In today’s evolving Miami real estate landscape, FinCEN reporting requirements are becoming a critical part of every transaction.
With the introduction of new FinCEN reporting requirements for residential real estate transactions, buyers, sellers, and real estate professionals across South Florida are entering a new era of transparency.
One of the most misunderstood aspects of this regulation is when a transaction is actually reportable — and who is responsible for reporting it.
At Zagury Scott PA, we are actively guiding clients, agents, and investors through these new requirements to ensure compliance and avoid unnecessary risk.
Before you close on your next transaction, here is what you need to understand.
What Is FinCEN’s Residential Real Estate Reporting Rule?
FinCEN (Financial Crimes Enforcement Network) has introduced a rule targeting certain non-financed residential real estate transfers.
The goal is to combat money laundering by increasing transparency in all-cash or non-traditional financing transactions.
But here’s the key point:
Not every transaction is reportable — only specific types of transfers trigger the requirement.
When Is a Transaction Reportable?
A transaction may be reportable if it meets the following criteria:
✔ Involves residential real property (1–4 family homes, condos, co-ops, or similar)
✔ Is a non-financed transfer (no loan from a traditional lender covering all buyers)
✔ The buyer is a legal entity (LLC, corporation, trust, etc.)
✔ No exemption applies
If all of these elements are present, a FinCEN Real Estate Report may be required.
This is where proper legal guidance becomes critical.
What Counts as “Non-Financed”?
A non-financed transfer does not simply mean “all cash.”
It means:
No loan secured by the property from a financial institution subject to AML regulations is extended to all buyers.
This includes scenarios such as:
✔ Cash purchases
✔ Private or seller financing (in some cases)
✔ Partial financing structures
Understanding how a deal is structured is essential in determining whether reporting is triggered.
Who Is Responsible for Filing the Report?
FinCEN assigns reporting responsibility to a Reporting Person, which is determined through a specific hierarchy.
In many South Florida transactions, this may be:
✔ The settlement agent
✔ The title company
✔ The closing attorney
At Zagury Scott PA, we often act as the reporting party — ensuring compliance is handled correctly and on time.
What Information Must Be Reported?
If a transaction is reportable, the following information is typically required:
✔ Buyer (transferee) details
✔ Beneficial ownership information
✔ Property details
✔ Transaction amount
✔ Payment method
Accuracy is critical.
Incomplete or incorrect reporting can lead to compliance issues and potential penalties.
What Happens If You Fail to Comply?
Failure to comply with FinCEN reporting requirements can result in:
✔ Civil penalties
✔ Regulatory scrutiny
✔ Delays in closing
✔ Increased risk exposure for all parties involved
In a high-volume Miami Real Estate market, even small compliance gaps can create significant complications.
Common FinCEN Mistakes in South Florida
We are already seeing transactions where parties:
Assume all-cash deals are automatically exempt
Misidentify who the reporting party is
Fail to collect required buyer information early
Overlook entity ownership disclosures
Wait until closing to address compliance
Timing matters.
FinCEN reporting is not something to figure out at the closing table.
Why FinCEN Compliance Matters in Miami
South Florida is a global real estate hub.
With international buyers, entity purchases, and high-value transactions, the region is a key focus for regulatory oversight.
Factors that increase scrutiny include:
✔ Entity-owned purchases
✔ Foreign buyers
✔ High-value transactions
✔ Complex deal structures
Proper compliance protects not just the transaction — but everyone involved in it.
Bonus Tip: Don’t Wait Until Closing
You should address FinCEN compliance:
✔ At contract stage
✔ During buyer onboarding
✔ Before funds are finalized
✔ Prior to closing preparation
Waiting too long can delay closing or create last-minute issues..
Why Work With a Real Estate Attorney?
Real estate agents facilitate the deal.
Title handles the process.
A Real Estate Attorney ensures compliance.
At Zagury Scott PA, we:
Review transaction structure for FinCEN applicability
Determine reporting obligations early
Collect and verify required information
Coordinate with all parties involved
Ensure timely and accurate filing
Protect clients from compliance exposure
In today’s regulatory environment, proactive legal oversight is no longer optional — it is strategic.
Final Thoughts
FinCEN reporting is not just a new requirement.
It is a shift in how real estate transactions are monitored.
Understanding whether your transaction is reportable — and handling it correctly — can be the difference between a smooth closing and a compliance issue.
Schedule a Consultation with Zagury Scott PA
Before closing on your next Miami or South Florida real estate transaction, ensure your deal is structured and reported correctly.
At Zagury Scott PA, we help clients navigate FinCEN requirements, protect their transactions, and close with confidence.
Contact us today to stay compliant and avoid costly mistakes.
