FinCEN Postpones Residential Real Estate Reporting Requirements

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has announced a postponement of the reporting requirements under the Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule (RRE Rule) until March 1, 2026. This decision, detailed in FinCEN's official press release issued today, seems to reflect a commitment to easing compliance burdens on businesses while maintaining robust safeguards against money laundering, terrorist financing, and other illicit financial activities that threaten the integrity of the U.S. financial system.

As a Florida-based law firm deeply embedded in the real estate sector—handling everything from title services to complex transactional counsel for small and mid-sized businesses—we view this extension as a practical win for our clients. Florida's real estate market, one of the most dynamic and high-volume in the nation, relies on efficient closings and streamlined processes to keep deals moving. The original RRE Rule, finalized in 2024, would have imposed new beneficial ownership reporting obligations on certain non-financed residential real estate transfers involving cash or other non-traditional payments. These requirements targeted transfers in specific high-risk areas, including much of South Florida, to close loopholes exploited by anonymous shell companies.

Understanding the RRE Rule and Its Original Timeline

To fully appreciate the significance of this postponement, it's essential to recap the RRE Rule's framework and intent. Enacted as part of broader anti-money laundering (AML) reforms under the Corporate Transparency Act and related initiatives, the rule mandates that reporting persons—typically the closing attorneys, title agents, or other settlement agents involved in residential real estate transfers—submit beneficial ownership information to FinCEN for transactions that meet specific criteria:

Property Type

Single-family homes, condominiums, and certain multi-family residential properties (up to four units)

Payment Method

All-cash purchases or transfers financed without traditional institutional lenders (e.g., private financing or cryptocurrency).

Geographic Scope

Initially focused on areas covered by existing Geographic Targeting Orders (GTOs), such as Miami-Dade, Broward, and Palm Beach Counties in Florida, where anonymous purchases have historically raised red flags for illicit finance.

Reporting Details

Information on the beneficial owners (individuals with 25% or more ownership or substantial control), including names, addresses, dates of birth, and identification numbers, filed via FinCEN's new Residential Real Estate Report Form (RER Form).

Under the original schedule, reporting was set to commence on December 1, 2025, with a grace period for the first 30 days. Non-compliance could result in civil penalties up to $10,000 per violation, plus potential criminal liabilities for willful failures. For Florida's title industry, already navigating a labyrinth of state-specific regulations under Florida Statutes Chapter 626 and federal rules like the Real Estate Settlement Procedures Act (RESPA), this added a layer of complexity that threatened to slow closings and increase costs

The Postponement: Details and Rationale

FinCEN's temporary order, issued on September 30, grants exemptive relief from these reporting deadlines, pushing full implementation to March 1, 2026. This six-month delay aligns with the current Administration's regulatory agenda to minimize unnecessary burdens on American businesses, as articulated in recent executive orders and Treasury guidance. Key highlights from the announcement include: 

Exemptive Relief

A formal order exempting covered persons from RRE Rule reporting until the new date, ensuring no penalties accrue during the interim period.

Continued Enforcement of GTOs

Existing Real Estate Geographic Targeting Orders, which require enhanced due diligence in high-risk jurisdictions like South Florida, remain fully in effect. These GTOs, renewed annually, already compel title companies to identify and verify beneficial owners in cash deals, providing a baseline of AML protection.

Industry Preparation Time

The extension allows real estate professionals, software providers, and compliance teams additional time to integrate the RER Form into workflows, train staff, and develop systems for accurate beneficial ownership verification without disrupting market momentum.

This isn't an outright repeal—FinCEN has emphasized that the rule's core objectives remain unchanged. The postponement is a targeted response to feedback from stakeholders, including the American Land Title Association (ALTA) and Florida's real estate bar, who highlighted logistical challenges in scaling up reporting infrastructure nationwide.

You can access the full Exemptive Relief Order here and the RER Form here for immediate reference.

Implications for Florida Real Estate Transactions

Florida's real estate ecosystem—fueled by international buyers, seasonal investors, and a booming luxury market—stands to benefit disproportionately from this delay. Our state processes over 1.2 million residential closings annually, many involving cash transactions that could have triggered RRE reporting. Without this extension, title agents in GTO-covered counties might have faced a scramble to retrofit compliance protocols, potentially leading to:

Delayed Closings

Increased scrutiny at settlement could add days or weeks to transaction timelines, frustrating buyers and sellers in a competitive market.

Elevated Costs

Third-party verification services for beneficial ownership could inflate closing fees by 10-20%, passed on to consumers, and eroding affordability in already pricey areas like Miami and Orlando suburbs

Compliance Risks

Errors in initial filings might invite audits or penalties, diverting resources from core business operations.

For our clients, this buys critical time to audit internal processes. It also underscores the value of proactive counsel: even with GTOs in place, enhanced due diligence now can future-proof your operations against the inevitable rollout. From a broader policy perspective, this move reinforces Florida's position as a pro-business state.

Practical Steps for Florida Real Estate Professionals

To help you capitalize on this postponement, here are actionable best practices tailored to Florida's unique landscape:

Conduct a Compliance Gap Analysis

Review your current GTO protocols against the forthcoming RER requirements. Identify gaps in beneficial ownership collection—such as integrating ID verification tools compliant with Florida's electronic notarization standards (F.S. § 117.021)—and prioritize remediation before March 2026.

Update Client Agreements and Disclosures

Revise purchase contracts, closing instructions, and RESPA disclosures to include provisional language on potential future reporting. This transparency builds trust and mitigates disputes. For example, include a clause notifying parties that "additional federal reporting may apply to cash-financed transfers post-March 1, 2026, subject to FinCEN guidelines."

Invest in Training and Technology

Leverage the delay to train staff via FinCEN's free resources or ALTA webinars. Consider adopting AML software that automates RER Form population, ensuring HIPAA-level data security for personal information (aligning with Florida's data breach notification laws under F.S. § 501.171).

Monitor Geographic Updates

FinCEN may expand GTO coverage; stay vigilant through subscriptions to the Federal Register or our firm's alerts. South Florida's ongoing vulnerability to real estate-based money laundering (as noted in the 2024 National Money Laundering Risk Assessment) makes this especially pertinent.

Engage Fractional Counsel Early

Don't wait for March. Our Fractional Counsel Program offers on-demand AML advisory, customized to your volume—whether you're closing 50 deals a month or scaling to 500. We've helped Central Florida firms reduce compliance overhead by 30% through tailored playbooks

Document Everything

Maintain meticulous records of due diligence efforts under GTOs, as these will inform RRE compliance. Use timestamped digital trails to demonstrate good faith, shielding against future enforcement actions.

By implementing these steps now, you'll not only meet the new deadline but position your business as a leader in ethical, efficient real estate practices.

Looking Ahead

This postponement is a reminder that regulatory landscapes evolve, and adaptability is the hallmark of success in Florida real estate. While FinCEN's focus on illicit finance continues, the emphasis on burden reduction signals a more collaborative approach with industry partners. At Munizzi Law Firm, we're committed to being a partner with real estate professionals and participants alike. If you need our assistance on your next transaction or closing, we’re here to help—give us a call today.

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