What Real Estate Agents Need to Know
If you work in Florida real estate—whether you’re buying a home, selling a home, or supporting clients on the Space Coast—there’s a major regulatory change coming that you need to understand. Beginning March 1, 2026, new federal anti-money-laundering (AML) rules will require certain all-cash residential transactions to be reported to FinCEN.
Don’t panic. Most traditional buyers won’t be affected. But if you’re purchasing property through an LLC, trust, or another business entity with cash, the rules absolutely apply to you. For sellers, while there is no direct reporting duty, you may be asked for additional documentation if the buyer is a legal entity, and using non-traditional financing.
This new requirement expands on Florida’s long-standing GTO (Geographic Targeting Order) rules and brings them nationwide.
What’s Changing?
FinCEN is closing a major loophole: individuals hiding behind shell companies to buy U.S. real estate with untraceable funds. Because Florida—especially areas like Brevard County and the Space Coast—has so many cash deals, the state has always been a hot spot for monitoring.
Under the new rule, title companies must collect and report the actual humans behind certain cash purchases made through legal entities.
This applies to residential real estate only, including:
- Single-family homes
- Condos
- Townhomes
- 1–4 unit properties
Commercial property and vacant land are excluded.
Originally planned for December 2025, FinCEN postponed the launch to March 1, 2026 to give the industry time to prepare.
Does This Apply to Your Florida Real Estate Transaction?
FinCEN reporting is required when ALL the following are true:
✔ The property is residential
(1–4 units, not commercial)
✔ The buyer is a legal entity or trust
LLCs, corporations, LLPs, partnerships, and most trusts.
✔ The purchase is all-cash
No traditional mortgage = falls under review.
✔ The price meets the threshold
(Title companies will use local requirements.)
If you’re buying in your personal name or using a mortgage, you’re exempt.
But if you’re buying through your LLC or trust? Expect questions—and required documents.
Why Buyers Use LLCs or Trusts
Most people using an entity aren’t doing anything wrong. In fact, Florida investors use them all the time for:
- Privacy from public records
- Asset protection
- Rental property management
- Tax strategy
- Estate planning
FinCEN isn’t banning entity purchases—just removing anonymity.
Why Title Companies Ask for ID
If your deal meets the criteria, your title company near you must collect information about the entity’s “beneficial owners,” meaning individuals who:
- Own 25% or more, or
- Exercise substantial control
You’ll need to provide:
- Names
- Addresses
- Birth dates
- Copies of government-issued ID
- LLC or trust formation documents
Title companies—like Supreme Title, a top rated title company on the Space Coast—handle the reporting. Your job is simply providing the required documents.
This information goes ONLY to FinCEN and does not become part of public records.
What Real Estate Agents Need to Know
If you’re a Realtor working in Florida or Brevard County, here’s how to prepare:
1. Qualify Buyers Early
Ask immediately: How will you take title?
If the answer involves an LLC or trust AND it’s cash → prepare them for reporting.
2. Set Expectations
Many entity buyers value privacy. Explain this is federal law, not a title company preference.
3. Build Extra Time Into Your Contract
Complex ownership structures may take longer to document.
4. Stay in Your Lane
Do not offer legal or tax advice about ownership structures.
5. Partner with Prepared Title Companies
Experienced title companies with strong compliance systems (like Supreme Title) make the process smoother.
What Florida Buyers Should Do Now
If you’re planning an all-cash purchase through an entity:
Start Early
Gather all entity documents and IDs well before closing.
Get Organized
Create a single folder with:
- Operating agreements
- EIN records
- Trust documents
- Beneficial owner IDs
Ask Questions
Your title company and attorney can clarify requirements.
Watch Your Dates
Closing before March 1, 2026 = no reporting yet.
Closing after = be prepared.
What Florida Sellers Should Expect
The impact on sellers is minimal, but:
Expect Occasional Delays
If buyers aren’t ready with documents, closing may push back.
You Don’t Need to Provide Anything Extra
Reporting is on the buyer side only.
It Helps Protect the Market
AML rules protect Florida’s real estate values by reducing criminal money flow.
Why This Rule Matters to Florida Real Estate
Florida’s real estate market—especially Brevard County and the Space Coast—has seen:
- High levels of cash transactions
- Strong investment activity
- Significant foreign buyer interest
FinCEN’s goal is to ensure the integrity of the market by:
- Preventing money laundering
- Protecting home values
- Creating fair competition
- Enhancing national security
This benefits honest buyers, sellers, and local communities.
Preparing for March 2026 and Beyond
Whether you’re a buyer, seller, or agent working in Florida real estate, here’s your quick prep list:
Buyers (Entity & Cash)
- Decide how you’ll take title
- Gather ownership documents early
- Work with a knowledgeable title company
- Talk to your CPA or attorney about structure
Sellers
- Confirm the buyer understands requirements
- Be flexible with timelines
- Choose an agent who understands FinCEN rules
Real Estate Agents
- Add entity questions to your buyer intake
- Stay educated (this WILL come up often)
- Build relationships with compliance-ready title companies
- Communicate early and often
The Bottom Line for Florida Real Estate
FinCEN’s new reporting rule isn’t here to complicate real estate—it’s here to protect it. For everyday Florida homebuyers using a mortgage or personal name, nothing changes. But for cash buyers using LLCs, trusts, or partnerships, transparency is now part of the closing process.
Working with an experienced title company—like Supreme Title, proudly serving Brevard County and the Space Coast—ensures a smooth closing and full compliance with federal law. From title insurance to secure documentation collection, we’re here to make the process seamless.
References:
- Financial Crimes Enforcement Network. “FinCEN Announces Postponement of Residential Real Estate Reporting Until March 1, 2026.” FinCEN.gov. September 30, 2025. Click here to read.
- Financial Crimes Enforcement Network. “Residential Real Estate Rule.” FinCEN.gov. Click here to read.
- Financial Crimes Enforcement Network. “FinCEN Issues Final Rules to Safeguard Residential Real Estate, Investment Adviser Sectors from Illicit Finance.” FinCEN.gov. Click here to read.
- Financial Crimes Enforcement Network. “Anti-Money Laundering Regulations for Residential Real Estate Transfers Fact Sheet.” FinCEN.gov. Click here to read.
- American Land Title Association. “FinCEN Issues Final Anti-Money Laundering Rule for Real Estate.” ALTA.org. August 29, 2024. Click here to read.
