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The Financial Crimes Enforcement Network of the Department of the Treasury ("FinCEN") announced a temporary pause to the requirements of the Residential Real Estate Reporting Rule ("RRE") otherwise due on transactions after March 1, 2026. Liskow has previously outlined the RRE requirements in its post regarding the Residential Real Estate Rule. However, FinCEN has now declared that, "[i]n light of a federal court decision, 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."
The announcement follows a March 19 decision by the U.S. District Court for the Eastern District of Texas, Tyler Division, in Flowers Title Companies v. Bessent, Case 6:25-cv-00127-JDK. The court in Flowers granted summary judgment to the plaintiff challenging the RRE on the grounds that it exceeded FinCEN's statutory authority provided by the Bank Secrecy Act, 31 U.S.C. § 5318(g)(1) and 31 U.S.C. § 5318(a)(2).
Although the decision is likely to be appealed, FinCEN has confirmed that reporting will not be required under the RRE while the order remains in effect.
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