Lisa and the Law

FinCEN’s Residential Real Estate (RRE) reporting rule – Who files the RRE report?

Only “reporting persons” file the RRE report with FinCEN. Generally, the closing/settlement agent on the deal or the title insurance company are responsible for filing the RRE report with FinCEN. However, if there is not a settlement/closing agent or another real estate professional in FinCEN’s list of designated reporting persons involved, the responsibility falls to the professional who prepares the deed transferring the property. This encompasses attorneys preparing deeds for their clients to transfer their property to an LLC. Any transfer of property by an individual to a revocable living trust where that same individual are the settlors/grantors of the trust is exempt from filing a RRE. For additional information on the RRE reporting requirements, go to www.fincen.gov and look at the RRE FAQs.