We are pulling back the curtain on how — and why — federal agencies like FinCEN, the FBI, Homeland Security, IRS-Criminal Investigations (IRS-CI), and CFIUS monitor real estate transactions in the U.S.Whether you're buying with cash, investing from abroad,...
Is Big Brother Watching Your Home Sale? What Buyers and Sellers Should Know About Federal Oversight
Is Big Brother Watching Your Home Sale?
What Buyers and Sellers Should Know About Federal OversightFrom anti-money laundering orders to foreign land purchase scrutiny, here’s how U.S. agencies monitor real estate transactions — and when it matters to you.
If you’re buying or selling a home, you might assume it’s a personal, private transaction — just you, your agent, and the closing attorney. But in certain cases, federal agencies like FinCEN, Homeland Security, and even the FBI are quietly watching the real estate market.
This isn’t a reason to panic, but it is worth understanding. Here’s how — and why — the government may be involved in your next transaction:
Anti-Money Laundering: FinCEN’s Role in Real Estate
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) monitors real estate deals in specific high-risk areas to crack down on money laundering through all-cash home purchases.
- These regulations apply in select cities through Geographic Targeting Orders (GTOs).
- They require title companies to report the beneficial ownership of entities buying real estate in cash over certain thresholds.
- As of 2024, targeted areas include New York, Miami, San Diego, Los Angeles, San Francisco, and Boston.
CFIUS and Foreign Buyers: National Security Meets Real Estate
The Committee on Foreign Investment in the United States (CFIUS) has expanded its oversight to include foreign real estate purchases near sensitive sites, like military bases and ports.
- Under the Foreign Investment Risk Review Modernization Act (FIRRMA), CFIUS can now review real estate deals — even when no company is being acquired.
- In 2023, the Air Force raised national security concerns after a Chinese firm purchased land near a base in North Dakota.
Immigration Status & Mortgage Oversight
Mortgage lenders are required to verify a borrower’s identity and legal status — and that can intersect with immigration records. While not a direct Homeland Security audit, your file could draw attention if:
- False immigration documents are used
- Fraud is suspected on the loan application
- You’re applying for a government-backed loan, like FHA or VA
FBI & IRS Involvement: When Real Estate Becomes a Red Flag
The FBI and IRS-Criminal Investigations (CI) monitor patterns that may suggest:
- Title fraud or forged documents
- “Straw buyer” schemes where someone falsely claims to be the primary buyer
- Real estate used to hide unreported income or launder money
These agencies don’t monitor every deal, but they do act when something doesn’t add up.
What This Means for You
Most buyers and sellers won’t hear from a federal agency during a transaction — but in today’s security-conscious landscape, transparency and legal compliance matter more than ever.
- Selling to a foreign investor? Disclose clearly and understand CFIUS boundaries.
- Buying in cash with a trust or LLC? Expect extra scrutiny in some cities.
- Applying for a mortgage? Make sure your documentation is accurate and legal.
As always, work with a reputable closing attorney and disclose honestly — it’s the best way to keep your deal (and your name) off anyone’s watchlist.
Want to Make Sure Your Deal Is Air-Tight?
Whether you’re buying or selling, we help you cover every angle — from contract review to full closing services. At The Law Office of David R. Rocheford, Jr., P.C., we work to keep your transaction compliant, smooth, and secure from start to finish.
Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire
From Our Clients
“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”
“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
Recent News
Federal Eyes on Real Estate: A 4-Part Insider’s Guide for Buyers and Sellers
Follow the Money: How the IRS Tracks Financial Crimes Through Real Estate
From Unreported Income to Shell Game Schemes — What IRS-CI Is Looking ForYour Closing Could Be an Audit Trigger — Here's How the IRS Sees It When most people think of the IRS, they imagine audits and paperwork — not criminal agents working alongside the FBI and...
Caught in the Crosshairs? What Triggers Federal Interest in Your Home Sale
The Top Red Flags That Could Invite a Closer Look from WashingtonCash, LLCs, or Land Near a Base? You Might Just Be a Target In today’s security-conscious environment, real estate deals aren’t just between buyers and sellers — they’re being watched, analyzed, and...
