“The federal government is cracking down on home cash purchases targeting properties purchased to all cash by LLCs, Corporation, Trust and more. For years this type of purchases were flying under the radar and they were keeping the homeowners names anonymous. And that’s all about to change.”
The claim references a supposed federal government crackdown on all-cash home purchases by LLCs, corporations, and trusts, aimed at ending anonymous ownership. This likely refers to a proposed regulation by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), announced in February 2024, to increase transparency in residential real estate transactions.
The rule targets non-financed (all-cash) purchases of residential properties by legal entities, trusts, and shell companies, requiring real estate professionals like title insurers and closing attorneys to report beneficial ownership information to FinCEN. The goal is to combat money laundering, as all-cash transactions often lack the scrutiny applied to financed deals, allowing illicit funds to be hidden through anonymous entities. Treasury estimates $2.3 billion was laundered through U.S. real estate between 2015 and 2020.
The rule was proposed in February 2024, finalized in August 2024, and took effect March 1, 2025. It requires reporting for non-financed residential property transfers to entities or trusts, including details on beneficial owners and property, but does not apply to individual buyers. While this increases transparency, it’s not a ban on cash purchases, and enforcement depends on FinCEN’s resources, which critics argue are limited.