What Is FinCEN and Why Real Estate Buyers Should Pay Attention

If you buy or sell real estate using an LLC, trust, or other entity, you’ve probably heard more talk lately about FinCEN. While it doesn’t change how property is bought or sold in Ohio day-to-day, it does add new federal reporting requirements that real estate investors need to understand.

FinCEN stands for the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury. Its job is to combat money laundering, fraud, and illegal financial activity by increasing transparency around who actually owns and controls businesses and assets.

Historically, all-cash real estate purchases using LLCs or trusts allowed buyers to remain relatively anonymous. FinCEN has identified real estate as a common vehicle for money laundering, especially when properties are purchased through entities rather than individuals.  As a result, new federal rules are expanding reporting requirements for certain real estate transactions.

Starting December 1, 2025, FinCEN will require reporting for many all-cash residential real estate transactionsinvolving legal entities such as:

• LLCs
• Corporations
• Partnerships
• Trusts

These reports will disclose:

• The beneficial owners of the entity (people who ultimately own or control it)
• The individual who controls or manages the entity
• Basic details about the property and transaction

This information is reported to FinCEN, not recorded publicly at the county level.

​Not every transaction triggers FinCEN reporting. The rule primarily targets:

• All-cash purchases
• Residential property
• Entity buyers, not individuals

Financed purchases and some entity structures may be exempt, but that determination is typically made by the title company or settlement agent.

If you plan to buy property through an LLC or trust:

• Make sure your entity records are accurate and up to date
• Know who qualifies as a beneficial owner under FinCEN rules
• Be prepared to provide ownership and control information at closing

This is not a tax and does not impact property ownership rights—but failure to comply can result in significant federal penalties.

FinCEN rules are about transparency, not restricting real estate investing. For most Ohio buyers, closings will still look the same—but behind the scenes, there is more federal reporting involved when entities and cash purchases are used.  If you regularly buy land or residential property through an LLC, it’s smart to talk with your attorney, CPA, or title company now so there are no surprises at closing.

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