Beginning March 1, 2026, new federal reporting requirements will apply to certain real estate transactions. The rules are being implemented by the U.S. Department of the Treasury through the Financial Crimes Enforcement Network (FinCEN) and are aimed at increasing transparency in higher-risk real estate purchases.
Most homebuyers will not be affected. However, buyers, paying cash or using non-traditional financing and purchasing through an entity or trust should be aware of the changes.
What’s changing?
For certain purchases, additional buyer and seller information must be reported to FinCEN at the time of closing. The closing attorney will generally handle the filing, but buyers and sellers are responsible for providing the required information prior to closing.
Who does this apply to?
The new rule primarily affects Georgia buyers who are:
- Purchasing residential property without a traditional mortgage (such as cash or private financing), and
- Buying property in the name of a legal entity or trust, including LLCs, partnerships, or trusts.
- “Residential Property” includes a variety of property which may include apartment buildings with 4 or less units and unimproved property if the buyer ever intends to build a home on it.
If buyers purchase in their personal names or use a conventional lender, these requirements generally do not apply.
What information must be reported?
For transactions covered by the rule, the closing attorney must collect and report information about the underlying owners or beneficiaries of the entity or trust and those with authority to act for the entity or trust.
This will include:
- Full legal name
- Date of birth
- Current address
- Citizenship
- Social Security Number or tax identification number
- Bank account information, including bank, account number and owner of the account, for all funds used in the purchase
Why this matters for buyers and sellers
The amount of information required from both buyers and sellers can be exhaustive and must be provided prior to the closing for the property.
Buyers using entities, trusts and paying cash or using private financing should confirm early in the transaction whether FinCEN reporting will apply.
Downloadable buyer resource
We’ve included a downloadable flyer below that outlines the new FinCEN reporting requirements and how they will apply to real estate transactions.
Questions about your real estate transaction?
If you’re planning to purchase property in an entity or trust and paying cash or using private financing, our real estate attorneys can help you understand how these federal requirements may affect your closing and what steps to take to stay compliant. You can reach us by phone at 706-354-4000 or fill out our online contact form.
Visit here for additional information: https://www.fincen.gov/rre-faqs
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