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.

Get your anti-discrimination guidance starting on December 10, 2020 on HUD's new searchable website, which will also give guidance on lending, foreclosures, and much more. 

Currently, guidance is available here.  

Starting on December 10, 2020, HUD will make available "a single, searchable, indexed website," and make guidance subject to a 30 day public comment period with a procedure for the public to petition to modify or withdraw guidance per its Interim Final Rule available at 85 FR 71537.

HUD guidance documents "are statements of general applicability and future effect that set forth policy on statutory, regulatory, or technical issues or interpret statute or regulation." In plain English, guidance advises industry as to HUD's interpretation of laws as applicable to described activity. As such, industry is better able to function, in a regulated environment, when industry can request direction on gray areas of law prior to making investment or taking action in that area. 

As background, "[o]n October 9, 2019 (84 FR 55235), the President issued E.O. 13891, “Promoting the Rule of Law Through Improved Agency Guidance Documents," which "requires that each Federal agency take certain actions to ensure the transparent availability and use of guidance documents." This Interim Final Rule is made in satisfaction of the E.O.

On October 14, 2020, the EEOC issued a final rule, 29 CFR 1601 & 1626, for charges of employment discrimination. The key to this rule is to clarify that just because EEOC makes a "no cause" determination, that doesn't mean there is no discrimination and a victim can still hire an attorney and pursue a private lawsuit against their employer. While this change is minor in law, it's very important to clarify victim's rights.

Specifically, the rule now includes a notice to the victim of their right to file a lawsuit (within 90 days of receipt of the determination) and clarifies that a "no cause" determination doesn't mean that the "claims have no merit." Now, the Dismissal and Notice of Rights will read as follows:

The EEOC issues the following determination: The EEOC will not proceed further with
its investigation, and makes no determination about whether further investigation would
establish violations of the statute. This does not mean the claims have no merit. This
determination does not certify that the respondent is in compliance with the statutes. The
EEOC makes no finding as to the merits of any other issues that might be construed as
having been raised by this charge.