Navigating FinCEN's RRE Rule: Impacts on Commercial Real Estate Deals

FinCEN's new Anti-Money Laundering Regulations for Residential Real Estate Transfers requires significant reporting and compliance obligations that intersect with commercial transactions in important ways. Although the rule primarily applies to non-financed residential transfers, commercial practitioners must understand when the regulations may apply to mixed-use properties, smaller 1-4-unit transactions, private financing arrangements, and entity purchasers, all of which are frequently seen in commercial deals.

This program will provide a practical overview of the RRE rule, including who must report, what constitutes a reportable transfer, applicable exemptions, and the required beneficial ownership disclosures. The course will distinguish between transactions clearly outside the rule's scope and those that may trigger reporting-particularly in scenarios involving private financing, transfer trusts, or entity buyers. Through analysis of definitions, reporting timelines, and potential liability for non-compliance, attendees will gain clarity on how these requirements are typically applied in commercial contexts. This program will benefit commercial real estate attorneys, title professionals, and in-house counsel seeking to better understand how the new requirements may affect transaction timelines, documentation, and closing workflows under the evolving regulatory framework.

Learning Objectives:

1. Identify which real estate transactions are subject to FinCEN's RRE reporting requirements and distinguish those transactions from exempt commercial transactions.
2. Analyze how the definitions of "non-financed transfer," "transferee entity," and "transfer trust" apply to commercial and mixed-use deal structures.
3. Evaluate reporting obligations, required beneficial ownership disclosures, and timing requirements to prevent closing delays and liability exposure.
4. Apply practical strategies to coordinate FinCEN reporting requirements within escrow and title processes to help facilitate efficient and timely commercial closings.
5. Assess potential civil and criminal consequences of non-compliance and implement risk-mitigation practices for larger commercial transactions.