Buyer Agency Agreement Mandate
FinCEN Residential Real Estate Rule to Take Effect March 1st, 2026
The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has finalized implementation of new reporting requirements aimed at addressing money laundering and related illicit activity within residential real estate transactions. These requirements include new obligations for certain all-cash real estate transactions.
FinCEN’s Residential Real Estate Rule is now scheduled to take effect on March 1, 2026.
While this rule applies directly to residential real estate transactions, brokers who are involved in these transactions should be aware of the following key information.
Effective March 1st, 2026, FinCEN reporting will be required for non-financed (all cash) real estate transactions when the buyer is an entity (a business or trust, not an individual)
The legal obligation to submit reports falls on the settlement agent. In most transactions, this responsibility will be handled by title companies, not real estate brokers.
FinCEN’s reporting hierarchy includes parties involved in preparing the settlement statement, filing the property deed with the recorder’s office, underwriting title insurance, or disbursing funds related to the property transfer. Real estate brokers are not included among the reporting persons.
While brokers are not responsible for filing reports, they have a role in helping ensure that required information is identified and provided in a timely manner to prevent delays or disruptions at closing.
Some transactions may be exempt from the reporting requirement even if they otherwise meet the criteria. Exemptions may apply when a transfer occurs due to death, divorce, or bankruptcy; is court-supervised; involves a transfer to a trust in which the seller is also a grantor; or involves an investor completing a Section 1031 exchange to reduce capital gains liability.
This list is not intended to be exhaustive of all considerations. CREA and ICBR are not responsible or liable for any actions you take or do not take in response to this legal change.
What you need to do:
Begin educating licensees about the Real Estate Reporting Rule now, with emphasis on the March 1st effective date and the types of transactions that are affected, specifically all-cash purchases where the buyer is operating as a business (like an LLC) or trust.
Communicate proactively with title companies that regularly handle transactions for your brokerage to understand how they plan to complete and submit required reports, including anticipated timelines.
Reinforce that real estate brokers are not reporting persons under the rule. Brokers should assist clients through education and coordination, but should not complete or submit FinCEN reporting forms on a client’s behalf.
Questions?
View Frequently Asked Questions on FinCEN’s website here. REALTORS® also have the option to reach out to the IAR legal hotline if they have questions 1-800-444-5472.
For more information from the FinCEN, click here
Information courtesy of the Indiana Association of Realtors
Indiana Law Mandates Written Buyer Agency Agreements Began On July 1
StartingJuly 1, 2024, a written buyer agency agreement is required by Indiana law for licensed real estate brokers. As a courtesy, CREA is communicating this change to our members for your awareness.
Key Information:
- HEA1068 passed the Indiana General Assembly with unanimous support and was signed into law by Governor Eric Holcomb on March 11, 2024 to be effective July 1, 2024. Read more about the bill here.
- This mandate is required of residential and commercial real estate agents. All licensed real estate brokers in Indiana must follow this requirement – this includes REALTORS® and non-REALTORS®. The Indiana Real Estate Commission will enforce and regulate occupational practices.
- HEA1068 only requires that buyer representation be formalized in writing, with an expiration date, with the original retained by the buyer broker and a copy provided to the buyer client; this requirement applies to all Indiana real estate licensees.
- Agreements must be executed before a broker can begin negotiating on behalf of a buyer; it is advisable to secure signed agreements as early as possible (e.g. before the client shares confidential information).
- This amount must also be set in a “non-open-ended” way (for example, the agreement could establish a flat fee or percentage-of-sale-price commission, but could not say, “based on an offer from the seller”).
- Finally, the proposed settlement forbids any implication that buyer broker services are “free” to the buyer by assuming seller or listing broker cooperation.
- A buyer agreement must also include a disclaimer that broker compensation is fully negotiable and not set by law.
- This change has no bearing on lease transactions.
This list is not intended to be exhaustive of all considerations. CREA is not responsible or liable for any actions you take or do not take in response to this legal change.
What you need to do:
Make sure your real estate office is utilizing the most current version of the buyer agency agreement forms. These forms should be carefully reviewed and approved by a licensed commercial real estate attorney to ensure full compliance with Indiana law. Realtor members will have access to this updated form through ZipForms.
Questions?
If you have questions about these changes, please consult a qualified commercial real estate attorney or contact the Indiana Real Estate Commission at pla5@pla.in.gov or 317-232-2960. CREA does not have legal counsel on staff. REALTORS® also have the option to reach out to the IAR legal hotline if they have questions 1-800-444-5472.
For more information from the PLA, click here
Information courtesy of the Indiana Association of Realtors
Frequently Asked Questions Regarding the NAR Settlement for Commercial Practice (via IAR):
Q: Do the practice changes in the NAR settlement apply to commercial properties too?
A: The NAR settlement does not specifically address commercial properties. However, if the property is on the MLS and the Listing Broker is a REALTOR® member, then the practice changes contained within the NAR settlement will apply. Further, HEA 1068 would apply to all types of property. Effective July 1st, all real estate licensees are required to formalize their relationships with buyers via a written document that has a definite date of expiration. This new license law requirement includes both buyers of residential and commercial properties.
Q: Are commercial listing services that don’t pull from an MLS subject to the practice change prohibiting offers of compensation on an MLS?
A: No. That practice change prohibits offers of compensation on the MLS and it prohibits MLSs from allowing third parties to use MLS data to facilitate a platform for multiple brokerages to make offers of compensation.