How a 16-Month Real Estate Battle Changed the Way Washington Homes Come to MarketInside the new NWMLS First Look option and what it means for buyers and sellersBy Sean JeffreyRE/MAX Whatcom
FinCEN real estate rule for residential home cash sales
Dated: March 5 2026
Views: 146
New Real Estate Reporting Rule Starts March 1, 2026 in Whatcom County and country wide.
Starting March 1, 2026, a new federal rule will require certain residential real estate transactions to be reported to the Financial Crimes Enforcement Network (FinCEN). This rule mainly affects cash purchases of residential property when the buyer is a business entity or trust, rather than an individual person. The goal is to add transparency and help prevent money laundering through real estate transactions.
A transaction must be reported when all of these are true:
The property is residential real estate- a house or up to 4 units
The purchase is not financed by a traditional mortgage- cash
The buyer is an entity (LLC, corporation, estate, or partnership) or trust.
The transaction doesn’t qualify for an exemption
What does this mean for the buyer? If I have a cash buyer I will be asking them how they want to take title to the new property and specifically if they will want it in a trust. Escrow will need to extra time to collect and report the following:
Buyer Information:
Full legal name
Date of birth
Current address
Identification (passport, driver’s license, or other government ID)
Seller Information:
Full legal name
Address
Details of the property sold
Ownership/Beneficial Owner Information:
For entities (LLCs, corporations, trusts), beneficial owners must be identified (anyone with >25% ownership or control).
Transaction Details:
Property address
Sale price
Type of property (residential, commercial)
Date of sale
In Washington State, escrow will handle most of the compliance and will be using a standardized electronic form to submit to FINCEN.
Lori Christensen
Lori Christensen is a native Skagit County resident and enjoys living with her family in Bellingham since 2010. She ranked in the top ten agents in her brokerage and has sold over $44 million in ....
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