Hi there,
As of March 1, 2026, new federal reporting requirements now apply to certain home purchases in Arizona and across the country. These rules, administered by the Financial Crimes Enforcement Network (FinCEN), are designed to increase transparency in real estate transactions and help prevent money laundering.
While most traditional home purchases are not affected, it is helpful to understand when these requirements may apply and what to expect.
When FinCEN Reporting Is Required
The reporting requirement generally applies when a residential property is purchased by a legal entity (such as an LLC) or a trust, and the purchase is made without financing from a regulated bank or lender. This often includes all-cash purchases or transactions funded through private loans or seller financing.
In these situations, the closing or settlement agent (usually the title company) is responsible for collecting information and submitting a report to FinCEN. The report includes details about the transaction, the buyer, beneficial owners, and the source of funds.
What This Means in Practice
If your purchase falls under these rules, the title company will ask for additional information during the closing process. This may include identification documents and details about the ownership structure of the entity or trust.
The good news is that your agent and title company will guide you through what is needed. The requirement is primarily an administrative step handled by professionals involved in the transaction.
Exceptions to the Rule
Not every transaction involving an entity or trust requires reporting. Common exceptions include:
- Transfers resulting from death, divorce, or court orders
- Gifts made under specific conditions
- Easements or transfers with no monetary consideration
- Certain transactions involving individuals purchasing in their own name
Your title company can determine whether your specific situation requires reporting.
Why Buyers Should Be Aware
While these rules are new, they are now a standard part of the closing process for affected transactions. Being prepared helps keep the process moving smoothly and avoids last-minute delays. In some cases, if the required information is not provided, the transaction cannot close.
How I Can Help
If you are purchasing a home through an LLC, trust, or with non-traditional financing, I can help you understand whether FinCEN reporting may apply. I work closely with title companies to make sure all necessary steps are handled properly and that you have the information you need.
Would you like to discuss how these requirements might affect a property you are considering? I am happy to review the details with you and coordinate with the professionals involved in your transaction.
Please feel free to call or text me at (520) 400-9466 or email me at AGirard@LongRealty.com.
Warmly,
Long Realty | Long 1926 Circle of Excellence
Top Producing Tucson Real Estate Agent
(520) 400-9466