Albuquerque Real Estate | Venturi Realty Group

⚠️ Important Disclaimer

This summary is provided for general informational purposes only and is not intended as legal advice. Buyers, Sellers, and Real estate professionals should not rely on this material as a substitute for professional legal counsel.

For complete details and official guidance, please visit FinCEN’s Residential Real Estate Reporting page. Always consult with a qualified real estate attorney or compliance professional regarding how the rule applies to specific transactions.

FinCEN Residential Real Estate Reporting

Effective December 1, 2025

Overview

FinCEN requires reporting of certain residential property transfers to deter money laundering. Your job: spot reportable deals early and prep clients. All three conditions below must be met.

1 Property Type

  • 1–4 unit residential (SF/Duplex/Triplex/Fourplex)
  • Condo / Townhome / Co-op
  • Residential land (intended 1–4)
  • Mixed-use with residential
Exclude: pure commercial and 5+ unit apartment buildings.

2 Buyer Type

Must be a legal entity or trust (not a natural person)
  • LLC / Corporation / Partnership
  • Trusts (family, land, business, statutory)
  • Nonprofit / Foundation / Offshore entity

3 Financing

No regulated lender in the deal
  • All-cash
  • Seller financing
  • Private / hard-money
  • Crypto
  • Trade/Barter
“Non-financed” means no lender with both an AML program and SAR duties; private/hard-money may still be reportable.

What Buyers Must Provide (to Reporting Person)

Entity / Trust Identification

  • Legal name, jurisdiction, EIN (if any)
  • Formation docs (Articles/Operating Agreement; Trust Agreement excerpt)
  • Business address and primary contact
  • Who is signing (authority docs or resolution)

Beneficial Ownership & Signers

  • Beneficial owners (≥25% or substantial control): full name, DOB, residential address
  • ID for each (gov’t photo ID number + issuing jurisdiction)
  • TIN (or foreign equivalent)
  • Trusts: trustee(s), grantor (if revocable), any sole-perm. beneficiary
  • Signer identity and authority

Transaction & Funds

  • Property address & legal description
  • Total consideration (price/value, even for trades/gifts)
  • Payment rails: wires, accounts used, crypto wallet details

Certifications & Contacts

  • Written certification that info provided is true/complete
  • Contact for follow-ups (counsel or authorized rep)
  • Any designation agreement (who files the report)
Note: The “reporting person” is identified by FinCEN’s cascade (often the settlement/closing agent) or by written designation. They may reasonably rely on the buyer’s certification.

Who Files the Report? (Cascade)

  1. 1. Settlement agent (on statement)
  2. If none → 2. Title insurer/underwriter.
  3. If none → 3. Escrow funds disburser.
  4. If none → 4. Evaluates title.
  5. If none → 5. Prepares deed.
  6. If none → 6. Records deed.
  7. If none → 7. Prepares closing statement.
If none of these functions occur, the transfer is not reportable.

Is Reporting Required Decision Tree

Step 1
Is this a residential property transfer?
Count it as residential if:
1–4 unitsCondoTownhomeCo-opResidential land (1–4)Mixed-use if primary is residential
Exclude: pure commercial and 5+ unit apartment buildings.
Step 2
Is the buyer a legal entity or trust (not an individual)?
Entities/Trusts include LLCs, corporations, partnerships, nonprofits, foundations, offshore entities, and trusts.
If the deed is in a natural person’s name, answer NO.
Step 3
Is there no regulated lender (bank/credit union/mortgage company)?
All-cashSeller financingPrivate lenderCryptoTrade
If a bank/credit union/mortgage co. makes the loan, it’s not reportable.
Reporting Required
Prep buyer (entity/trust) to provide beneficial owner details, signer ID/authority, property & funds data.
No Reporting Required
One or more conditions not met (or regulated financing present).

Common Carve-Outs (Not Reportable)

  • Transfers due to death or divorce
  • Court-supervised or bankruptcy transfers
  • Individual → own revocable trust with no consideration
  • 1031 transfer to a qualified intermediary
  • No reporting person per the cascade (rare)
  • Entity reorganizations
  • Additions/removals from trusts (no payment)

Report Required

  • LLC buys SFR all-cash
  • Family trust with seller financing
  • Entity uses private/hard-money loan
  • Trust buys with crypto
  • Entity-to-entity trade/barter

No Report

  • Individual buyer, even all-cash
  • Any buyer with bank/credit-union/mortgage financing
  • Purely commercial property (no residential)
Filing due by no later than 30 days post-closing. Retain certifications/designations 5 years. Reports go to FinCEN and are not public.