WFG’s Don O’Neill on FinCEN, rate scrutiny and title compliance
Summary
This article discusses changes to anti-money laundering regulations impacting real estate transactions, specifically focusing on FinCEN reporting requirements. Hosts should be aware of these changes, as they can affect how LLCs and other entities are reported during transactions. Failing to comply can lead to legal issues.
Key Insights
- •Texas implemented a 10% reduction in title premiums mid-year, which was later reduced to 6.2%. This change will become effective in March of the next year. California is seeking more justification on rate filings.
- •The rule regarding FinCEN's reporting requirements became effective December 1, 2025, but reporting is not required until March 1, 2026.
- •The FinCEN reporting threshold for real estate transactions dropped from $3 million to $300,000, and now requires reporting on the first dollar.
Action Items
- ✓If you use an LLC, corporation, or trust to purchase your rental properties, familiarize yourself with the FinCEN reporting requirements and be prepared to provide ownership information to settlement agents.Effort: lowImpact: medium
Common Mistakes
- ⚠Failing to comply with FinCEN reporting requirements on real estate transactions can lead to legal issues.
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