By Danielle Vaughn, Board Certified Real Estate Attorney
The New FinCEN Rule—What Home Buyers and Sellers Need to Know (Without the Headache!)
There’s a new federal rule from FinCEN (the government’s financial crime unit), and it affects some real estate deals. The goal is simple: stop bad actors from hiding money in real estate.
Here’s what matters to you.
A deal may need to be reported if it is a cash (non-financed) transfer of a home to a company or trust. This includes sales, gifts, or other transfers where ownership changes and is recorded by a deed. If a business or trust is listed as the buyer, the rule might apply.
So, who handles the paperwork?
Usually, it’s the closing professional, like the title company, attorney, or settlement agent. If there isn’t one, then the responsibility can fall to the person preparing the deed. Only one person has to file the report.
Now, the good news: many common transfers do NOT need to be reported. These include:
- Transfers after someone passes away
- Transfers due to divorce
- Transfers handled by a court
- Transfers to a bankruptcy estate
- Certain trust transfers with no money involved
- 1031 exchanges
- Easements
Every deal is a little different, so the details matter.
If you are buying or selling a home, there may be extra steps or costs at closing because of this rule.
The bottom line: this isn’t something you want to guess your way through.
Let Vaughn Law handle your transaction or property transfer to make sure any required FinCEN filings are done correctly, and that nothing gets missed.
Have questions? We’re here to help.
Vaughn Law, PLLC
350 Corey Ave., St Pete Beach, FL 33706
727-223-6080
www.dvaughnlaw.com