FinCEN and Your Closing: What New Reporting Rules Mean for PA & NJ Real Estate

If you're buying or selling property in Pennsylvania or New Jersey and you've heard whispers about new "FinCEN reporting" requirements, you're not imagining things. Starting March 1, 2026 , a new federal rule is changing how certain real estate transactions get reported, and if you're purchasing residential property through an LLC, trust, or other entity without traditional financing, this applies to you.

Before you panic, let's be clear: this isn't something to fear. It's simply additional paperwork designed to keep bad actors from using real estate to hide "dirty money." If you're a legitimate buyer going through proper channels, you'll barely notice the difference, especially when you're working with a title company that knows what they're doing.

What Exactly Is FinCEN?

FinCEN stands for the Financial Crimes Enforcement Network , a bureau within the U.S. Department of the Treasury. Think of them as the federal watchdogs who track financial transactions to prevent money laundering, terrorist financing, and other financial crimes.

You've probably encountered FinCEN rules before without realizing it, like when your bank asks for extra identification when you deposit a large check, or when you fill out forms about where your down payment is coming from. Their job is to make sure the U.S. financial system isn't being used for illegal purposes.

Now, they're extending that oversight into real estate transactions that previously flew under the radar.

Why Real Estate? Why Now?

For years, all-cash real estate purchases, especially those made through anonymous LLCs or trusts, have been a favorite method for money launderers to "clean" illicitly obtained funds. Buy a property with cash through a shell company, hold it for a while, sell it, and suddenly you've got "legitimate" money with a paper trail that looks perfectly legal.

It's been happening in major markets across the country, and federal authorities have been trying to crack down on it for years. Previous efforts included temporary "Geographic Targeting Orders" in high-value markets, but those were limited in scope and duration.

This new rule makes reporting permanent and nationwide . Pennsylvania, New Jersey, and every other state are now included. The goal is simple: shine a light on who's really behind these transactions so criminals can't hide in the shadows.

Does This Affect Your Transaction?

Not every real estate transaction triggers this new reporting requirement. The rule only applies when all four of these criteria are met:

1. The property is residential real estate. This includes single-family homes, townhouses, condos, co-ops, and even unimproved land zoned for residential use. Commercial properties are excluded.

2. The transaction is non-financed. Typically, this means all-cash deals or transactions funded through private loans that don't involve a regulated financial institution. If you're getting a traditional mortgage from a bank or credit union, you're likely off the hook, those lenders already report to FinCEN.

3. The buyer is a legal entity or trust. This includes LLCs, corporations, partnerships, revocable trusts, irrevocable trusts, land trusts, basically anything that isn't a direct purchase by an individual person.

4. No exemptions apply. There are narrow exemptions for transfers due to death, divorce, court orders, bankruptcy, and certain 1031 exchanges. These are evaluated case-by-case.

If your transaction doesn't check all four boxes, you're in the clear. But if you're buying investment property through your LLC with cash or a non-traditional loan? Yeah, this applies to you.

What Information Gets Collected?

Here's where people start to worry, but honestly, this is just information gathering, not an investigation. Before your closing can proceed, the settlement professional handling your transaction needs to collect details about:

• The property itself (address, legal description, standard stuff)
• The buyer entity or trust (legal name, any trade names, tax identification number)
• Beneficial owners of that entity or trust, meaning the actual human beings who own or control it (names, addresses, dates of birth, Social Security or tax ID numbers)
• Individuals representing the entity in the transaction
• The seller's information

That "beneficial ownership" piece is the new part. FinCEN wants to know who the real people are behind the corporate veil. If your LLC is owned by another LLC, they want to know who ultimately controls that entire structure.

This information needs to be collected before closing , not after. Missing or incomplete information can delay everything, which is why it's crucial to work with a title company that has their systems dialed in.

Who's Responsible for Reporting?

Here's the good news: this isn't your responsibility as the buyer or seller . The reporting obligation falls on the closing and settlement professionals, typically the title agent, settlement agent , or attorney handling the transaction.

Only one report is required per transaction, so if multiple professionals are involved, they can agree in writing on who submits it. But you, the client, don't have to navigate the federal reporting portal or worry about deadlines. That's what you're paying your settlement team to handle.

The Timeline: When Does Reporting Happen?

Reports must be filed by the last day of the month following closing, or 30 days after closing, whichever gives more time . So if you close on March 15, the report would be due by April 30 (the end of the following month). If you close on March 5, it's due by April 4 (30 days later).

This gives your settlement professional a reasonable window to compile everything and submit the report electronically. They're also required to keep copies on file for five years, just like they do with other closing documents.

How American National Land Transfer Handles This for You

At American National Land Transfer , we've been preparing for this rule for months. Our team has updated our closing checklists, trained our staff, and integrated the necessary information-gathering steps into our standard workflow.

Here's what that means for you:

Early communication. If your transaction triggers FinCEN reporting, we'll let you know upfront, no surprises at the closing table. We'll explain exactly what information we need and when we need it.

Streamlined collection. We've created simple forms and secure processes for collecting beneficial ownership information. You'll fill out what we need, provide supporting documentation (like driver's licenses), and we'll handle the rest.

No closing delays. Because we're collecting this information during the transaction, not scrambling for it afterward, your closing stays on track. We build the extra time into our workflow so you're not left waiting.

Confidentiality and security. We understand that ownership structures often exist for legitimate privacy, estate planning, or liability reasons. The information you provide is transmitted securely to FinCEN and protected under federal law. We treat your data with the same care we apply to all closing documents.

What You Need to Do

If you're buying residential property in PA or NJ through an entity or trust, here's your action plan:

Be responsive. When your title company (hopefully us!) reaches out for beneficial ownership information, provide it quickly. The faster we get what we need, the smoother your closing proceeds.

Gather your documents. Have your entity formation documents, trust agreements, and personal identification ready. Know who your beneficial owners are, this is usually straightforward, but complex ownership structures may require some homework.

Ask questions early. If you're unsure whether your transaction triggers reporting, or if you're not sure who counts as a "beneficial owner," ask your settlement team before you get too far down the road.

Don't stress. Seriously. This is administrative, not adversarial. If you're a legitimate buyer using proper channels, this is just one more form in a stack of closing paperwork.

Looking Ahead

Real estate transactions are already paperwork-heavy, and yes, this adds one more layer. But transparency in real estate ultimately benefits everyone: it protects property values, supports market integrity, and keeps criminals from distorting the market with illicit cash.

As March 1 approaches, you'll likely hear more about FinCEN reporting from real estate attorneys, agents, and title companies across Pennsylvania and New Jersey. The industry is adapting quickly, and established title insurance providers like American National Land Transfer are leading the way.

If you have a closing coming up and you're wondering whether this applies to your transaction, or if you just want to understand what to expect, reach out to our team. We're here to guide you through every aspect of your closing: including the new stuff that wasn't around last year.

Because at the end of the day, this is what we do: we handle the complicated paperwork so you can focus on what really matters: getting the keys to your new property.

Questions about your upcoming closing or how FinCEN reporting might affect your transaction? Contact American National Land Transfer today. We're here to make your real estate transaction as smooth as possible, new federal rules and all.