Seller

March 01, 2026

By Rebecca Sabot, Real Estate Agent
Copyright 2026 Rebecca Sabot. All rights reserved.

If you are planning to sell your home in 2026, there is one more closing detail worth knowing about.

Beginning March 1, 2026, certain residential real estate transactions must be reported to the U.S. Treasury Department’s Financial Crimes Enforcement Network, also called FinCEN. This is part of a new federal reporting requirement involving certain non-financed transfers of residential real estate.

Before anybody panics and starts imagining a mountain of federal forms taller than a split-entry foyer, here is the good news: this does not apply to every home sale. FinCEN says the rule generally applies only when all of the following are true: the property is residential real estate, the transfer is non-financed, the buyer is a qualifying legal entity or trust, and no exemption applies. Transfers made directly to an individual are generally not covered by this rule. That means many traditional home sales will not be affected in the same way. But if the buyer is purchasing without a traditional lender, or buying through an LLC, corporation, partnership, or trust, there may be additional steps before closing. Title companies and settlement professionals involved in those transactions may need to collect extra information in order to comply with the reporting requirement.

WHAT TYPES OF TRANSACTIONS MAY BE FLAGGED?

While the exact determination is made by the closing professionals handling the file, some of the situations that may trigger added review include:

all-cash purchases
purchases made by an LLC, corporation, partnership, or trust
non-financed transactions involving legal entities rather than an individual buyer
transactions where additional ownership or source-of-funds information is needed for compliance

FinCEN’s guidance makes clear that the rule focuses on certain non-financed transfers to entities and trusts, not just “cash sales” in a broad everyday sense.

WHAT SHOULD SELLERS EXPECT?

If a transaction is reportable, the title company may contact the parties for additional information before closing. That may include identification details, beneficial ownership information for the entity purchasing the property, supporting documentation related to the source of funds, and additional forms needed to complete the reporting process.

In other words, if your buyer is purchasing through an entity or trust and there is no traditional financing involved, your closing may come with a little more paperwork than usual.

That does not necessarily mean something is wrong. It just means the closing office has to follow the new rules.

WHY THIS MATTERS FOR SELLERS

For sellers, the biggest issue is not usually the reporting itself. It is the possibility of surprise delays, last-minute document requests, or confusion about why extra information is suddenly being requested near closing.

The smoother path is knowing this ahead of time.

If your transaction falls into one of these categories, your title company may ask you to watch for an email related to the reporting process and respond promptly. FinCEN has also published customer-facing guidance explaining that Real Estate Reports generally must be filed for reportable transfers occurring on or after March 1, 2026.

WILL EVERY SELLER HAVE TO DO THIS?

No.

That is the part worth repeating because this topic can get oversimplified fast. Not every home sale will involve FinCEN reporting. A financed purchase with a traditional lender generally does not fall into this reporting rule, and purchases made directly by an individual generally are not covered either.

Still, if you are selling in Bismarck, Mandan, or Lincoln, it is smart to know that some 2026 transactions may involve additional compliance steps depending on how the buyer is purchasing the property.

HOW TO PREPARE FOR A SMOOTHER CLOSING

The best thing sellers can do is stay flexible and stay informed.

If your buyer is using a legal entity or trust, or if the deal is being structured as a non-financed purchase, there is a good chance the closing office will look more closely at the transaction. When that happens, quick communication and prompt document delivery can make a big difference.

This is also one more reason it helps to work with professionals who are paying attention to the details before closing day sneaks up and throws a wrench in things. Glamorous? No. Useful? Very.

FINAL THOUGHTS

Most sellers do not need to lose sleep over the new FinCEN reporting requirements. But some transactions may involve more paperwork, more documentation, and a little more time than sellers have been used to in the past.

Knowing that now can save a lot of frustration later.

As a full-time realtor serving Bismarck, Mandan, and Lincoln, my job is to help you understand what to expect, keep communication moving, and help make sure your closing process stays as smooth as possible. If you are thinking about selling and want to talk through your situation, I would be happy to help.

This article is for general informational purposes only and is not legal or tax advice. Buyers and sellers should rely on their title company, attorney, accountant, or other qualified professionals for advice specific to their transaction. FinCEN also notes that its FAQs and guidance may continue to be updated.