For years, FinCEN compliance in New York real estate transactions lived in a relatively small box. It applied primarily to all cash deals, above certain dollar thresholds, and only in specifically designated counties. In practice, this meant that many transactions never triggered reporting requirements, and FinCEN was often treated as a niche issue rather than a routine part of the closing process.
That framework is about to change in a meaningful way.
Effective March 1, 2026, FinCEN’s new residential real estate reporting regulations at 31 C.F.R. § 1031.320 will dramatically expand both the scope and frequency of required reporting. These changes will affect title companies, attorneys, settlement agents, and other professionals involved in residential real estate transfers across New York State.
How FinCEN Is Changing the Rules
Under the prior system, FinCEN’s authority was exercised largely through Geographic Targeting Orders. In New York, that meant a focus on the five boroughs and transactions above a minimum purchase price. Lower value transactions, no consideration transfers, and deals outside designated counties often fell outside FinCEN’s jurisdiction.
FinCEN has made clear that it views this selective approach as leaving significant gaps. The new regulations are designed to create consistent transparency nationwide, regardless of geography or price point.
One of the most significant changes is the elimination of the minimum transaction threshold. Previously, residential transactions below $300,000 generally were not subject to reporting. Under the new rules, price is no longer a limiting factor. Even transfers involving no consideration may be reportable if the other criteria are met.
Geographic limitations are also being removed. Reporting obligations will apply statewide, not just in New York City. Transactions in Long Island, Westchester, and upstate counties will now be treated the same as those in Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. County based exemptions will no longer apply.
While non financed and cash transactions remain a core focus, FinCEN’s emphasis has shifted more decisively toward identifying beneficial ownership. Transactions involving LLCs, trusts, and other legal entities will receive heightened scrutiny, particularly where ownership structures obscure the individuals who ultimately control or benefit from the property.
The stated intent is to promote transparency in real estate ownership itself, rather than forcing transacting parties to infer risk based solely on price, location, or payment method.
Which Transactions Will Trigger Reporting
A FinCEN Real Estate Report will be required when a residential real property is transferred, the transaction is non financed or financed by a lender that is not required to maintain an anti money laundering (AML) program, and title is transferred to an entity or trust, provided no exemption applies.
For purposes of the regulations, residential real property includes one to four family dwellings, residential condominiums, cooperative apartments, and mixed use properties that include one to four family residences.
Most private lenders and hard money lenders that are not regulated by the FDIC or another governmental authority with AML oversight will generally be treated as non financed for reporting purposes. Where there is uncertainty about a lender’s regulatory status, FinCEN expects that the lender will be contacted directly to confirm whether it is obligated to maintain an AML program and file Suspicious Activity Reports.
The Reporting Cascade and Who Is Responsible
The regulations establish a defined reporting cascade that determines who bears the legal obligation to file the FinCEN Real Estate Report. Responsibility falls first to the person or entity identified as the closing or settlement agent on the settlement statement. If no such agent is involved, the obligation shifts to the party that prepares the settlement statement. If neither applies, responsibility rests with the party that records the deed or other transfer instrument.
The first party in that cascade that is involved in the transaction carries full legal responsibility for compliance.
This structure places title companies and settlement agents squarely at the center of FinCEN compliance for a large number of residential transactions.
Beneficial Ownership and Information Collection
The reporting party must collect and submit sufficient information to identify the reporting entity, the property, the transferor, and the transferee entity or trust. This includes detailed beneficial ownership information for individuals who exercise substantial control over, or own twenty five percent or more of, a transferee entity.
In the case of trusts, the definition of beneficial owner extends beyond trustees to include individuals with authority to dispose of trust assets, certain beneficiaries, grantors with revocation rights, and individuals who control entities that occupy any of those roles.
Required information includes full legal names, dates of birth, residential addresses, citizenship, and taxpayer identification numbers. There will be little tolerance for incomplete or last minute disclosures, particularly given the civil and criminal penalties associated with noncompliance.
What This Means for New York Title Companies and Industry Partners
These changes materially increase compliance obligations for New York title companies and raise expectations for everyone involved in residential real estate closings. Proactive due diligence will no longer be optional. Title companies that rely on reactive workflows or late stage document collection are likely to experience delays, increased risk, and heightened exposure. At Cornerstone, FinCEN compliance is treated as an integrated part of the closing process, not a last minute overlay.
For attorneys, brokers, and lenders, this environment makes the choice of title company more consequential than ever. Working with a title partner that understands FinCEN’s expanded requirements and builds them directly into its operational workflow reduces the risk of last minute disruptions and compliance failures. Cornerstone’s in house legal and compliance experience allows these requirements to be identified and addressed well before a closing date is on the calendar.
Early involvement by a knowledgeable title company allows for timely identification of reportable transactions, clear guidance on required documentation, realistic closing timelines, and reduced risk for all parties involved. Cornerstone’s approach emphasizes early engagement, clear communication, and disciplined review, helping transactions move forward smoothly even as regulatory expectations continue to increase.
Preparing for FinCEN Changes
The new FinCEN regulations are not theoretical. They are finalized, nationwide, and fast approaching. Industry professionals should be reviewing internal procedures now, assessing how entity and trust based transactions are handled, and identifying gaps in current workflows.
Title companies with experienced internal review processes and a proactive compliance culture will be best positioned to navigate this shift. For their partners, aligning with such a title company is no longer just a service decision. It is a risk management decision.
Early preparation and the right professional partnerships will make the difference between smooth, compliant closings and avoidable delays once these rules take effect.
