In Merrily We Roll Along, placing the orchestra above the stage brings the source of the music into full view. FinCEN’s Real Estate Reporting Rule, which recently was vacated by a Florida federal court, had a goal of moving hidden participants in real estate transactions into view when property is acquired through an entity or trust in a transfer not financed with using a traditional mortgage. The orchestra in Merrily voluntarily placed itself in full view, but FinCEN didn’t make reporting optional – it forced parties with legitimate reasons for establishing limited liability companies and trusts to report their ownership. Since the Florida decision likely will be appealed, parties that use entities to require real estate in transactions not financed by traditional mortgages should be aware that privacy is not guaranteed in the future.
Read MoreEffective December 1, 2025, FinCEN is expanding anti-money laundering reporting beyond a few “high-risk” markets to all entities purchasing residential real estate without financing from a bank or certain institutional mortgage lenders.
Read MoreA recent court decision declaring the Corporate Transparency Act unconstitutional only affects companies that were National Small Business Association members on March 1, 2024. Other companies and real estate investors still must report their beneficial ownership information to FinCEN.
Read MoreFinCEN’s proposed extension of the Corporate Transparency Act reporting deadline would provide needed additional time so new companies likely would not have to immediately update their initial filings. However, the extension would be temporary and would not address other challenges presented by the Act.
Read MoreFinCEN recently adopted a final rule implementing the Corporate Transparency Act. Although the rule doesn’t take effect until January 1, 2024, companies should start preparing now.
Read MoreFinCEN regulation of all-cash real estate transactions appears likely. Are you prepared?
Read MoreReal estate has long been a target for fraud, money laundering, and other illegal activity. Before investing, real estate investors should be on the lookout for signs of suspicious activity and conduct due diligence that rules out illegal behavior.
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