Dear Real Estate Professionals,

It is not every day that new regulatory changes significantly impact CLAS Clerking’s operations. Beginning March 1, 2026, the Financial Crimes Enforcement Network (FinCEN) residential real estate reporting rule will take full effect and will change the way CLAS Clerking processes certain deed recordings.

This communication is intended to clarify reporting requirements, provide education, and outline CLAS Clerking process moving forward.

Many local title companies have already distributed information regarding FinCEN reporting and how it will affect cash transactions at closing. We strongly encourage you to connect with your title professional to better understand how these reporting requirements may impact upcoming cash transactions beginning March 1, 2026.

While much of the industry discussion has focused on cash closings, this notice is specifically intended to address how FinCEN reporting may affect recordings involving:

• Estate planning transfers
• LLC/Partnership transfers
• Transfers where no actual funds are being exchanged

We have a Residential Real Estate Reporting Quick Reference Guide to assist you in determining when reporting may be required. See below link

Where to Start

Step 1: Identify the Grantee

• If the grantee is an individual, FinCEN reporting is not required.

• If the grantee is an entity (non-individual), the next step is to determine whether FinCEN reporting is required.

This determination is the responsibility of the preparer of the document.

CLAS Clerking will provide educational resources released by Financial Crimes Enforcement Network (FinCEN), but we are not able to determine whether reporting is required for any specific transaction.

Process Changes for CLAS Clerking

Effective March 1, 2026:

• Any deed submitted for recording where the grantee is an entity must be accompanied by a completed Designation Form. (Link Below)

• This form transfers responsibility for FinCEN reporting (or determining whether reporting is required) from CLAS Clerking, as the recorder, to the preparer of the document.

• A separate Designation Form must be completed for each deed submitted.

• The form will not be recorded with the deed. It will be retained internally for documentation purposes in the event of a future FinCEN audit.

CLAS Clerking will not proceed with recording any deed submitted on or after March 1, 2026, where the grantee is an entity and the required Designation Form has not been completed.

FinCEN Reporting – Where and How

Where:

Reporting will occur through FinCEN’s Residential Real Estate Reporting portal:

https://www.fincen.gov/rre

The full reporting portal is not yet active or available for review.

How:

The reporting process is not yet fully defined due to the portal not being operational. Additional information will be provided as guidance becomes available.

Frequently Asked Question – Estate Planning Transfers

Does this affect deeding property into a trust?

The answer is: Yes and No.

Example:

If Bob and Mary Smith deed their property into the Smith Family Trust:

• If the trust certificate identifies Bob and Mary as the sole beneficiaries, reporting is not required.

• If the trust agreement names Bob, Mary, and their daughter Jane as beneficiaries, the transfer may be considered reportable because Jane is now included in the transfer structure.

Each situation must be reviewed based on the specific trust documentation, CLAS Clerking cannot determine reporting requirements.  

Future Developments

• CLAS Clerking is closely monitoring all developments regarding FinCEN reporting requirements and will continue to provide updates as new guidance becomes available.

• We are also reviewing the reporting process to determine whether CLAS Clerking can assist clients as a service provider in completing and submitting FinCEN reports.

Recap

• If CLAS Clerking is recording your deed and the grantee is an entity, a Designation Form is required.

• Responsibility for determining whether FinCEN reporting is required rests with the preparer of the deed.

• CLAS Clerking does not provide legal advice and cannot determine reporting obligations.

• We will continue providing resources to assist our clients with FinCEN compliance.

• Effective date: March 1, 2026.

If you have questions regarding reporting requirements, please consult your legal counsel, title professional, or review materials provided by FinCEN.

We appreciate your cooperation as we implement these important regulatory changes.

Sincerely,

James Duga – President

CLAS Clerking

1328 N Milwaukee Ave, Ste 2

Chicago IL 60622

info@clasclerking.com