Buyers Beware:

What’s changing for buyers

The Financial Crimes Enforcement Network (FinCEN) has expanded its oversight of residential real-estate transfers and is zeroing in on non-financed sales to legal entities and trusts.

While the final rule is postponed until March 1, 2026, transactions this winter and spring often already incorporate pre-compliance checks—and the existing Geographic Targeting Orders (GTOs) remain active across many states.

That means every buyer should prepare—not just sellers.

What buyers should watch

• Are you buying via an entity (LLC, corporation, trust) rather than as an individual? If yes: higher risk of reporting and additional scrutiny.
• Are you making large deposits, paying all-cash or avoiding a traditional bank mortgage? The “non-financed” transfers are central to the rule.
• Your closing attorney/title company may ask for beneficial-ownership info (names, DOBs, addresses) of all owners with 25%+ interest or “substantial control.”
• Even if you’re financing with a mortgage, if your lender is non-bank or the financing is non-traditional you may still fall under “non-financed” domain.

Practical steps for buyers

• Before you make an offer: ask your agent if the transaction involves an entity, trust, or all-cash deal that might trigger the new rule.
• If you are using an entity or trust: gather beneficial-ownership data early (names, addresses, tax IDs, control interests) so your closing pro isn’t scrambling.
• If you’re using cash or private lending: understand the financing source may cause different closing workflow and timing.
• Coordinate closely with your title/escrow/closing attorney: they may become the “reporting person” responsible for FinCEN compliance.
• Allow extra time. Because transactions triggering the rule may require additional documentation or review, buyers should budget for possible delay—and possibly higher closing costs or escrow hold-backs.

Bottom line for buyers

If you’re buying in the next 6–12 months, don’t assume the past closing checklist covers you. Ask bigger questions, gather more data, and pick closing professionals who are up to speed on the rule. Being proactive now gives you control over timing and cost—and avoids being reactive when the rule lands.