing;
• Land contracts; or
• Other non-traditional financing arrangements

If ANY one of these conditions is not present, no Real Estate Report is required.