DATA COLLECTION & REPORTING

Notice to Buyers and Sellers Regarding New Federal Data Collection and Reporting Requirements

On March 1, 2026, the data collection and reporting requirements under the U.S. Financial Crimes Enforcement Network (FinCEN) new Anti-Money Laundering Rule (Rule) will go into effect. The Rule applies to certain residential real estate sale transactions (including some that go beyond the typical one-to-four family residence) where the transfer is to a legal entity or trust, and which includes cash purchases, private financing or financing provided by an institution not subject to a federal Anti-Money Laundering or Suspicion Activity Report requirement. As part of this Rule, buyers and sellers are required to provide additional information and documentation about themselves, their legal entities, and/or the source of funds used in the reportable transaction. The collection of this information and documentation is required to comply with the Rule’s federal reporting requirements.

This notice is provided for informational purposes only and does not constitute legal or tax advice. You are encouraged to consult with your own independent legal counsel or tax advisor if you have questions about how the FinCEN Anti-Money Laundering Rule affects your transaction and whether your transaction is reportable.