Underwriting Q & A | Is there a new reporting requirement issued by the U.S. Department of the Treasury for closings on some properties in Texas and Florida to aid in the collection of information for financial crimes enforcement?

Q: Is there a new reporting requirement issued by the U.S. Department of the Treasury for closings on some properties in Texas and Florida to aid in the collection of information for financial crimes enforcement?

A: Yes, a GTO (geographic targeting order) was issued for Bexar County, Texas and Miami-Dade, Broward and Palm Beach Counties, Florida, starting August. 28, 2016. The transactions that fall within the reporting requirement are:  (i) the property is residential (1-4 family); (ii) The sales price for Bexar County is $500,000 or more or $1,000,000 or more for the Florida counties; (iii) the purchaser is a legal entity, such as a corporation, LLC or partnership; (iv) no bank or lender is involved; and (v) any part of the purchase funds (including the earnest money deposit) are received via cash or a check, whether a personal check, business check or a cashier’s check, certified check, official check etc. Wired funds are excluded.

The title agent closing the transaction must file the report with the Dept. of the Treasury within 30 days of the closing. Agents must use FinCen Form 8300 for the reporting.  The reporting requires the inclusion of the information relative to the transaction as well as information derived from the authority or organizational  documents for all entities in the transaction and for the beneficial owners that own 25% or more of the entity.