New Federal Reporting Rule Affects Cash Residential Real Estate Transactions in Nevada
Starting March 1, 2026, a new federal anti–money laundering rule issued by the Financial Crimes Enforcement Network (FinCEN) under the Bank Secrecy Act will apply to residential real estate transactions nationwide, including Nevada. The rule brings significant changes to how certain real estate purchases—particularly cash and non-financed deals—are handled at closing.
What Transactions Are Affected?
The rule applies to residential real estate transfers that are not financed by a traditional bank or mortgage lender. This includes: cash purchases, private or hard-money financed transactions, purchases involving legal entities without institutional financing and certain trusts. Covered property generally includes single-family homes, condominiums, townhomes, and similar residential dwellings.
Who Must Report?
The obligation to file a report does not fall on the buyer or seller. Instead, it is placed on the “Reporting Person,” which is typically the title company, escrow agent, or closing attorney involved in the transaction. Although brokers and agents are not responsible for filing the report, they play an important role in identifying covered transactions early and ensuring the proper professionals are involved.
What Information Is Reported?
The FinCEN report may require disclosure of transaction details such as the property information, purchase price, payment method, and—when legal entities are involved—certain beneficial ownership information.
Why This Matters for Nevada Real Estate Professionals
This rule replaces the prior Geographic Targeting Orders (GTOs) and establishes a uniform national reporting requirement. Transactions that once closed routinely may now involve additional compliance steps. Failure to comply can lead to civil penalties and federal enforcement exposure, as well as closing delays if issues are identified late in the process.
Best Practices Going Forward
Nevada brokers and agents should identify cash or non-financed deals early in the transaction and communicate promptly with the title or escrow company. Licensees should avoid making assurances about reporting exemptions and, instead, encourage buyers and sellers to seek legal guidance when entity ownership is involved.
