We wanted to share a brief update regarding the ongoing litigation involving Flowers Title Companies, LLC and the U.S. Department of the Treasury’s Financial Crime Enforcement Network.
As a result of the ongoing appeal, the Financial Crimes Enforcement Network (FinCEN) has published three additional frequently asked questions (FAQs) to provide guidance in light of March 19, 2026, order by the U.S. District Court for the Eastern District of Texas vacating the Residential Real Estate (RRE) Rule.
Frequently Asked Questions
1. What is the status of the Residential Real Estate (RRE) Rule?
On March 19, 2026, a judge in the U.S. District Court for the Eastern District of Texas ruled that FinCEN lacked legal authority to issue the Residential Real Estate Rule (RRE Rule) and, accordingly, ordered that the RRE Rule be vacated. This order renders the RRE Rule without legal effect so long as the order remains in force, meaning covered entities are not required to file reports at this time.
In contrast, two other judges have rejected challenges to the RRE Rule, and FinCEN, through the U.S. Department of Justice, is appealing the order vacating it.
2. Are reporting persons currently required to file Real Estate Reports?
No. 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 court’s order remains in force.
3. If the order is overturned, will reporting persons be required to retroactively file Real Estate Reports for transfers that otherwise would have been reportable while the order was in effect?
No. If the court’s order is overturned and the RRE Rule again becomes legally effective, reporting persons will not be required to file reports for covered transactions that would have been required to be reported while the court’s order was in force. If the order is overturned, FinCEN will provide further guidance on when reporting will be required.
We will continue to monitor developments closely and provide updates as additional information becomes available.