The post Lawsuit Challenges A New Rule Requiring Reporting Details Of Cash Real Estate Purchases appeared on BitcoinEthereumNews.com.

A new reporting requirement would require reporting for cash real estate purchases. getty A lawsuit filed in the Eastern District of Texas this month could upend another Treasury reporting rule. Months after the Treasury announced it would not enforce the Corporate Transparency Act (CTA) against domestic companies, Flowers Title Companies LLC d/b/a East Texas Title Companies v. Bessent aims to block a new rule requiring data collection—this time focused on reporting for cash residential real estate purchases. In 1993, Celia Flowers, a Texas attorney, bought the first of many title companies she now owns (the company’s website boasts 11 offices). Today, Flowers and her daughter, Erica Hallmark, own and manage East Texas Title Companies, based in Tyler, Texas, a mid-sized city located about an hour and a half southeast of Dallas. Title companies typically assist with transferring property ownership during a real estate transaction. That can involve researching and clearing title searches and assisting with real estate closings. East Texas Title Companies claims it handles thousands of such real estate closings each year. Some of those closings have involved cash purchases, subjecting them to a new Treasury reporting requirement. East Texas Title Companies is pushing back on the reporting requirement with a lawsuit, claiming the rule is burdensome and unconstitutional. Reporting Requirement In 2024, the Financial Crimes Enforcement Network (FinCEN) finalized a rule to require title companies to collect and report detailed information about non-financed residential real estate sales to legal entities (including small businesses), trusts, and shell companies. The rule would not require the reporting of sales to individuals. For purposes of the rule, non-financed means that it does not involve an extension of credit secured by the transferred property and extended by a financial institution subject to existing reporting obligations—no commercial mortgage or paid for by cash, for…

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Filed under: News - @ April 25, 2025 7:19 pm