Texas Court Vacates FinCEN Residential Real Estate Rule

On March 19, 2026, the U.S. District Court for the Eastern District of Texas, in Flowers v. Bessent ruled against FinCEN and vacated the Residential Real Estate Rule (“RRE Rule”). This ruling is not final and remains subject to appeal.

FinCEN has confirmed that reporting persons are not currently required to file real estate reports and will not be subject to liability for failure to do so while the court’s order remains in effect.

We will continue to closely monitor developments and provide updates regarding applicability and compliance obligations. Please do not hesitate to contact us with any questions.

For additional background, please refer to our prior publication, “Understanding the New Residential Real Estate Rule (RRER): What Buyers, Sellers and Real Estate Professionals Need to Know.”