Effective December 1, 2025, certain individuals involved in real estate closings and settlements are going to be required to report and maintain records on non-financed transfers of residential real property to legal entities and trusts pursuant to this Final Rule, 31 CFR Chapter X, RIN 1506-AB54.
Key Points:- Reporting persons must file a "Real Estate Report" identifying themselves, the legal entity or trust receiving the property, the beneficial owners, the transferor, and the property, along with transactional information.
- A reasonable reliance standard allows reporting persons to rely on information from others, provided it is certified in writing.
- Under the proposed rule, attorneys could potentially be subject to a reporting requirement.
- The final rule includes exceptions for certain transfers, such as those resulting from grants, death, divorce, and bankruptcy.
- Negligent violations of the final rule could result in a civil penalty of, as of the publication of the final rule, not more than $1,394 for each violation, and an additional civil money penalty of up to $108,489 for a pattern of negligent activity.
