Published: January 19, 2026

BOI & FinCEN Reporting: What Buyers, Sellers, and LLCs Need to Know Before Closing in 2026

As real estate transactions move into 2026, buyers, sellers, investors, and real estate professionals are encountering an important federal compliance requirement that can impact closings: Beneficial Ownership Information (BOI) reporting through the Financial Crimes Enforcement Network (FinCEN).

These reporting requirements are now fully in effect. While BOI reporting exists outside of the real estate contract itself, a lack of understanding can create confusion, delays, or last-minute issues—especially when limited liability companies (LLCs) or other business entities are involved in a transaction.

Aristocrat Title believes education and preparation are essential to a smooth closing experience. Below is a high-level overview of what parties should understand heading into 2026

What Is FinCEN and BOI Reporting?FinCEN is a bureau of the U.S. Department of the Treasury responsible for helping prevent money laundering, fraud, and other illicit financial activity. As part of this effort, many U.S. business entities are now required to file Beneficial Ownership Information (BOI) reports.

A BOI report generally identifies:

• Individuals who own or control a company

• Basic identifying information for those individuals

• Key formation details about the entity

These requirements apply nationwide and affect many entities commonly used in real estate ownership.Who May Be Required to File

BOI reporting often applies to:

• Limited liability companies (LLCs)

• Corporations

• Certain partnerships and business entities

This includes many:

• Real estate investment entities

• Holding companies

• Family or estate planning entities

While exemptions do exist, many small entities are required to comply.

Why BOI Reporting Matters for Real Estate Closings

Although title companies do not file BOI reports, compliance awareness is important during a real estate transaction. Aristocrat Title is seeing increased questions related to:

• Whether an entity was required to file

• Filing deadlines for new versus existing entities

• Whether compliance affects the ability to close

• Requests for documentation that parties were not expecting

Addressing these questions early helps prevent unnecessary stress as closing approaches.

Filing Deadlines: A General Overview

BOI reporting deadlines depend on when an entity was formed:

• Entities formed in prior years typically have a longer window to comply

• Newly formed entities may face significantly shorter deadlines

Because requirements vary based on entity structure and timing, parties should consult with their attorney or CPA for specific guidance.

The Role of the Title Company

Aristocrat Title plays an important role in coordination and communication, but does not provide legal or tax advice.

Aristocrat Title can:

• Encourage early preparation

• Identify potential compliance considerations

• Coordinate closing timelines with all parties

Aristocrat Title cannot:

• File BOI reports on behalf of clients

• Determine whether an entity is exempt

• Provide legal or tax advice

Understanding this distinction helps ensure accuracy and compliance.

How Buyers, Sellers, and Investors Can Avoid Delays

To help keep transactions on schedule in 2026:

• Identify early if an LLC or business entity is involved

• Confirm BOI reporting obligations well before closing

• Work with legal or tax professionals as needed

• Communicate proactively with real estate agents and the title company

Preparation remains the most effective way to avoid last-minute complications.

Closing with Confidence in 2026

BOI and FinCEN reporting are now a permanent part of the real estate landscape. While the requirements may seem complex, early awareness and clear communication help ensure a smooth closing process.

Aristocrat Title remains committed to guiding clients, agents, and investors through today’s evolving real estate environment with professionalism, clarity, and confidence.

Aristocrat Title provides trusted, locally owned closing services throughout Southern Indiana and Greater Louisville. To schedule a closing, call 812.282.8704.