Corporate Transparency Act and Real Estate: 2026 Changes

There has been yet another shift in federal beneficial-ownership reporting requirements for businesses involved in real estate transactions. In August 2026, the Financial Crimes Enforcement Network (FinCEN) finalized a rule permanently removing Corporate Transparency Act (CTA) beneficial-ownership reporting requirements for U.S.-formed companies. This is generally viewed as a positive development amongst real estate investors. Foreign entities that qualify as reporting companies remain subject to certain reporting requirements.

This change is particularly relevant to real estate investors who use limited liability companies, corporations, partnerships, to purchase and hold property as investments. Under the revised CTA framework, an entity formed in the United States generally no longer must file a beneficial ownership information report with FinCEN solely because it owns or purchases real estate. The new rule also provides for deletion of certain previously submitted information concerning U.S. companies and U.S. persons.

Real estate professionals should also distinguish the CTA from a separate FinCEN initiative involving residential real estate transactions. That rule, which took effect December 1, 2025, would have required reporting of certain non-financed residential property transfers involving entities and trusts. However, on March 19, 2026, a federal court in Texas vacated that rule. FinCEN has subsequently confirmed that covered parties are not currently required to file reports while the court’s order remains in effect and while the matter is pending on appeal.

For buyers, sellers, and title companies, the takeaway is that the two separate reporting regimes should not be confused. The CTA now has a substantially narrower scope, while the residential real estate reporting rule remains subject to ongoing litigation. State-level disclosure requirements may also apply independently.

This article is for informational purposes only and is not intended to constitute legal advice.