By  on July 22, 2026

Jeff Watson says real estate investors, private lenders, and title & escrow companies have operated in confusing regulatory uncertainty since a federal judge vacated the Financial Crimes Enforcement Network’s (FinCEN) Anti-Money Laundering Regulations for Residential Real Estate Transfers- commonly known as the RRE rule- in March of 2026. The situation became even muddier when FinCEN filed a notice of appeal of that ruling seeking to have the rule reinstated. I believe the Trump-led Department of Justice will NOT zealously prosecute this appeal.  Click here to read more.

Real estate investors, private lenders, and title & escrow companies have operated in confusing regulatory uncertainty since a federal judge vacated the Financial Crimes Enforcement Network’s (FinCEN) Anti-Money Laundering Regulations for Residential Real Estate Transfers—commonly known as the RRE rule—in March of 2026. The situation became even muddier when FinCEN filed a notice of appeal of that ruling on May 11, 2026, seeking to have the rule reinstated. I believe the Trump-led Department of Justice will NOT zealously prosecute this appeal.  I expect this appeal to be a mere formality, and even if aggressively pushed, I expect the Court of Appeals to affirm the lower court.

The FinCEN rule, for those of you who don’t recall, was based upon the presumption that if you were using cash or non-bank financing, then you were deemed to be engaged in a “suspicious” activity that needed additional reporting.  The federal trial court flat out rejected the notion that using cash was a suspicious activity.

FinCEN is offering important clarity for real estate investors, private lenders, and title and escrow professionals, courtesy of a new FAQ guidance on the RRE rule it issued on May 18, 2026. One answer in particular stands out: “No, you won’t need to file retroactive RRE reports.”  This is good news for real estate investors, private lenders, and many others in the real estate space, because compliance with the FinCEN rule has significantly hindered and complicated scheduling and completing closings in a timely manner.

If FinCEN wins its appeal—which I highly doubt—and the overreaching RRE rule is reinstated, FinCEN will not require title and escrow companies to submit retroactive Real Estate Reports for non-financed residential real estate transactions involving legal entities and trusts that occurred while the Federal court’s vacatur of the “cash reporting rule” was in effect.

According to the new guidance FinCEN wrote, “If the order is overturned and the RRE rule again becomes legally effective, reporting persons will not be required to file reports for transactions that would have been reportable during the period the court’s order was in force. If the rule is reinstated, FinCEN will provide further guidance on when reporting will resume.”

That’s meaningful Information for real estate investors, private lenders, and title and escrow companies who have concerns over how possible retroactive reporting of those types of “cash” transactions might be reported or handled.

Additionally, FinCEN reiterated what it’s been saying since the March 2026 court decision that determined the invalidity of the the RRE rule: title & escrow companies are not currently required to file real estate reports on RRE-covered transactions and are not subject to liability if they fail to do so while the court’s order remains in force.

Remember when we had the crazy FinCEN reporting rule for all domestic United States entities, such as LLCs, partnerships, and corporations?  Recall the back-and-forth that happened regarding various court rulings and retroactivities and stay, etc.?  I believe the current Treasury Department leadership has a completely different perspective on these rules than the leadership in place when the rules were established.

 

 

Jeffery S. Watson is an attorney who has had an active trial and hearing practice for more than 25 years. As a contingent fee trial lawyer, he has a unique perspective on investing and wealth protection. He has tried over 20 civil jury trials and has handled thousands of contested hearings. Jeff has changed the law in Ohio four times via litigation.  Read more of his viewpoints at WatsonInvested.com.