Resources and updates on NAR’s settlement agreement related to broker commissions.
Resources and updates on NAR’s settlement agreement related to broker commissions.
Recently, the Financial Crimes Enforcement Network (FinCEN), a Bureau within the U.S. Treasury Department issued a final anti-money laundering rule for the real estate industry. In February 2024, NAR submitted a formal comment in response to FinCEN’s proposed anti-money laundering rule on this issue. The final rule requires certain real estate professionals to report information for non-financed residential real estate transactions, and transfers of real estate to trusts or legal entities. The rule imposes a cascading reporting regime, which requires closing or settlement agents to provide certain transaction information and details. Alternatively, the real professionals can also designate a specific professional to be responsible for reporting. FinCEN explained that it expects reports to be filed primarily by settlement agents, title agents, insurance agents, or attorneys; however real estate agents are not explicitly exempt from reporting under the rule. The rule also imposes recordkeeping requirements as well. The rule goes into effect on December 1, 2025.
In addition to the rule, FinCEN issued two resources, the FinCEN Residential Real Estate Rule Fact Sheet and a Frequently Asked Questions document.
NAR will continue to monitor this rule, and will provide updates, educational resources, and guidance to members regarding this rule.
Read FinCEN’s Press Release
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