FinCEN and Accomondation Recordings

This page is intended solely to educate our clients on how Proper Title will manage FinCEN Residential Real Estate (RRE) Reporting for accommodation recordings.

If you have specific questions regarding an upcoming cash transaction closing, please contact your Proper Title account executive directly, and our team will be happy to assist you.

 

Is FinCEN RRE Reporting Required?

  • FinCEN RRE Reporting is not required.

  • If your transaction involves the below, you’ll want to review next steps to comply with the FinCEN RRE Reporting:

    • Residential (includes mixed-use properties);

    • A non-financed transaction (such as cash, gift funds, and hard-money lender); and 

    • The buyer is an entity (corporation, LLC, etc) or trust.

    If your transaction includes this criteria click the button below to view the reporting guide.

Click Here for Reporting Guide
 

FinCEN Cascade of Responsibility

FinCEN establishes a “cascade” that determines who is responsible for filing the report. Below is the order of responsibility 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, Proper Title (the party filing the deed or instrument) is number 3.

    Proper Title will require a 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 RRE Reporting requirements. Rather, it removes Proper Title from the cascade and, in most cases, designates the deed preparer as the responsible reporting party

Designation Form
 

Access The FinCEN RRE Reporting Portal

Click below to link to the BSA E-Filing System which supports electronic filing of Bank Secrecy Act (BSA) forms through a FinCEN secure network.

FinCEN RRE Reporting Portal
 

Are There Penalties for Not Reporting?

Click below to view penalty information, “L. Compliance/Enforcement”.

View All Penalty Details Here

If you have any questions, please reach out to your Proper Title Account Executive.