💵 New FinCEN Rule for Cash Buyers: What Agents Must Know

Featuring insights from Andrew Tomko, Attorney at Infinity Title 🏦🔍

If you’re a cash buyer, work with cash investors, or you’re the title company or agent helping them close in Greater Cleveland or anywhere in Ohio, a big FEDERAL change is coming your way.

Hey everyone—Mike Ferrante here with Century 21 HomeStar and the 21 Mike Team, serving Greater Cleveland and the northern half of Ohio. If you’ve got an Ohio real estate need, head to 21mike.com and click the button at the top to schedule with me or someone on the team.

We invited Andrew Tomko, attorney with Infinity Title, to walk us through what’s changing and how to get ahead of it.

🧠 What’s Changing (In Plain English)

FinCEN (the Financial Crimes Enforcement Network) has announced a new nationwide reporting rule aimed at curbing money laundering, corruption, fraud, and terrorism financing in residential real estate.

Targeted deals:

All-cash purchases of residential property
Buyer takes title in an entity (e.g., LLC, corporation, trust)
No institutional lender with an anti-money-laundering (AML) program involved
- ⚠️ Hard money often does not satisfy AML requirements—assume this still applies unless confirmed otherwise.

Current timeline mentioned: December 1, 2025 (forms are still being finalized).
Penalties for willful violations discussed include: civil fines (up to $500/day) and criminal penalties (up to 2 years imprisonment and $10,000 in fines).

🔐 Goal: Increase transparency and give law enforcement better visibility into non-financed residential transactions involving entities.

📝 What Title Companies Will Need

Per the proposed forms reviewed by Infinity Title, buyers taking title in an entity should expect to provide beneficial owner info, including:

Full legal name
Date of birth
Residential address
Country of citizenship
Taxpayer ID / Social Security Number

👉 Title companies (like Infinity Title) will be expected to collect and report this in a prescribed timeframe (e.g., monthly filings).

🧭 Who This Hits Most in Northeast & Central Ohio

Cleveland remains a hotbed for out-of-state & out-of-country cash investors, many buying in LLCs.
Areas with active BRRRR, turnkey, and small multifamily activity (e.g., Old Brooklyn, West Park, Buckeye–Shaker, Collinwood, Slavic Village) will feel this most.
Listing agents and buyer agents working fast-moving cash offers should build this into their offer & escrow timelines.

✅ Action Plan: What to Do Right Now

For Buyer Agents (Cash + Entity)

Prep your buyer early:
- Gather beneficial owner details (see list above).
- Confirm operating agreement, signing authority, and Ohio registration (if applicable).
Loop in title at offer acceptance so they can begin their intake immediately.
Set expectations: This is federal, applies nationwide, and every title company will be asking.

For Listing Agents

Add a compliance clause to your addenda (sample language below).
Ask upfront if title will vest in an LLC/corp/trust and whether the buyer understands FinCEN compliance.
Protect your timeline so you’re not learning on day 29 that the deal can’t close.

Sample clause you can adapt (check with your broker/attorney):

“Within 5 business days of purchase agreement acceptance, Buyer shall provide the closing/title agent with all information required for FinCEN compliance (including beneficial ownership disclosures) and obtain written confirmation from the title agent that the submission is sufficient for filing. Failure to timely comply shall be deemed a failure to perform and may constitute default under this Agreement.”

(Not legal advice. Verify language with your broker/attorney.)

For Buyers Using Entities

Expect to provide owner identity details—even if you’ve used layered LLCs in the past.
If you don’t have an operating agreement or proper state registration, get that handled before you write an offer. (Infinity Title can connect you with counsel.)

💬 Common Questions We’re Hearing

Q: Does this apply to personal-name cash purchases?
A: No—entity or trust buyers are the focus.

Q: What about hard money loans?
A: Many hard money lenders do not maintain AML programs that satisfy the exception. Assume it applies unless the title company confirms otherwise.

Q: Can we still close if the buyer refuses to provide info?
A: Expect delays or no close. Title companies cannot risk non-compliance.

Q: Will there be extra fees?
A: Many title companies are evaluating process costs. Expect some fee and more time for data collection and verification.

🧩 Why This Can Actually Help Your Deals

Fewer dead-end “cash” offers: Compliance will weed out unserious buyers.
Smoother timelines for legitimate investors who prepare early.
Reduced risk for sellers and brokerages by confirming buyer legitimacy sooner.

🏁 Bottom Line for Cleveland & Ohio

This is federal, it’s coming soon, and every cash deal with entities will need to play by these rules. The win is simple: set expectations early, build compliance into your timelines, and lean on a knowledgeable title partner.

Huge thanks to Andrew Tomko (Infinity Title) for the guidance. Infinity Title is licensed statewide in Ohio and can help you navigate entity buyers, operating agreements, and FinCEN workflow.

⚖️ Disclaimer: This post is for general information and is not legal advice. Confirm specifics with your broker/attorney and your chosen title company.

📲 Need Help or Have a Cash Deal Brewing?

We work these scenarios every week across Cleveland, Northeast Ohio, and Central Ohio. Book a quick consult at 21mike.com and we’ll help you map the cleanest path to closing.

For more great Real Estate content:

You can listen to our Podcast FREE BEER AND REAL ESTATE, or on YouTube for Mike’s weekly classes!!!