Update February 24th, 2026

This message is intended solely to educate our clients on how CLAS Clerking will handle FinCEN reporting on accommodation recordings. This is not guidance regarding title companies process on cash transaction closings. If you have questions about an upcoming cash transaction closing, please contact your title company directly.

Determining Whether FinCEN Reporting Is Required

Step 1: Identify the Grantee

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

• If the grantee is an entity (non-individual) → Additional review is required to determine whether FinCEN reporting applies.

• Please refer to the Reporting Guide for full details.

Click below for Reporting Guide

FinCEN Cascade of Responsibility

FinCEN establishes a “cascade” that determines who is responsible for filing the report. Responsibility falls in the following order:

1. The party listed as the closing or settlement agent on the closing/settlement statement
2. The party who prepares the closing/settlement statement
3. The party who files the deed or instrument with the recording office
4. The party who underwrites the owner’s title insurance policy
5. The party who disburses the greatest amount of funds for the transfer
6. The party who provides the evaluation of title status
7. The party who prepares the deed or other transfer instrument (including co-op stock certificates)

Within this cascade, CLAS Clerking falls in the third position (the party filing the deed or instrument).

At this time, CLAS Clerking will require our Designation Form to be completed for any accommodation recording in which the buyer is an entity.

Please note:

Completion of the Designation Form does not eliminate FinCEN reporting requirements. Rather, it removes CLAS Clerking from the cascade and, in most cases, designates the deed preparer as the responsible reporting party

Click Below for Designation form:

Reporting Portal Information

As of February 24, 2026, the FinCEN reporting portal is not yet open.

You may register at Login.gov now to prepare your account in advance of reporting.

FinCEN has released a sample PDF outlining the information required for reporting. Please refer to the link provided below.

What if I don't report: (When needed)

Per FinCens Website:

L.1. What penalties may a reporting person face for violating Residential Real Estate Rule requirements? 



Negligent violations of the rule could result in a civil penalty of, as of 2025, not more than $1,430 for each violation, and an additional civil money penalty of up to $111,308 for a pattern of negligent activity. Willful violations could result in a civil penalty of not more than the greater of the amount involved in the transaction (not to exceed $286,184) or $71,545. This civil penalty structure generally applies to any willful violation of a Bank Secrecy Act requirement. For more information on civil penalties, see 31 U.S.C. 5321 and 31 CFR 1010.821.

Criminal penalties for willful violations of the rule could result in a term of imprisonment of not more than five years or a criminal fine of not more than $250,000, or both. For more information on criminal penalties, see 31 U.S.C. 5322.

More to Come

CLAS Clerking is actively reviewing the FinCEN portal and evaluating whether we may be able to assist with reporting for applicable transactions.

We will provide additional updates as we become more informed on the process.

James Duga - President

CLAS Clerking

1328 N Milwaukee Ave, Ste 2

Chicago IL 60622

Info@clasclerking.com