Legal News and Updates
Court Decision on FinCEN Residential Real Estate Rule
On March 19, 2026, a federal district court in Texas vacated the Financial Crimes Enforcement Network’s (FinCEN) Residential Real Estate Anti‑Money Laundering (AML) Rule, holding that the agency exceeded its statutory authority under the Bank Secrecy Act (BSA) and violated the Administrative Procedure Act (APA). As a result, the rule has been set aside. FinCEN posted a statement noting, “in 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.”
Neither the Department of Justice (DOJ) nor FinCEN has yet indicated whether there is a plan to appeal the ruling. DOJ may also seek a stay of the decision if they choose to appeal, which could reinstate compliance obligations until an appellate court rules.
FinCEN’s Residential Real Estate AML Rule requires reporting of non‑financed residential real estate transfers involving legal entities or trusts, with the goal of addressing money laundering risks associated with all‑cash purchases. The rule took effect on December 1, 2025, with reporting obligations beginning March 1, 2026.
NAR supports risk‑based, pragmatic approaches to combating money laundering and illicit finance in real estate. Since the final rule was issued, NAR hosted an educational webinar and shared FinCEN guidance with members.
NAR will continue monitoring developments closely and will update members as the legal process unfolds.
NAR Washington Report here: Court Decision on FinCEN Residential Real Estate Rule
FinCEN statement here: Residential Real Estate Rule | FinCEN.gov
Please reach out to Caitlin Vannoy (cvannoy@nar.realtor) or Nia Duggins (nduggins@nar.realtor) with any questions.
Don’t Miss the Broker Summit in April!
The Michigan Realtors® Broker Summit brings together elite brokers and Realtors® from around the state to address current real estate and market trends that impact your bottom-line. Attendees will gain powerful insight about critical business strategies and tools for successfully running their brokerages. All members are encouraged to attend.
Watch Letter of the Law | Seller Disclosure From the Investor’s Perspective
For more videos and transcripts, visit law.mirealtors.com.
Watch Policy Matters | Michigan Housing Readiness
For more videos and transcripts, visit law.mirealtors.com.
Michigan Realtors® Presents: The Fair Housing Checklist
This virtual educational initiative will feature a free hour of Fair Housing CE Certified education. Michigan Realtors® Legal Team, Becky Berke and Brian Westrin will guide you through the checklist and help you stay compliant.
Registration opens March 18th at 11:00 AM.
April 9, 2026, 10:00 – 11:00 AM
FinCEN: Michigan Realtors® Publishes New Client Notice.
Effective March 1, 2026, closing agents are required to file a report with the federal government for any residential real estate transaction that does not involve a traditional mortgage loan from an institutional lender, and the buyer is a legal entity or trust. This will include all-cash deals and sales that are privately financed or seller financed. The following form is intended to alert your client to additional closing and reporting requirements that may arise based on the nature of a particular transaction.
This new Client Notice provides a brief overview of the FinCEN filing requirements and is not intended as legal advice. Utilization of the Client Notice provides brokerages with an opportunity to introduce clients to the possible impact of FinCEN, while also asking the client to acknowledge the information. For a more detailed discussion on the FinCEN requirements, please visit FinCEN’s Frequently Asked Questions and/or consult with an attorney.
Watch From The Mailbag | Seller Disclosure Q&A
For more videos and transcripts, visit law.mirealtors.com.
Watch Letter of the Law | Seller Disclosure From The Buyer’s Perspective
For more videos and transcripts, visit law.mirealtors.com.
Vote for Two 2025 NAR Good Neighbor Award Finalists from Michigan
Michigan Realtors® has two finalists in the 2025 NAR Good Neighbor Awards! Finalists will be recognized during NAR NXT in Houston. Read their stories and vote for them in the Web Choice Awards. The three finalists who get the most votes will receive up to a $2,500 bonus donation to their nonprofits.
From The Mailbag | Question of The Week
Each month, we are taking the most recently asked questions from From The Mailbag and putting them in E-News.
QUESTION: My buyers do not want their identity disclosed to the seller until after the purchase agreement is signed. Can we submit an anonymous offer?
ANSWER: If the seller is willing, you can negotiate the terms of the purchase agreement anonymously, but keep in mind that you will not have a binding contract until it is actually signed by both parties. A Realtor® should never sign a contract on behalf of an undisclosed buyer – or even arrange for someone else to do so without the involvement of an attorney.
