FinCen Regulatory Changes: Cortes & Hay Details What Consumers Need to Know

Flemington, NJ – Cortes & Hay, New Jersey’s leading title insurance company, has published a guide detailing what Americans need to know about the impact of the new FinCEN (Financial Crimes Enforcement Network) “Residential Real Estate” regulations set to go into effect on March 1, 2026.

 

“The new regulations put in place by FinCEN will have a lasting effect throughout the real estate industry – not just with title insurance agencies and title agents, but with property buyers, sellers, and real estate agents,” Justin Hay, president of Cortes & Hay, said. “Cortes & Hay’s long experience in the industry and expertise in dealing with regulatory changes on a national and local level leave us uniquely positioned to detail how these new rules will impact the real estate process.”

 

Here’s what consumers should know about the new changes:

 

1. The FinCEN Residential Real Estate Rule Requires Title Agents and Title Agencies to Report Certain Information to the Government

 

The new Residential Real Estate Rule, going into effect on March 1, 2026, requires title agencies, title insurance agents, and other industry professionals to collect and report certain information to FinCEN regarding “certain non-financed transfers of real estate to legal entities or trusts.”

The FinCEN Residential Real Estate Rule is the next evolution of the FinCEN’s Geographic Targeting Orders (GTOs), which have been in place since 2016. These Orders required the same kind of reporting for the same type of non-financed transactions, starting off in some of the hot spots for suspicious activity (New York, Miami) and eventually encompassing many different areas around the country, and set at a specific transaction amount ($300,000 in most places).

Under this new rule, there are no more geographic restrictions or financial thresholds for this reporting; instead, any non-financed transfer must be reported to FinCEN.

2. FinCEN is an essential part of the national security network. 

 

FinCEN stands for the Financial Crimes Enforcement Network. Established in 1990 and moved under the United States Treasury Department after 9/11, FinCEN analyzes complex national and international financial transactions to identify illicit activities that might support terrorist efforts, money laundering, fraud, or other criminal activities.

Real estate, like banking and other international industries, falls within FinCEN’s enforcement scope. 

3. The FinCEN Rule is in Place to Combat Potential Criminal Efforts

 

Per the FinCEN’s website, the Residential Real Estate rule is “designed to increase transparency in the U.S. residential real estate sector and to combat and deter money laundering.” These non-financed transfers could (potentially) be used to launder money gained from criminal activities, along with other nefarious actions. The more information the government can collect about these types of real estate transactions, the easier it will be to sniff out these illicit actors – and deter other bad actors from the same kinds of actions.

 

4. The FinCEN Regulations Cover “Non-Financed Transfers of Real Estate” and Apply to a Wide Range of Properties 

 

Under the Residential Real Estate Rule, the reporting extends to real estate transactions where the legal entity or trust doing the purchasing makes an all-cash deal, uses seller or private financing, or relies on the funding from any institution not covered by the Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), Bank Secrecy Act (BSA), or Suspicious Activity Activity Reporting (SAR) rules.

 

The Residential Real Estate Rule applies to a wide range of properties, including residential (1-4 family) properties and vacant land intended for the same type of construction, co-ops, condos, apartment buildings, and mixed-use buildings.

 

Note, too, that there are some exceptions to the rule. These include (but are not limited to) divorce settlements, property transfers overseen by a U.S. court, bankruptcy, and others.

 

5. Title Insurance Agents and Title Insurance Agencies Will Usually Be the Ones Doing the Reporting

 

The government has developed an extensive chart outlining reporting responsibilities; however, in most cases, the responsibility will fall on title insurance companies and agents to submit the information to FinCEN. The agent, company, or other reporting entity must submit a detailed report by the last day of the month following the month of the closing, or 30 days after the closing date (whichever is later). The report will be filed on the FinCEN website.

The report collects information detailing the legal owners of the property, all beneficial owners, the transfer signers, the total amount being paid, and banking and other financial details.

 

6. People Involved With Non-Financed Transfers Should Be Ready to Work Closely With Title Insurance Agents and Agencies

 

If you’re planning on being involved in one of these non-financed transfers of real estate after March 2026, it’s essential to work with a trusted and experienced title insurance company (like Cortes & Hay) that will work with you to collect the information needed and answer any questions. These regulations are new and complex and will require a good working relationship among the parties involved in the transactions (the buyers and sellers) and the title insurance agents who must report the information to the government.

 

About Cortes & Hay

 

Cortes & Hay offers over 50 years of experience in residential, commercial, and industrial title insurance. Our veteran leadership provides a wide range of expertise—from multiple-tract assemblage to improvements on leased land or residential subdivisions—giving our clients the confidence and peace of mind they deserve in their title insurance transaction. Additionally, Cortes & Hay specializes in 1031 exchanges and settlement services, including property sales, purchases, and refinancings, as well as attorney-assisted closings. 

 

As a commitment to our clients and everyone we do business with, Cortes & Hay takes the strictest steps to conform with all industry standards set by the American Land Title Association’s (ALTA’s) Title Insurance and Settlement Company Best Practices.

Cortes & Hay has two convenient locations in New Jersey (Flemington and Hoboken) and proudly serves the entire state. 

Contact Information:

Cortes & Hay Title Agency, Inc.

110 Main Street St #1
Flemington, NJ 08822
United States

Michele Caporin
(908) 782-8850
https://cortesandhay.com/