Buying with Cash? Here’s the New Rule Starting December 1, 2025
If you’re planning to buy with cash, there’s an important change on the horizon.
Beginning December 1, 2025, a new federal rule will require certain all-cash real estate transactions to be reported to the Financial Crimes Enforcement Network (FinCEN, part of the U.S. Treasury Department.
It’s called the Residential Real Estate Anti-Money-Laundering Rule (or RRE Rule), and it’s designed to bring more transparency and safety to real-estate deals across the country.
Why the Rule Exists
For years, the government only required special reporting in select “hot-spot” markets like New York or Miami. That changes this year.
Starting in December, these same reporting standards will apply nationwide ---with no minimum purchase price and coverage for any home bought without a traditional mortgage.
The goal? To prevent illegal funds from being hidden in real estate and keep the market fair for everyone.
How It Works
When a home or land is purchased in cash or through non-traditional financing, your escrow or settlement agent will now file a quick report to FinCEN.
This includes:
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Who’s really behind the purchase ---even if it’s through a company or trust
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How the property was paid for (cash, wire, or crypto)
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Basic information about both the buyer and the seller
If you’re buying through an LLC or trust, be ready to share ownership names and tax IDs early in escrow.
Who’s Affected
This new rule applies to:
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Cash purchases of homes, condos, or vacant land intended for residential use
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Entity buyers (LLCs, corporations, partnerships, or trusts)
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Transactions using private lenders or no institutional financing
In other words, if a bank isn’t involved, the deal will likely be reportable.
What It Means for Lake Tahoe Buyers and Sellers
At Tahoe Beach Club and throughout the Lake Tahoe real-estate market, cash purchases are common ---especially for second homes or investment properties.
That means these new requirements could apply to many local transactions.
Buyers and sellers should plan a little extra time for escrow while title companies collect the necessary information. It’s mostly paperwork — but being proactive now will make closings smoother later.
Why It’s a Good Thing
This rule isn’t meant to complicate home buying ---it’s meant to protect honest buyers and sellers by keeping real-estate ownership transparent. It’s one more step toward stronger, safer markets and peace of mind at closing.
If you’re planning a cash purchase or sale in the next year, I’d be happy to walk you through what to expect and help you prepare ahead of the change.
Call me and call Tahoe home.
Information sourced from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and First American Title resources. This article is for informational purposes only and not legal advice.
Cover Photo by Jakub Żerdzicki on Unsplash
