Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

FinCEN Residential Real Estate Reporting Rule Now in Effect

Client Alert
March 6, 2026

Effective March 1, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new Residential Real Estate Reporting Rule. The Rule is designed to combat financial crimes involving bad actors using entities such as LLCs and corporations to anonymously purchase residential property to hide and launder dirty money.  

Under the Rule, certain real estate professionals involved in closings and settlements nationwide are required to report information to FinCEN for non-financed transfers of residential real estate. If reporting is required, a Real Estate Report must be filed with FinCEN.

When Reporting Is Required

Reporting generally applies when the following are true:

  • The Transfer involves Residential property: A structure intended for occupancy by one to four families or land where such a structure will be built.
  • Non-financed transfer: No loan or mortgage is provided by a financial institution that is subject to anti-money laundering requirements.
  • Transfer to an entity or trust: Transfer of property is to an entity or trust instead of an individual.
  • No exception to the rule applies.

There is no minimum dollar amount for a covered transaction, and any transfer of ownership by sale or gift can qualify. If a report is required, it must be filed with FinCEN by the end of the month in which the closing occurred or within 30 days, whichever is later. Civil and criminal penalties for not filing can be significant and may include fines of up to $250,000 and imprisonment for willful and repeated violations.

Information Required for the Report

If reporting is required, information may need to be collected regarding:

  • The reporting person.
  • The residential real property being transferred.
  • The transferee entity or transferee trust.
  • The beneficial owners of the transferee entity or transferee trust.
  • Certain individuals representing the transferee entity or transferee trust in the transfer.
  • Any trustee that is an entity, if the transferee is a trust.
  • The transferor.

Exemptions

Some types of transfers are exempt, including:

  • Transfers resulting from death.
  • Transfers incident to a divorce or dissolution.
  • Transfers made to a person’s trust, where the trust is for the benefit of that person or their spouse.

Transfers to certain highly regulated transferees are also exempt from the definition of a transferee entity, including transfers to certain government entities, securities brokers or dealers, banks, and credit unions.

If you are involved in a non-financed transfer of residential real estate, you may be required to provide certain information so the appropriate report can be filed with FinCEN. If you have questions about how this rule may affect your transaction, please contact BMD Member Blake Gerney at brgerney@bmdllc.com.

Real EstateFinCENBlake R. Gerney
Client Alert

Quiet Hours Texts and TCPA Claims: Consent Remains King as Courts Divide on Text Messages

March 31, 2026Businesses face increasing TCPA lawsuits over off-hours marketing texts, but recent court decisions highlight strong defenses. Clear consumer consent and updated terms and conditions can defeat many claims, while a growing number of courts are finding that text messages are not “telephone calls” under the statute. Proactive compliance measures, including clickwrap agreements and forum-selection clauses, are critical to reducing risk.Client Alert

New Ohio Reporting Requirements for Non-Residential Contractors

March 18, 2026Ohio’s E-Verify Workforce Integrity Act, effective March 19, 2026, requires all nonresidential construction companies, subcontractors, and labor brokers to use E-Verify to confirm employee work eligibility on projects across the state. The law applies regardless of company size and carries financial penalties and potential restrictions on future state contracts for noncompliance. Some uncertainty remains around requirements for existing employees, making early compliance planning important.Client Alert

DOT Non-Domiciled CDL Rule

March 11, 2026A new rule from the Federal Motor Carrier Safety Administration (FMCSA) will significantly narrow eligibility for non-domiciled Commercial Driver’s Licenses (CDLs) beginning March 16, 2026. The rule limits eligibility to holders of H-2A, H-2B, and E-2 visas and eliminates Employment Authorization Documents (EADs) as qualifying proof of work authorization. As a result, many lawfully present and work-authorized immigrants, including refugees, asylees, DACA recipients, and Temporary Protected Status holders, will no longer be able to obtain or renew a non-domiciled CDL. The change is expected to affect roughly 194,000 drivers nationwide and has prompted multiple legal challenges, including a pending emergency stay request before the United States Court of Appeals for the District of Columbia Circuit.Client Alert

Department of Education Proposes Redefinition of “Professional Degree,” Excluding Nursing and Limiting Graduate Loan Borrowing

February 20, 2026The U.S. Department of Education has issued a Notice of Proposed Rulemaking that would redefine “professional degree” programs under the One Big Beautiful Bill Act. The proposal excludes nursing from the recognized list and would impose new borrowing limits for graduate students while eliminating the Grad PLUS program. Public comments are due by March 2, 2026.Client Alert

First-of-Its-Kind Federal Ruling Finds Use of Consumer AI Tool May Destroy Attorney-Client Privilege

February 17, 2026On February 10, 2026, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York issued a first-of-its-kind ruling finding that documents generated by a criminal defendant using a consumer AI platform were not protected by attorney-client privilege after being shared with counsel. The court treated the AI tool as a third party, concluding that entering sensitive information into a publicly available platform may waive confidentiality. The ruling also suggests that the work product doctrine may not apply where AI-generated materials are created independently by a client rather than at counsel’s direction. The decision signals that parties should exercise caution when using consumer AI tools in connection with legal matters.
Older posts