What Families and Family Offices Need to Know
What Happened: A federal district court has vacated the FinCEN residential real estate reporting rule (the “Rule”) that we highlighted in a Client Alert earlier this month.
What It Means: All compliance obligations are now suspended nationwide for families, family offices and other reporting persons—no FinCEN reports need to be filed while the Texas order remains in effect.
What’s Next: Additional developments are likely, as the Texas decision directly conflicts with a February 2026 Florida federal court ruling which upheld the Rule. FinCEN may appeal the Texas decision or seek a stay pending appeal, either of which could reactivate reporting obligations on short notice. Alternatively, FinCEN may pursue a revised or narrower rule given the conflicting federal court decisions.
What To Do Now: Families and family offices should continue to monitor developments closely, as the regulatory landscape remains uncertain and may shift rapidly. But for the moment:
- No filings are required: Because the Rule has been vacated, as of March 19, 2026, there is no enforceable legal obligation to file residential real estate reports with FinCEN for pending or recently closed transactions.
- Preserve your compliance infrastructure: Although reporting is suspended, retaining the internal processes, data‑collection protocols and workflows developed in anticipation of the Rule may prove valuable if the reporting regime is reinstated or modified.
- Stay alert for updates: Given the evolving landscape, families and family offices should watch for news and remain in close contact with their attorneys and advisors.
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