Question 1

Does the new FinCEN rule apply to every home sale in Hawai‘i?

Accepted Answer

No. It generally applies only to certain non-financed residential transfers to legal entities or trusts, and only when no exception applies. Traditional financed purchases and purchases by individuals are commonly outside the rule.

Question 2

When did the rule start?

Accepted Answer

The reporting requirement applies to covered transfers occurring on or after March 1, 2026.

Question 3

Are all-cash purchases automatically reportable?

Accepted Answer

No. An all-cash purchase by itself is not enough. The buyer also generally must be a qualifying legal entity or trust, and the transfer must not fall under an exception.

Question 4

If I buy in my personal name, is the transfer usually covered?

Accepted Answer

Usually no. There is generally no reporting requirement when the homebuyer is an individual.

Question 5

Can a vacant land purchase be covered?

Accepted Answer

Yes, in some cases. Vacant or unimproved land can be covered if the transferee intends to build one to four residential units on it.

Question 6

Who files the report?

Accepted Answer

Usually a professional involved in the closing or settlement process files it. The buyer does not usually file the report personally.

Question 7

Is a real estate agent usually the reporting person?

Accepted Answer

No. A real estate agent acting only as an agent is generally not the reporting person, unless that agent is also performing a covered settlement or closing function.

Question 8

What buyer information may be requested?

Accepted Answer

In covered deals, the closing side may request entity or trust details, beneficial owner information, signing authority details, and payment-source information. In some cases, the financial institution name and account number tied to the payment may be requested.

Question 9

Does the rule only affect luxury homes?

Accepted Answer

No. The rule is based on transaction structure, not price tier. Covered transfers must be reported regardless of purchase price.

Question 10

Why does this feel more relevant in Kona and on the Kohala Coast?

Accepted Answer

Because these markets have a higher share of cash purchases, second-home buyers, trust ownership, LLC ownership, and cross-border transactions. Those are common structures in Hawai‘i and are more likely to intersect with the rule in practice.

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Archive for March 5, 2026

FinCEN Real Estate Reporting Rule in Hawai‘i