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Buyers Beware: How New Federal Monitoring Rules Affect Your Mortgage, Deposits, and Closing Docs

Buyers Beware: How New Federal Monitoring Rules Affect Your Mortgage, Deposits, and Closing Docs

Nov 14, 2025 | Home Buyer Tips, Home Seller Tips

Buyers Beware:

How New Federal Monitoring Rules Affect Your Mortgage, Deposits, and Closing Docs

If you’re planning to buy a home in the next year, you need to see the bigger picture. It’s not just about finding the right property and securing a mortgage anymore. Regulatory forces are tightening—and your transaction may face unexpected documentation, delays or compliance reviews.

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.

Looking Ahead

Staying Ready in an Uncertain Market

Whether you’re buying, selling, or refinancing, an experienced attorney helps safeguard your transaction. From rate-lock coordination to closing documentation, The Law Office of David R. Rocheford, Jr., P.C. ensures your real estate deal stays on track — no matter what direction the market moves next.

family looking at a house with a for sale sign in the window

SOURCES

  1. Fact sheet from FinCEN on the rule overview. https://www.fincen.gov/system/files/shared/RREFactSheet.pdf?utm_source=chatgpt.com
  2. Delay of effective date until March 1, 2026. https://www.hklaw.com/en/insights/publications/2025/10/fincen-delays-residential-real-estate-transfer-reporting-rule?utm_source=chatgpt.com
  3. Title/closing professional obligations. https://www.buchalter.com/insights/new-fincen-rule-on-transparency-reporting-in-residential-real-estate-closings/?utm_source=chatgpt.com

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Is Your Transaction a Red Flag? What Triggers Extra Federal Scrutiny in 2025 Real Estate

Is Your Transaction a Red Flag? What Triggers Extra Federal Scrutiny in 2025 Real Estate

Nov 13, 2025 | Home Buyer Tips, Selling Your Home

Is Your Transaction a Red Flag?

What Triggers Extra Federal Scrutiny in 2025 Real Estate

In the changing world of real-estate compliance, you don’t have to do anything intentionally wrong to trigger extra federal scrutiny. Many everyday transaction features are becoming “red flags” in the eyes of the Financial Crimes Enforcement Network (FinCEN) and closing professionals adapting to the new rule. If you’re involved in a sale or purchase, one or more of these triggers may apply—and if ignored, you risk delay, cost, or worse.

Common red-flags to watch

Entity or trust as buyer

If the buyer is an LLC, corporation, partnership or trust instead of an individual, the transfer may be reportable. The rule zeroes in on “transferee entity or trust” status.

Non-financed (all-cash or private financing) deal

If there’s no traditional bank mortgage subject to AML/SAR rules, the transaction qualifies as non-financed—one of the key criteria.

Vacant land or mixed-use residential property

The rule covers residential real property broadly: single-family homes, townhouses, condos, co-ops, and vacant land intended for residential use.

Seller or buyer using shell or layered ownership structures

If the chain of ownership is opaque, or if beneficial owners hold through multiple entities/trusts, that complexity itself is a risk.

Large deposits, private loans, off-book financing

Transactions where funds deposit sources are non-traditional, or where private lenders are used instead of banks with AML programs, attract attention

Jurisdictions under existing GTOs

Some metros already have heightened scrutiny under GTOs (Geographic Targeting Orders) requiring buyer identity disclosures for high risk purchases.

Why these trigger-features matter

Each red-flag correlates with a higher risk of illicit finance entering the market via real-estate. FinCEN estimates that non-financed transfers to legal entities/trusts are “higher risk for money laundering” because they avoid traditional lender oversight.

Because of this, transactions featuring one or more of the triggers above often require additional documentation, verification of beneficial owners (names, DOB, addresses, SSNs or TINs) and may even prompt reporting to federal authorities.

What you should do if your transaction has red-flags

  • Disclose early. If any of the features above apply, inform your closing team and plan for extra time and documentation.
  • Gather full ownership info. Make sure you know exactly who owns or controls every entity/trust involved, and that their details are documented.
  • Check financing structure. If you’re bypassing a typical mortgage, understand how the funds are sourced, and have proof ready.
  • Choose knowledgeable professionals. Title companies, attorneys and escrow agents with compliance awareness can guide you through the process more smoothly.
  • Monitor closings in high-scrutiny areas. If you’re in a metro under a GTO (e.g., certain CA, TX, FL counties), expect closer attention.

Key takeaway

A “quiet” sale or purchase may not feel complicated—but if it has any of the trigger-features above, it could become one of the most complicated closings you face. By spotting red-flags early and aligning with experienced professionals, you can keep your deal on track and avoid surprise compliance holds.

Looking Ahead

Staying Ready in an Uncertain Market

Whether you’re buying, selling, or refinancing, an experienced attorney helps safeguard your transaction. From rate-lock coordination to closing documentation, The Law Office of David R. Rocheford, Jr., P.C. ensures your real estate deal stays on track — no matter what direction the market moves next.

homes with for sale sign listed in front

SOURCES

  1. FinCEN fact sheet on rule and red-flag criteria. https://www.fincen.gov/system/files/shared/RREFactSheet.pdf
  2. Title/escrow guidance on non-financed transfers. https://www.oldrepublictitle.com/title-agents/fincen-reporting
  3. Article on how closing professionals must spot beneficial owners. https://www.buchalter.com/insights/new-fincen-rule-on-transparency-reporting-in-residential-real-estate-closings
  4. GTO renewal details highlighting jurisdictions of focus. https://www.fincen.gov/news/news-releases/fincen-renews-residential-real-estate-geographic-targeting-orders-0

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

LENDERS
BUYERS
SELLERS
REALTORS®
Lenders David Rocheford
LENDERS
Buyer David Rocheford
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Sellers David Rocheford
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The 2025 Transparency Push: What Home Sellers Need to Know Before Listing

The 2025 Transparency Push: What Home Sellers Need to Know Before Listing

Nov 13, 2025 | Home Buyer Tips, Home Seller Tips, Mortgage

The 2025 Transparency Push

What Home Sellers Need to Know Before Listing

If you’re preparing to sell a home in late 2025, you need to know this: the federal radar is shifting. The Financial Crimes Enforcement Network (FinCEN) is set to require detailed reporting on many residential real-estate transfers before closing. While the effective date has been postponed, the changes are coming—and savvy sellers can avoid surprise delays or liability.

Why it matters

Historically, “all-cash” sales or transfers to trusts or legal entities (rather than individuals) have been hotbeds for money-laundering and illicit financing. FinCEN has been tracking these via Geographic Targeting Orders (GTOs) for certain metros.

Now the scope is broadening. The final rule requires certain “reporting persons” (title companies, closing attorneys, settlement agents) to file a Real Estate Report when a residential property is transferred without a regulated financial institution mortgage and the buyer is an entity or trust.

For sellers, that means your transaction may be subject to extra scrutiny—even if you’re not the buyer.

What sellers should watch for

  • Is the buyer an LLC, trust, corporation or other entity rather than an individual? If yes → higher risk of reporting.
  • Is the property being transferred without a traditional bank-backed mortgage (i.e., all-cash or private financing)? If yes → reporting likely.
  • Does your closing involve a title or settlement agent, or other professional who will be the “reporting person”? If so, they may request extra documentation.
  • Timing & records: The rule requires that reports be filed within the later of (a) the end of the month after closing or (b) 30 calendar days.
  • Documentation retention: The reporting person must retain certifications for five years.

Pre-listing checklist for sellers

  • Ask your listing agent or closing attorney: “Does the buyer entity trigger the new rule?”
  • Ensure you have full, transparent documentation of your own transaction (seller identity, funds of sale, chain of title) to avoid look-back issues.
  • If you’re selling via a trust or entity yourself (rather than a straightforward individual sale), expect the buyer and their professionals to ask questions. Be prepared with proper disclosures.
  • If you’re marketing to cash buyers or investors that use LLCs/trusts, be aware: this may slow closing or require extra compliance steps.

Ask your closing professional how they will handle the “reporting person” designation and timing. Clarify whether you as seller may be asked for extra info.

Why acting now matters

Even though the effective date of some elements has been delayed (see below), the preparation window is now. Title companies, attorneys and escrow professionals are updating forms, shifting workflows and training staff. Sellers who treat this as “just another closing” risk being caught off guard, facing delayed close, additional fees or last-minute hold-ups.

Key timeline note

Originally the rule was scheduled to go live December 1, 2025. However, the rule’s reporting requirements have been postponed until March 1, 2026.

Importantly: the existing GTOs remain in force and enforcement may continue in many jurisdictions.

Thus: selling in late 2025 means you’re operating in a transitional zone—don’t assume “business as usual.”

Bottom line for sellers

If you’re about to list a property, especially one being sold to an entity or trust, or being bought with all-cash, treat your closing as a compliance event. Ask the right questions early. If you anticipate transparency issues, align your team (agent, attorney, title company) now. That way you protect your timeline, reputation—and the transaction itself.

Looking Ahead

Staying Ready in an Uncertain Market

Whether you’re buying, selling, or refinancing, an experienced attorney helps safeguard your transaction. From rate-lock coordination to closing documentation, The Law Office of David R. Rocheford, Jr., P.C. ensures your real estate deal stays on track — no matter what direction the market moves next.

home with for sale sign listed in front

SOURCES

  1. FinCEN Residential Real Estate Rule fact sheet. https://www.fincen.gov/system/files/shared/RREFactSheet.pdf
  2. FinCEN delays implementation until March 2026. https://www.hklaw.com/en/insights/publications/2025/10/fincen-delays-residential-real-estate-transfer-reporting-rule
  3. Insights on real-estate closing professionals’ obligations. https://www.buchalter.com/insights/new-fincen-rule-on-transparency-reporting-in-residential-real-estate-closings
  4. Title industry overview of reporting obligations. https://www.oldrepublictitle.com/title-agents/fincen-reporting

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

LENDERS
BUYERS
SELLERS
REALTORS®
Lenders David Rocheford
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Buyer David Rocheford
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Sellers David Rocheford
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What Could Steer Mortgage Rates This Winter? Four Key Economic Factors to Watch

What Could Steer Mortgage Rates This Winter? Four Key Economic Factors to Watch

Oct 14, 2025 | Mortgage Rates, Mortgage Tips

What Could Steer Mortgage Rates This Winter?

Four Key Economic Factors to Watch

After several years of volatility, mortgage rates have started to stabilize — but that calm may not last long. As the Federal Reserve hints at gradual rate cuts heading into 2026, buyers and sellers are asking the same question: What will steer mortgage rates this winter?

The answer depends on several interconnected forces: inflation trends, Fed policy decisions, bond market activity, and overall economic strength. Understanding how these factors work together can help Massachusetts homebuyers and sellers make informed decisions before closing day.

1. Inflation Surprises

Inflation remains the leading driver behind mortgage rate movements. If inflation continues to cool, borrowing costs are likely to ease further — but any unexpected rise could stall or reverse that progress.

According to Fannie Mae, if inflation spikes again due to energy costs, wage growth, or global tensions, the Fed could delay additional rate cuts, keeping mortgage rates higher for longer.

Attorney’s Insight:

Inflation directly affects loan affordability. Lenders adjust long-term interest rates to offset inflation risk, which means pre-approval numbers can shift quickly. Buyers should stay in contact with both their lender and closing attorney to prevent last-minute surprises in loan terms or payment estimates.

2. Federal Reserve Policy and Rate Cuts

While the Federal Reserve doesn’t set mortgage rates directly, its benchmark rate influences how much banks charge to lend money. If the Fed begins cutting rates in early 2026, mortgage rates could follow — potentially opening a short-term opportunity for lower borrowing costs.

Economic projections from Bankrate suggest rates may hover around 6% through 2026, depending on the pace of these cuts.

Attorney’s Insight:

If you’re under contract during a policy shift, it’s essential to review your rate-lock agreement with your attorney. Adjustments to contract timelines or extensions can prevent financing complications if the market shifts unexpectedly before closing.

3. Treasury Yields and Bond Market Volatility

Mortgage rates generally follow the 10-year U.S. Treasury yield, which reflects investor confidence in the economy. When investors move toward safer assets, yields fall — and mortgage rates often decline shortly after.

However, market volatility can push yields up quickly. According to Wells Fargo, mortgage rates are unlikely to fall dramatically in the short term due to continued uncertainty in bond markets.

Attorney’s Insight:

Even when markets fluctuate, closing deadlines remain fixed. Your attorney ensures financing commitments, loan documents, and escrow transfers stay aligned so market swings don’t derail your closing.

4. Economic Growth and Labor Market Strength

Mortgage rates also reflect the overall health of the U.S. economy. A robust job market and steady GDP growth tend to keep rates elevated because lenders anticipate continued demand for credit.

Conversely, if growth slows, the Fed may act more aggressively to lower rates. Analysts at Norada Real Estate expect gradual rate declines into 2026 as the economy cools.

Attorney’s Insight:

During times of uncertainty, lenders may tighten underwriting requirements. Having a qualified real estate attorney ensures all documentation — from income verification to title clearance — is prepared and submitted correctly to avoid preventable delays.

Looking Ahead

Staying Ready in an Uncertain Market

Analysts predict that 30-year fixed mortgage rates will range between 6.2% and 6.6% this winter, with gradual improvement throughout 2026. Perfectly timing the market is nearly impossible, but preparation can make a major difference.

Whether you’re buying, selling, or refinancing, an experienced attorney helps safeguard your transaction. From rate-lock coordination to closing documentation, The Law Office of David R. Rocheford, Jr., P.C. ensures your real estate deal stays on track — no matter what direction the market moves next.

married couple reviewing data on laptop at kitchen table

SOURCES

Fannie Mae. (2025, August). Mortgage rates expected to move below 6 percent by end of 2026. Retrieved from https://www.fanniemae.com/newsroom/fannie-mae-news/mortgage-rates-expected-move-below-6-percent-end-2026

Bankrate. (2025, July). Housing market 5-year forecast. Retrieved from https://www.bankrate.com/real-estate/housing-market-5-year-forecast/

Norada Real Estate Investments. (2025, June). Mortgage rates forecast for the next 3 years (2025–2027). Retrieved from https://www.noradarealestate.com/blog/mortgage-rates-forecast-for-the-next-3-years-2025-to-2027/

Investopedia. (2025, September). When will mortgage rates drop? Not for years, Wells Fargo says. Retrieved from https://www.investopedia.com/when-will-mortgage-rates-drop-not-for-years-wells-fargo-says-11699703

 

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

LENDERS
BUYERS
SELLERS
REALTORS®
Lenders David Rocheford
LENDERS
Buyer David Rocheford
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Sellers David Rocheford
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When a Home Sale Falls Through: What Massachusetts Buyers and Sellers Can (and Should) Do Next

When a Home Sale Falls Through: What Massachusetts Buyers and Sellers Can (and Should) Do Next

Oct 14, 2025 | Home Building Tips, Home Buyer Tips, Home Buying Tips, Home Closings, Home Mortgage Tips, Home Seller Tips, Home Selling Tips

When a Home Sale Falls Through

What Massachusetts Buyers and Sellers Can (and Should) Do Next

In Massachusetts, even a well-planned home sale can fall apart at the last minute. Financing issues, appraisal gaps, inspection disputes, or sudden buyer’s remorse can bring a transaction to a halt — leaving both sides uncertain about their next steps.

When that happens, knowing your legal rights and obligations becomes critical. A skilled Massachusetts real estate attorney can help you protect your interests, recover deposits, and decide whether to renegotiate or walk away. Here’s what to do if your deal doesn’t close as planned.

1. Review the Purchase and Sale Agreement

The first step after a failed transaction is to review the Purchase and Sale (P&S) Agreement, which outlines the rights, contingencies, and timelines for both buyer and seller.

Most Massachusetts P&S agreements include detailed inspection, appraisal, and financing contingencies that determine whether a deposit is refundable. The Massachusetts Association of Realtors explains that these contingencies act as legal “escape hatches” if specific conditions aren’t met before closing (MAR, 2025).

Attorney’s Insight:

Your attorney can interpret the contract’s fine print and identify whether you’re entitled to a refund or release. Acting quickly helps prevent misunderstandings that could escalate into legal disputes or escrow delays.

2. Handling Deposit (Escrow) Disputes

In most Massachusetts home sales, the buyer deposits earnest money — typically held in an attorney’s escrow account — to show good faith. If the deal collapses, both parties must sign a mutual release authorizing return or forfeiture of those funds.

Without a signed release, the deposit often remains frozen until both sides reach agreement or a court intervenes. The Massachusetts Division of Banks outlines how escrow funds are protected under state trust-account regulations (Mass.gov, 2024).

Attorney’s Insight:

An experienced real estate attorney acts as a neutral fiduciary, ensuring deposits are managed according to Massachusetts law. If one party refuses to sign a release, your attorney can issue a demand letter or pursue mediation before litigation becomes necessary.

3. Inspection Failures and the New Law

Massachusetts’ new home inspection law, effective October 2025, introduced clearer buyer rights and stricter scheduling standards. Under the updated rules, buyers must complete inspections within a defined timeline — and sellers must allow reasonable access or risk violating the agreement.

As detailed in our earlier post, “What Buyers & Sellers in MA Should Expect Under the New Home Inspection Law”, these reforms help reduce last-minute cancellations and ambiguous repair disputes.

Attorney’s Insight:

If an inspection uncovers defects, your attorney can guide you through renegotiation — for example, by drafting an amendment for seller repairs or a price adjustment — or help you properly withdraw without losing your deposit.

4. Benefiting From the New Home Inspection Law

Even after inspections pass, deals can fail when the appraised value comes in below the agreed purchase price. Lenders rarely approve financing that exceeds appraisal value, leaving buyers to cover the gap or renegotiate.

According to Bankrate, appraisal shortfalls are one of the top reasons sales collapse nationwide.

Attorney’s Insight:

Your attorney can prepare an addendum for price renegotiation or an extension allowing time to resolve lender concerns. If financing ultimately falls through, counsel ensures proper documentation is filed so the transaction terminates cleanly.

5. Next Steps: Renegotiate, Release, or Pursue Legal Action

After reviewing all contingencies, your attorney may recommend one of three paths:

  • Renegotiate: Adjust price, closing date, or repair terms to salvage the deal.
  • Mutual Release: End the contract amicably, with a clear escrow disposition.
  • Legal Remedy: If one party breached the contract, a demand letter or small-claims action may be appropriate.

The Massachusetts Trial Court Law Libraries provide guidance on breach-of-contract claims involving real estate transactions (Mass.gov, 2024).

Attorney’s Insight:

The key is acting quickly and documenting every communication. Your attorney ensures all notices and releases are executed properly to protect you from liability.

Closing Thoughts

Turn a Setback Into a Strategy

A failed home sale can feel like a setback, but it doesn’t have to become a legal nightmare. With the right representation, you can recover deposits, avoid costly disputes, and position yourself for the next opportunity.

The Law Office of David R. Rocheford, Jr., P.C. helps buyers and sellers across Massachusetts and New Hampshire navigate escrow disputes, renegotiations, and closing delays with confidence and clarity.

stressed man sitting at a table with paperwork

SOURCES

Bankrate. (2025, July). What happens if a house appraises low? Retrieved from https://www.bankrate.com/

Massachusetts Association of Realtors (MAR). (2025). Standard purchase and sale agreement guidelines. Retrieved from https://www.marealtor.com/

Massachusetts Division of Banks. (2024). Escrow and trust-account regulations for attorneys and brokers. Retrieved from https://www.mass.gov/orgs/division-of-banks

Massachusetts Trial Court Law Libraries. (2024). Real-estate contract disputes and remedies. Retrieved from https://www.mass.gov/orgs/trial-court-law-libraries

The Law Office of David R. Rocheford, Jr., P.C. (2025, September). What buyers & sellers in MA should expect under the new home inspection law. Retrieved from https://www.thebestclosings.com/2025/09/what-buyers-sellers-in-ma-should-expect-under-the-new-home-inspection-law/

 

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

LENDERS
BUYERS
SELLERS
REALTORS®
Lenders David Rocheford
LENDERS
Buyer David Rocheford
LENDERS
Sellers David Rocheford
LENDERS
Realtors David Rocheford
LENDERS
About Us

Recent News

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