FinCEN 31CFR § 1031.320 Update

Most of you are aware that changes have been made to 31 CFR 1031.320 (“the Rule”) which went into effect on March 1, 2026, which required additional reporting in the event a “[n]on-financed transfer to a transferee entity or a transferee trust of an ownership interest in residential real property.”

However, on March 20, 2026, FinCEN released updated guidance. FinCEN has now advised that “In light of a federal court decision, reporting persons are not currently required to file real estate reportswith FinCEN and are not subject to liability if they fail to do so while the order remains in force.” This suspension of required compliance will continue until there are further court proceedings or appellate decisions alter the current state of the law. The firm is dedicated to ensuring adherence to the rule for all applicable transactions and providing our clients with updates as to its effects.