A federal district court in Texas issued a memorandum opinion and order vacating the Financial Crimes Enforcement Network (FinCEN) residential real estate reporting rule that recently took effect on March 1, 2026. Flowers Title Cos, LLC v Bessent, No 6:25-cv-127-JDK, ___ F Supp 3d ___ (ED Tex Mar 19, 2026).
The court held that FinCEN exceeded its statutory authority under the Bank Secrecy Act, 31 USC 5311 et seq., because the act only permits reporting requirements for suspicious transactions, and FinCEN has not justified treating all residential real estate transactions that the rule covers (nonfinanced transfers to a legal entity or trust that are not exempt) as suspicious.
At this time, the rule is set aside nationwide and FinCEN has placed a note on the Residential Real Estate Rule website that “reporting persons are not currently required to file real estate reports with FinCEN and are not subject to liability if they fail to do so while the order remains in force.”