Lisa and the Law

FinCEN’s Residential Real Estate (RRE) rule is in effect.

The RRE went into effect on March 1, 2026. This rule requires that non-financed residential real estate transfers (all cash deals, gifts or other transfers) to trusts, LLCs and some other business entities must be reported to the Financial Crimes Enforcement Network (FinCEN – a bureau of the U.S. Department of Treasury). There are exceptions to the reporting requirements for transfers of residential property to a revocable living trust, transfers based on a divorce decree or transfers occurring because a property owner has died. However, if you are transferring residential property into an LLC (even if you are the single member of the LLC), your transaction will need to be reported to FinCEN. Contact your qualified business law attorney (or me) if you need more information. The first reports for transfer of property subject to the RRE will be due April 30, 2026.