FinCEN's real estate rule is still off
Multi-state brokerage compliance — September 9, 2026. FinCEN's reporting rule is vacated and under appeal; Utah, Texas and California rules are already in effect; Virginia, Maryland and Washington are worth watching.
A weekly read on what changes for companies operating under real estate licenses in more than one state. Every item links to the primary source.
FinCEN's real estate reporting rule is still off
The Residential Real Estate Rule took effect March 1, 2026. A federal court in Texas struck it down eighteen days later, holding that FinCEN went past what the Bank Secrecy Act allows. FinCEN's guidance is plain: while that order stands, you are not required to file and you face no liability for not filing.
It may not stay that way. DOJ appealed to the Fifth Circuit and filed its brief in August. Two other district courts upheld the rule. The rule can switch back on with little warning.
What this means for you: if you buy single-family homes through entities or trusts, keep the beneficial-ownership intake your closing agents built in March. Don't file anything. Don't tear the process down either — building it was the expensive part, and FinCEN has said there will be no retroactive filing if the rule returns.
Source: FinCEN — Residential Real Estate Rule FAQs
Already in effect
Utah — property manager license, since July 1, 2026. Utah created a separate license class for property managers, and applications are open.
What this means for you: if you manage Utah property for someone else and nobody on the job holds a broker-level license, you are now operating inside a licensing regime that didn't exist last year. Sources: Utah Division of Real Estate · HB 337
Texas — written buyer agreements, since January 1, 2026. SB 1968 requires a written agreement with a buyer before you show residential property or make an offer for them.
What this means for you: your Texas entity needs the agreement signed before the showing, not after. Skipping it is grounds for discipline, not just a bad practice. Source: TREC
Texas — new IABS form, since January 1, 2026. The Information About Brokerage Services notice was rewritten to add non-representation status and drop subagency.
What this means for you: check what your platform, your templates and your website footer are actually serving. Handing out the old form is its own violation. Source: TREC — IABS
California — habitability, since January 1, 2026. A working stove and refrigerator are now part of the habitability standard for any lease entered, amended or extended on or after that date.
What this means for you: a renewal is an extension. Units you never thought of as changing hands are inside the new standard.
Coming, and worth handling early
Virginia — July 1, 2027. Nonpayment termination notices will have to include an itemized twelve-month statement of charges and payments, utility debits and credits included.
What this means for you: long runway, but your notice template and your accounting export both have to change, and those are separate projects. Cheaper now than in June 2027.
Not law yet — watch these
Utah. The statute is live but the rule that says how it works is still being drafted by a Real Estate Commission committee. Trust-account association and scope are both still open. HB 1002 already exempts managers who carry a bond covering at least 30% of estimated client funds. If you manage in Utah, this is the moment to comment. Source: HB 1002
Maryland. SB 130 / HB 220 was enacted this session. It allows water submetering in apartment houses and mobile home parks, bars you from passing through more than the water provider actually charges, and adds recordkeeping, leak-monitor and tenant-inspection duties. If you submeter or use RUBS in Maryland, start with your billing vendor and your lease language. Source: Maryland General Assembly — HB 220 fiscal and policy note
Washington. Department of Licensing guidance restates that a licensed professional can be paid commission only through the brokerage they're affiliated with. If you run referral fees or platform payouts, trace where the money lands — it has to end at a brokerage, not an entity.
What a regulator actually asks for
Almost nobody gets a complaint for the thing they did wrong. What starts an audit is a security deposit that didn't come back on time.
Once that letter arrives, the regulator asks for three things, in this order: your policy and procedure manual, proof that someone supervised the work, and your escrow reconciliation reports. Your leases and your ledgers are not on the list. The manual comes first because it's the quickest way to tell whether you're a company that meant to comply.
What this means for you: reconcile your books against your trust accounts monthly. That's the difference between answering the letter the same day and spending two weeks assembling one.
Elsewhere
- Utah — brokers, associate brokers and sales agents can still do property management. The new license adds a path, it doesn't close the old one.
- Illinois — don't name a minor as an eviction defendant. It dismisses the whole case, with penalty exposure if it was deliberate.
- Washington — 2026 rent increase limits and notice rules now govern renewals statewide.
- Florida — state preemption of local landlord-tenant rules holds. Two 2026 bills on mid-lease increases and vacation rentals died.
- California — SB 610 covers units made uninhabitable by disaster: debris removal, no rent during mandatory evacuations, prepaid rent and deposits back, penalty-free termination.
50 State Brokerage provides designated, managing and qualifying broker coverage in 30+ states for PropTech companies, SFR and build-to-rent operators, and property management firms. Book a call.
This describes regulatory developments and is not legal advice.