LIEB BLOG

Legal Analysts

Showing posts with label fincen reporting. Show all posts
Showing posts with label fincen reporting. Show all posts

Thursday, August 29, 2024

FinCEN New Real Estate Reporting Final Rule Issues on Trusts

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.