FinCEN's New Real Estate Reporting Rule: What Indiana & Ohio All-Cash Buyers Must Know
Quick Answer
A new FinCEN rule effective March 1, 2026 requires title companies to report all-cash residential real estate purchases made by LLCs, corporations, partnerships, and trusts. Individual cash buyers are not affected. If your entity is buying property in Indiana or Ohio without a mortgage, Empire Title will need to collect beneficial ownership information from you before closing.
What Is the New FinCEN Rule?
The Financial Crimes Enforcement Network (FinCEN) - a bureau of the U.S. Treasury Department - finalized its Real Estate Reporting Rule in August 2024. The rule became effective March 1, 2026 and applies nationwide, including to residential transactions in Indiana and Ohio.
The rule requires that "persons involved in real estate closings and settlements" - primarily title companies and settlement agents - file a Real Estate Report (Form 508C) with FinCEN whenever a qualifying non-financed residential transaction occurs. The goal is to detect and deter money laundering through the real estate market, where anonymous LLC ownership has historically been used to hide illicit funds.
Empire Title Service has completed full compliance training and has established internal procedures to handle all reportable transactions correctly and on time.
Does This Rule Affect Your Transaction?
Not every closing is subject to reporting. The rule applies only when all three of the following conditions are met:
The property is residential
Single-family homes, condos, co-ops, townhouses, and land intended for 1–4 family construction. Commercial properties are not covered.
The purchase is non-financed (all-cash)
No mortgage from a bank or lender that already has AML program obligations. Traditional financed transactions are exempt - the lender's AML program covers those.
The buyer is a legal entity or trust
LLC, corporation, partnership, trust, or other legal entity. Individual cash buyers - even high-net-worth individuals - are not subject to this reporting requirement.
Exempt from Reporting
- • Any purchase with a traditional mortgage (lender has AML obligations)
- • Individual buyers (even in all-cash transactions)
- • Commercial real estate purchases
- • Entities that qualify for one of 16 federal exemptions (banks, insurance companies, publicly traded entities, government agencies, etc.)
What Empire Title Must Collect
For a reportable transaction, Empire Title acts as the "reporting person" - we are responsible for submitting the Real Estate Report to FinCEN within 30–60 days of closing. To do this accurately, we must collect detailed information at or before the time of closing.
About the Entity
- • Full legal name of the LLC/corporation/trust
- • Principal address
- • Employer Identification Number (EIN)
- • Type of entity and state of formation
- • Date of formation
About Each Beneficial Owner
- • Full legal name
- • Date of birth
- • Residential address
- • Citizenship or nationality
- • Taxpayer Identification Number (TIN/SSN)
A beneficial owner is any individual who owns 25% or more of the purchasing entity, or who exercises substantial control over it. For a simple 2-member LLC, both members would typically need to be disclosed.
We'll ask all entity buyers to complete a Beneficial Ownership Certification form before or at closing. This is a federal requirement - not optional - and non-compliance can result in penalties for both the title company and the parties who provide false information.
The full Real Estate Report (Form 508C) can contain up to 111 data fields, though most transactions average 40–60 fields. Expect this process to add approximately 2–2.5 hours of additional work per reportable file.
Timeline & Filing Deadlines
At file opening
Empire Title begins screening the transaction. If reportable, we immediately begin collecting beneficial ownership data - we do not wait until closing.
Before/at closing
Buyer's entity provides completed Beneficial Ownership Certification. All required data is verified and documented.
Within 30 days of closing
Standard filing deadline. Empire Title submits the Real Estate Report to FinCEN via the BSA E-Filing system.
Records retained for 5 years
Empire Title is required to maintain all supporting documentation for a minimum of 5 years from the date of closing.
What You Need to Do
If your LLC, corporation, or trust is purchasing residential property in Indiana or Ohio with cash:
- Contact Empire Title as early as possible - ideally when you open escrow, not the week of closing
- Gather your entity documents: EIN, operating agreement or articles of incorporation, and state formation documents
- Identify all beneficial owners (25%+ ownership or substantial control) - have their SSNs, DOBs, and addresses ready
- Plan for an extra step in the closing process - our team will walk you through the certification form
Frequently Asked Questions
Does the FinCEN real estate reporting rule apply to all Indiana and Ohio home sales?
No. The rule only applies to residential real estate transfers that are (1) non-financed - meaning all-cash with no mortgage from a lender subject to AML requirements - and (2) where the buyer is a legal entity (LLC, corporation, partnership) or trust. Individual buyers purchasing with cash are not subject to this rule. Most financed transactions are also exempt because the lender already has anti-money laundering obligations.
What information does Empire Title collect from my LLC under the new FinCEN rule?
For reportable transactions, Empire Title must collect the full legal name, date of birth, residential address, citizenship or nationality, and a taxpayer identification number (TIN) for each beneficial owner of the purchasing entity - anyone who owns 25% or more or exercises substantial control. The entity itself must also provide its legal name, address, EIN, and type of entity. This data is submitted to FinCEN via the BSA E-Filing system within 30–60 days of closing.
What are the penalties for non-compliance with the FinCEN real estate reporting rule?
Civil penalties can reach up to $108,489 per violation. Criminal penalties include up to 5 years in federal prison and fines up to $250,000. These penalties can apply to both the reporting person (typically the title or settlement company) and to parties who knowingly provide false information. Empire Title takes compliance seriously and has implemented internal procedures to handle all reportable transactions correctly.
When did the FinCEN real estate reporting rule take effect, and does it apply to my pending closing?
The rule became effective March 1, 2026. Any residential all-cash transfer to a qualifying entity or trust that closes on or after March 1, 2026 is subject to the reporting requirement, regardless of when the purchase contract was signed. If you have a pending closing involving an LLC or trust, contact Empire Title now so we can begin collecting the required beneficial ownership information before your closing date.
Missy Horner
President, Empire Title Services | 20+ Years Experience