On March 19, 2026, a federal district court in Texas issued a ruling vacating the Financial Crimes Enforcement Network (“FinCEN”) Residential Real Estate Rule, which went into effect on March 1, 2026.
The Residential Real Estate Rule was enacted by FinCEN in order to mitigate the risk of money laundering in residential real estate transactions. The Rule required federal reporting of certain non-financed residential real estate transactions involving a legal entity or trust as the buyer.
The U.S. District Court for the Eastern District of Texas held that in enacting the Residential Real Estate Rule, FinCEN exceeded the authority granted to it by the Bank Secrecy Act, and the Court ordered that the Residential Real Estate Rule be vacated. FinCEN acknowledged the Court’s ruling and has updated its website to reflect that filing a real estate report is not a requirement at this time.
The Buckingham Real Estate Practice Group will continue to monitor this case and any other developments with respect to the Residential Real Estate Rule. Should you have any questions about these recent developments or your obligations under the Rule, please contact us at your earliest convenience.
