A new federal reporting requirement for certain residential real estate transfers that was to take effect on March 1 has been vacated.
The federal judge’s decision to vacate the new FinCEN rule has implications for businesses and they should plan for what might come next.
In a recent decision out of the Eastern District of Texas, a federal judge has vacated the new FinCEN reporting rule for non-financed residential real estate transactions to entities/trusts and enjoined its enforcement nationwide (Flowers Title Companies, LLC v Bessent, No. 6:25-CV-127-JDK, 2026 WL 782283 [E.D. Tex. Mar. 19, 2026]). We covered the rule in this February 19th legal alert.
The Judge agreed with plaintiffs that FinCEN exceeded its mandate under the Bank Secrecy Act on the grounds that non-financed residential real estate transactions to entities/trusts were not inherently “suspicious.” This decision does not impact the longstanding Geographic Targeting Orders effectuated after 9/11, reporting under those orders remains in effect. We will continue to monitor any additional developments with this reporting rule. Should you have questions, please contact a member of our Commercial Real Estate Practice Group, including attorney Charles (Chip) W. Russell at (585) 419-8635 and crussell@harrisbeachmurtha.com; attorney Aurora Mali Perry at (716) 200-5124 and aperry@harrisbeachmurtha.com; attorney Molly A. Sleiman at (716) 200-5115 and msleiman@harrisbeachmurtha.com;or the Harris Beach Murtha attorney with whom you most frequently work.
This alert is not a substitute for advice of counsel on specific legal issues.
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