FinCEN Real Estate Report: Verifying the Buyer and Seller Before Closing

FinCEN's residential real estate rule turned title and settlement agents into data collectors. Since March 1, 2026, non-financed transfers of residential property to an entity or trust are reported with names, TINs and addresses for every party, and bad data is the reporting person's problem.

Updated October 28, 2026.

What the Rule Requires

The rule took effect March 1, 2026 and replaced the earlier geographic targeting orders with a nationwide requirement. A Real Estate Report is required when:

  • Residential real property is transferred (one to four family homes, condos, co-ops, and land intended for residential construction)
  • The transfer is non-financed, meaning no loan from a lender subject to anti-money-laundering program requirements
  • The buyer is an entity or a trust
  • No exception applies

There is no dollar threshold. The reporting person is determined by a cascade, and in most transactions it is the title company or settlement agent handling the closing. The report is due by the later of the last day of the month following closing or 30 days after closing.

Key takeaways

  • The rule catches non-financed transfers of residential property to entities and trusts nationwide, with no dollar threshold.
  • The reporting person, usually the settlement agent, is responsible for the data on the report, so verification belongs before closing.
  • Use IRS TIN Matching for the seller you will issue a 1099-S to, and an EIN lookup for the buyer entity you are not paying.
  • Screen every party, including beneficial owners and signers, against sanctions lists in one pass.
  • Keep the verification results with the buyer's certification, which must be retained for five years.

The exceptions are where most of the judgment calls happen. The table is a summary, not a substitute for the rule text.

Transfer Reportable?
Cash purchase of a house by an LLC, corporation or trust Yes
Purchase by an individual in his or her own name No; the rule covers entity and trust buyers only
Purchase financed by a bank or other lender that has an AML program No
Purchase financed by seller financing or a private lender with no AML program Yes, if the buyer is an entity or trust
Transfer by an individual to a trust the individual or a spouse settled, for no consideration No, generally
Transfer resulting from death, divorce or dissolution, a court order, or into a bankruptcy estate No, generally
Transfer to a qualified intermediary as part of a like-kind exchange Exception applies to that step
Buyer is a listed exempt transferee (for example a securities reporting issuer, a bank, a government authority or a registered insurer) No

What Gets Collected on Each Party

Party What the report needs
Buyer entity (transferee) Legal name, address, TIN
Beneficial owners of the buyer Name, date of birth, residential address, citizenship, TIN or passport number
Signers Individuals who signed on the buyer's behalf
Seller (transferor) Name, address, TIN
Payment Total consideration, payment method, financial institution details

The buyer's beneficial ownership information is usually certified by the buyer, and that certification must be kept for five years.

What to Verify, and With Which Tool

Not every verification tool fits every party. The right tool depends on whether you're paying that party.

The seller: IRS TIN Matching In most closings, the settlement agent also files Form 1099-S for the seller. That makes the seller a reportable payee, which is exactly what IRS TIN Matching is for. Confirming the seller's name and TIN against IRS records before closing protects both the 1099-S and the Real Estate Report. A code 3 (name and TIN do not match IRS records) found at order opening is a phone call; the same mismatch found after the 1099-S is filed is a CP2100 notice a year later.

The buyer entity: EIN lookup and company details The buyer isn't receiving a reportable payment from you, so IRS TIN Matching isn't the right tool. An EIN lookup confirms that the EIN the buyer provided is associated with the entity name on the purchase documents, and catches an LLC that gave a DBA, a parent's EIN, or a typo. Company details lookup adds registration status and address.

Everyone: sanctions screening The buyer entity, its beneficial owners, signers and the seller can all be screened against OFAC and other sanctions lists in the same pass. (For how screening and the 50% ownership rule work, see Sanctions Screening: How It Works.) A non-financed purchase through an entity is the pattern the rule was written to surface, so a sanctions hit is worth knowing before the money moves.

Addresses Every party on the report needs an address. Standardizing and validating them before submission avoids returned mail and reporting errors.

A Workflow That Fits the Closing Timeline

  1. At order opening: flag transactions that may be reportable (entity or trust buyer, no institutional lender)
  2. When the buyer's certification arrives: look up the buyer entity's EIN and confirm the legal name matches the purchase contract
  3. Screen all parties: buyer entity, beneficial owners, signers and seller against sanctions lists
  4. Verify the seller's TIN: run IRS TIN Matching on the seller's name and TIN, the same data the 1099-S needs
  5. Validate addresses for every party
  6. Resolve exceptions before closing: a mismatched EIN or a sanctions hit is much easier to address before funds are disbursed
  7. File the report within the deadline and keep the verification results with the certification for your records

How TIN Comply Helps

TIN Comply runs the verifications in one platform, by single check, bulk file or API:

Every result is logged with a timestamp and exportable, so the verification record sits alongside the beneficial ownership certification. TIN Comply verifies the data. It does not prepare or file the Real Estate Report.

See how this fits real estate closings on the Real Estate industry page, or start a free trial.

Bottom Line

The Real Estate Report is only as good as the data behind it. Use IRS TIN Matching for the seller you'll issue a 1099-S to, EIN lookup for the buyer entity, and sanctions screening for everyone, and do it before closing rather than after.

This article is for informational purposes only and does not constitute legal or tax advice. Consult a qualified professional for guidance on FinCEN reporting obligations.