Residential Cash Sale Reporting Rule to Start Next Year

What You Need to Know

Beginning January 1, 2023, new regulations will require real estate professionals that assist clients in purchasing residential real estate using cash to report the transaction to FinCEN (Financial Crimes Enforcement Network).

Who is Impacted?

Real estate brokers, attorneys, and other professionals who assist with cash transactions that meet the following criteria:

• Purchases of residential properties under $25,000 are exempt.
• Transactions that are part of a larger cash purchase of $25,000 or more are also reportable.

What Information is Required?

The report must include the following information:

• Buyer's name, address, and SSN (if available)
• Seller's name, address, and SSN (if available)
• Property address
• Purchase price
• Date of closing

How to File a Report

Reports must be filed electronically through FinCEN's BSA E-Filing System.

Penalties for Non-Compliance

Failure to comply with the reporting rule may result in civil penalties of up to $10,000 per violation.

Purpose of the Rule

The rule is intended to combat money laundering and other financial crimes by increasing transparency in real estate transactions.

Additional Resources

For more information on the rule, visit the FinCEN website: https://www.fincen.gov/cash-transactions