Goldberg Segalla partners Laura A. Colca and Jason A. Ganfer authored the article “FinCEN’s Residential Real Estate Rule: Essential Insights for New York Attorneys,” published by Attorney at Law Magazine.

The rule, which took effect on March 1, 2026, imposes reporting requirements on certain non-financed transfers of residential real estate to legal entities such as LLCs. Although a federal court struck down the rule in late March, the ruling is likely to be appealed, making it critical for attorneys to continue monitoring developments.

Laura and Jason examine how the rule interacts with New York property law, particularly in distinguishing between common deed structures. A quitclaim deed that reserves a life estate while transferring a remainder interest to an LLC is treated as an immediate transfer of a present ownership interest, triggering FinCEN reporting obligations.

By contrast, transfer-on-death (TOD) deeds do not convey any present interest during the grantor’s lifetime. Because ownership transfers only upon death, and FinCEN exempts such transfers, TOD deeds fall outside the rule, even when an LLC is the beneficiary. The distinction also carries important tax consequences, including potential step-up in basis benefits for TOD transfers.

The article also explores broader implications for litigators and attorneys handling real estate disputes. Because the rule applies broadly and without a monetary threshold, even routine settlements, such as boundary or vesting disputes, may trigger reporting requirements. As the authors note, careful planning is critical to avoid unintended compliance issues.

“Failure to comply with the FinCEN Residential Real Estate Rule may result in civil and even criminal liability for the party at the top of the reporting cascade,” they say. “Attorneys across multiple practice areas should monitor the evolving FAQ guidance on FinCEN’s website and remain vigilant as new interpretations are issued.”

READ THE FULL ARTICLE HERE: “FinCEN’s Residential Real Estate Rule: Essential Insights for New York Attorneys” Attorney at Law Magazine, June 16, 2026

MORE ABOUT GOLDBERG SEGALLA’S LAURA A. COLCA:

Laura is a highly skilled transactional and corporate counselor, intellectual property attorney, and litigator who brings 30 years of experience to her practice. She is a trusted legal advisor to a wide variety of clients, including manufacturing and technology companies, construction and development companies, retail and hospitality franchises, media entities, higher education institutions, nonprofits, and small and family-owned businesses. Laura has an extensive background in construction contract review and counsel, and she has successfully negotiated numerous seven- and eight-figure construction contracts, helping clients navigate complex terms and mitigate risk.

MORE ABOUT GOLDBERG SEGALLA’S JASON A. GANFER:

Jason is a partner in the firm’s Business and Commercial practice, managing commercial and residential real estate transactions as well as complex title litigation. His real estate transactional work includes representing buyers, sellers, and developers in purchases, sales, leases, and financing. Jason regularly assists developers in the acquisition and financing of blocks of cooperative and condominium units and helps cooperative and condominium boards with transfers to trusts and LLCs.

An experienced litigator, Jason has represented clients in complex commercial matters related to real estate and title, including fraud, boundary disputes, forgery, and lien priority disputes. He has helped title insurance companies in coverage disputes with their insureds and represented insured lenders through title companies where their insured lien is sought to be extinguished by parties alleging mortgage fraud.