Beginning March 1, 2026, new federal reporting requirements aimed at combat money laundering in cash transactions were scheduled to take effect. The Financial Crimes Enforcement Network (FinCEN) reporting would be generally required for cash transfers of residential real property by an entity (such as an LLC) or trust. Covered property included single-family homes of up to 4 family units as well as vacant land intended for construction of homes. The rule stated that when an entity acquired residential property using cash, a report be submitted to FinCEN with details about the property, purchase price, and the individuals who owned or controlled the buyer. In Arizona escrow companies were expected to request this information from the buyer using a form. However in early March a federal court issued an injunction staying the application of the law. Whether its validity will be upheld or will survive in its present form is yet to be determined.
