#611 Real Estate Privacy Under Fire: FinCEN’s New Reporting Rule Explained
Feb 27, 2026
New federal reporting forces disclosure when residential property transfers involve LLCs, cash deals, or subject-to financing. The conversation outlines which transactions qualify and what personal data must be reported. They cover the trust exception and practical privacy workarounds like land trusts and Wyoming LLCs. Listeners get cautions about state differences, penalties, and coordination needed to stay compliant.
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When The Real Estate Report Applies
FinCEN's Real Estate Report requires disclosure when residential property (1–4 units) transfers to an LLC and no bank is involved.
This triggers on owner-to-LLC deeds, cash purchases, and creative ‘subject to’ deals where title ends up in an LLC.
volunteer_activism ADVICE
Collect Beneficial Owner Details Before Transfer
Prepare to report the LLC that received the property and identify beneficial owners with 25%+ ownership or control.
You must provide name, date of birth, address, and Social Security number for those owners on the Real Estate Report.
insights INSIGHT
Reports Are Confidential But Fed Only
The Real Estate Report filings are confidential and not public record, accessible only via subpoena.
FinCEN treats the reports like tax returns, limiting routine disclosure despite privacy concerns.
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Privacy is under attack again — and real estate investors need to pay attention. A new federal rule tied to FinCEN and the Corporate Transparency Act now requires certain residential real estate transfers to file a Real Estate Report disclosing personal information of LLC owners. If you’re transferring property to an LLC, buying with cash, or using creative financing without a bank involved, this could apply to you starting March 1st.
In this episode of the Main Street Business Podcast, Mark J. Kohler and Mat Sorensen break down exactly when this new reporting requirement is triggered, what information must be disclosed, and the penalties for non-compliance. They also explain key exemptions — including the trust exception — and walk through potential privacy strategies using land trusts, Wyoming LLCs, and layered entity structures to help protect your name while staying compliant. If you own rental property or are actively investing in real estate, this is critical information.
Make sure you understand the rules before your next transfer. Subscribe for weekly tax and legal strategies, leave a comment with your questions, and share this episode with other real estate investors who need to know about this change!
You’ll Learn:
What the new FinCEN Real Estate Report is and why it’s being enforced
The three specific scenarios that trigger this new federal reporting requirement
What personal information must be disclosed (and who has to report it)
How this rule connects to the Corporate Transparency Act and beneficial ownership reporting
Which real estate transactions are exempt — including the trust exception
The risks and penalties for failing to comply
How transferring property to an LLC is still critical for asset protection
Practical privacy strategies using trusts and Wyoming LLCs
How to balance state-level privacy with federal reporting requirements
Smart next steps to stay compliant without sacrificing asset protection or overpaying for entity setups
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