Compliance · status checked Oct 24, 2026FinCEN real estate reporting rule: where it stands in 2026
FinCEN's Residential Real Estate Rule required reports on certain non-financed transfers of residential real estate. On March 19, 2026 a federal court vacated the rule; FinCEN, with the Department of Justice, has appealed. According to FinCEN, while the order stands, reporting persons are not required to file Real Estate Reports. The status can change if the decision is stayed or reversed – check fincen.gov/rre before each closing that might be covered.
How we got here
2024
Rule issued
FinCEN's Residential Real Estate Rule (31 CFR 1031.320) targets non-financed transfers of residential real estate.
March 19, 2026
Vacated
The U.S. District Court for the Eastern District of Texas vacated the rule (Flowers Title Companies v. Bessent).
After the decision
Appeal
FinCEN, with the Department of Justice, appealed the decision.
Now
No filing required while the order stands
FinCEN states reporting persons are not required to file Real Estate Reports with FinCEN while the order remains in force.
What it means for TCs
Title and escrow lead
Reporting obligations, if revived, fall on the settlement side – follow the title company's instructions.
Texas contract ¶20
TREC 20-19 now requires both parties to promptly give escrow any statements and information it requests for governmental reporting requirements – answer those requests quickly.
Watch the appeal
If the court's order is stayed or reversed, reporting could resume on short notice.
Questions about the FinCEN real estate rule
Is the FinCEN residential real estate rule in effect?
As of October 24, 2026, FinCEN says that after the March 19, 2026 court order vacating the rule, reporting persons are not required to file Real Estate Reports while the order stands; FinCEN has appealed.
Who would have to report under the rule?
The rule placed the obligation on settlement-side "reporting persons" such as title and escrow companies for covered non-financed transfers.
Did FinCEN appeal the decision?
Yes – FinCEN, with the Department of Justice, has appealed.
Why does the Texas contract mention governmental reporting?
TREC 20-19 ¶20 requires the parties to give escrow the statements and information it requests for governmental reporting requirements, for example reporting to the U.S. Treasury.
Where can I check the current status?
On FinCEN's page fincen.gov/rre.
Related
ClosingCode keeps every closing requirement and request on the deal's checklist – so nothing the title company asks for is missed.
Start free trialSources: FinCEN, Residential Real Estate page (fincen.gov/rre, read October 24, 2026); Gibson Dunn client alert of April 1, 2026 on Flowers Title Companies, LLC v. Bessent (E.D. Tex., No. 25-cv-127); TREC No. 20-19 ¶20.
General information as of October 24, 2026, not legal advice. Compliance questions belong with the title company and counsel. ClosingCode is software; it is not a law firm, title company or brokerage.