PART 1031—RULES FOR PERSONS INVOLVED IN REAL ESTATE CLOSINGS AND SETTLEMENTS Authority: 12 U.S.C. 1829b, 1951-1959; 31 U.S.C. 5311-5314, 5316-5336; title III, sec. 314 Pub. L. 107-56, 115 Stat. 307; sec. 701 Pub. L. 114-74, 129 Stat. 599; sec. 6403, Pub. L. 116-283, 134 Stat. 3388. Source: 89 FR 70290, Aug. 29, 2024, unless otherwise noted. Subparts A-B [Reserved] Subpart C—Reports Required to be Made by Persons Involved in Real Estate Closings and Settlements § 1031.320 Reports of residential real property transfers. (a) General. (b) Reportable transfer. (i) Real property located in the United States containing a structure designed principally for occupancy by one to four families; (ii) Land located in the United States on which the transferee intends to build a structure designed principally for occupancy by one to four families; (iii) A unit designed principally for occupancy by one to four families within a structure on land located in the United States; or (iv) Shares in a cooperative housing corporation for which the underlying property is located in the United States. (2) A reportable transfer does not include a: (i) Grant, transfer, or revocation of an easement; (ii) Transfer resulting from the death of an individual, whether pursuant to the terms of a decedent's will or the terms of a trust, the operation of law, or by contractual provision; (iii) Transfer incident to divorce or dissolution of a marriage or civil union; (iv) Transfer to a bankruptcy estate; (v) Transfer supervised by a court in the United States; (vi) Transfer for no consideration made by an individual, either alone or with the individual's spouse, to a trust of which that individual, that individual's spouse, or both of them, are the settlor(s) or grantor(s); (vii) Transfer to a qualified intermediary for purposes of 26 CFR 1.1031(k)-1; or (viii) Transfer for which there is no reporting person. (c) Determination of reporting person. (i) The person listed as the closing or settlement agent on the closing or settlement statement for the transfer; (ii) If no person described in paragraph (c)(1)(i) of this section is involved in the transfer, then the person that prepares the closing or settlement statement for the transfer; (iii) If no person described in paragraph (c)(1)(i) or (ii) of this section is involved in the transfer, then the person that files with the recordation office the deed or other instrument that transfers ownership of the residential real property; (iv) If no person described in paragraphs (c)(1)(i) through (iii) of this section is involved in the transfer, then the person that underwrites an owner's title insurance policy for the transferee with respect to the transferred residential real property, such as a title insurance company; (v) If no person described in paragraphs (c)(1)(i) through (iv) of this section is involved in the transfer, then the person that disburses in any form, including from an escrow account, trust account, or lawyers' trust account, the greatest amount of funds in connection with the residential real property transfer; (vi) If no person described in paragraphs (c)(1)(i) through (v) of this section is involved in the transfer, then the person that provides an evaluation of the status of the title; or (vii) If no person described in paragraphs (c)(1)(i) through (vi) of this section is involved in the transfer, then the person that prepares the deed or, if no deed is involved, any other legal instrument that transfers ownership of the residential real property, including, with respect to shares in a cooperative housing corporation, the person who prepares the stock certificate. (2) Employees, agents, and partners. (3) Financial institutions. (4) Designation agreement. (ii) A designation agreement shall be in writing, and shall include: (A) The date of the agreement; (B) The name and address of the transferor; (C) The name and address of the transferee entity or transferee trust; (D) Information described in in paragraph (g) identifying transferred residential real property; (E) The name and address of the person designated through the agreement as the reporting person with respect to the transfer; and (F) The name and address of all other parties to the agreement. (d) Information concerning the reporting person. (1) The full legal name of the reporting person; (2) The category of reporting person, as determined in paragraph (c) of this section; and (3) The street address that is the reporting person's principal place of business in the United States. (e) Information concerning the transferee Transferee entities. (i) The following information for the transferee entity: (A) Full legal name; (B) Trade name or “doing business as” name, if any; (C) Complete current address consisting of: ( 1 ( 2 (D) Unique identifying number, if any, consisting of: ( 1 ( 2 ( 3 (ii) The following information for each beneficial owner of the transferee entity: (A) Full legal name; (B) Date of birth; (C) Complete current residential street address; (D) Citizenship; and (E) Unique identifying number consisting of: ( 1 ( 2 ( i ( ii (iii) The following information for each signing individual, if any: (A) Full legal name; (B) Date of birth; (C) Complete current residential street address; (D) Unique identifying number consisting of: ( 1 ( 2 ( i ( ii (E) Description of the capacity in which the individual is authorized to act as the signing individual; and (F) If the signing individual is acting in that capacity as an employee, agent, or partner, the name of the individual's employer, principal, or partnership. (2) Transferee trusts. (i) The following information for the transferee trust: (A) Full legal name, such as the full title of the agreement establishing the transferee trust; (B) Date the trust instrument was executed; (C) Unique identifying number, if any, consisting of: ( 1 ( 2 (D) Whether the transferee trust is revocable; (ii) The following information for each trustee that is a legal entity: (A) Full legal name; (B) Trade name or “doing business as” name, if any; (C) Complete current address consisting of: ( 1 ( 2 (D) Unique identifying number, if any, consisting of: ( 1 ( 2 ( 3 (E) For purposes of this section, an individual trustee of the transferee trust is considered to be a beneficial owner of the trust. As such, information on individual trustees must be reported in accordance with the requirements set forth in paragraph (e)(2)(iii) of this section; (iii) The following information for each beneficial owner of the transferee trust: (A) Full legal name; (B) Date of birth; (C) Complete current residential street address; (D) Citizenship; (E) Unique identifying number consisting of: ( 1 ( 2 ( i ( ii (F) The category of beneficial owner, as determined in paragraph (j)(1)(ii) of this section; and (iv) The following information for each signing individual, if any: (A) Full legal name; (B) Date of birth; (C) Complete current residential street address; (D) Unique identifying number consisting of: ( 1 ( 2 ( i ( ii (E) Description of the capacity in which the individual is authorized to act as the signing individual; and (F) If the signing individual is acting in that capacity as an employee, agent, or partner, the name of the individual's employer, principal, or partnership. (f) Information concerning the transferor. (1) The following information for a transferor who is an individual: (i) Full legal name; (ii) Date of birth; (iii) Complete current residential street address; and (iv) Unique identifying number consisting of: (A) An IRS TIN; or (B) Where an IRS TIN has not been issued: ( 1 ( 2 (2) The following information for a transferor that is a legal entity: (i) Full legal name; (ii) Trade name or “doing business as” name, if any; (iii) Complete current address consisting of: (A) The street address that is the legal entity's principal place of business; and (B) If the principal place of business is not in the United States, the street address of the primary location in the United States where the legal entity conducts business, if any; and (iv) Unique identifying number, if any, consisting of: (A) An IRS TIN; (B) In the case that the legal entity has not been issued an IRS TIN, a tax identification number issued by a foreign jurisdiction and the name of such jurisdiction; or (C) In the case that the legal entity has not been issued an IRS TIN or a foreign tax identification number, an entity registration number issued by a foreign jurisdiction and the name of such jurisdiction; and (3) The following information for a transferor that is a trust: (i) Full legal name, such as the full title of the agreement establishing the trust; (ii) Date the trust instrument was executed; (iii) Unique identifying number, if any, consisting of: (A) IRS TIN; or (B) Where an IRS TIN has not been issued, a tax identification number issued by a foreign jurisdiction and the name of such jurisdiction; (iv) For each individual who is a trustee of the trust: (A) Full legal name; (B) Current residential street address; and (C) Unique identifying number consisting of: ( 1 ( 2 ( i ( ii (v) For each legal entity that is a trustee of the trust: (A) Full legal name; (B) Trade name or “doing business as” name, if any; (C) Complete current address consisting of: ( 1 ( 2 (D) Unique identifying number, if any, consisting of: ( 1 ( 2 ( 3 (g) Information concerning the residential real property. (1) The street address, if any; (2) The legal description, such as the section, lot, and block; and (3) The date of closing. (h) Information concerning payments. (i) The amount of the payment; (ii) The method by which the payment was made; (iii) If the payment was paid from an account held at a financial institution, the name of the financial institution and the account number; and (iv) The name of the payor on any wire, check, or other type of payment if the payor is not the transferee entity or transferee trust. (2) The reporting person shall report the total consideration paid or to be paid by the transferee entity or transferee trust regarding the reportable transfer, as well as the total consideration paid by or to be paid by all transferees regarding the reportable transfer. (i) Information concerning hard money, private, and other similar loans. (j) Reasonable reliance General. (2) Certification when reporting beneficial ownership information. (k) Filing procedures What to file. (2) Where to file. (3) When to file. (i) the final day of the month following the month in which the date of closing occurred; or (ii) 30 calendar days after the date of closing. (l) Retention of records. (m) Exemptions Confidentiality. (2) Anti-money laundering program. (n) Definitions. (1) Beneficial owner Beneficial owners of transferee entities. (B) The beneficial owners of a transferee entity that is established as a non-profit corporation or similar entity, regardless of jurisdiction of formation, are limited to individuals who exercise substantial control over the entity, as defined in 31 CFR 1010.380(d)(1) on the date of closing. (ii) Beneficial owners of transferee trusts. (A) A trustee of the transferee trust. (B) An individual other than a trustee with the authority to dispose of transferee trust assets. (C) A beneficiary who is the sole permissible recipient of income and principal from the transferee trust or who has the right to demand a distribution of, or withdraw, substantially all of the assets from the transferee trust. (D) A grantor or settlor who has the right to revoke the transferee trust or otherwise withdraw the assets of the transferee trust. (E) A beneficial owner of any legal entity that holds at least one of the positions in the transferee trust described in paragraphs (n)(1)(ii)(A) through (D) of this section, except when the legal entity meets the criteria set forth in paragraphs (n)(10)(ii)(A) through (P) of this section. Beneficial ownership of any such legal entity is determined under 31 CFR 1010.380(d), utilizing the criteria for beneficial owners of a reporting company. (F) A beneficial owner of any trust that holds at least one of the positions in the transferee trust described in paragraphs (n)(1)(ii)(A) through (D) of this section, except when the trust meets the criteria set forth in paragraphs (n)(11)(ii)(A) through (D). Beneficial ownership of any such trust is determined under this paragraph (n)(1)(ii), utilizing the criteria for beneficial owners of a transferee trust. (2) Closing or settlement agent. (3) Closing or settlement statement. (4) Date of closing. (5) Non-financed transfer. (i) Secured by the transferred residential real property; and (ii) Extended by a financial institution that has both an obligation to maintain an anti-money laundering program and an obligation to report suspicious transactions under this chapter. (6) Ownership interest. (i) Through a deed, for a reportable transfer described in paragraph (b)(1)(i), (ii), or (iii) of this section; or (ii) Through stock, shares, membership, certificate, or other contractual agreement evidencing ownership, for a reportable transfer described in paragraph (b)(1)(iv) of this section. (7) Recordation office. (8) Signing individual. (9) Statutory trust. (10) Transferee entity. (ii) A transferee entity does not include: (A) A securities reporting issuer defined in 31 CFR 1010.380(c)(2)(i); (B) A governmental authority defined in 31 CFR 1010.380(c)(2)(ii); (C) A bank defined in 31 CFR 1010.380(c)(2)(iii); (D) A credit union defined in 31 CFR 1010.380(c)(2)(iv); (E) A depository institution holding company defined in 31 CFR 1010.380(c)(2)(v); (F) A money service business defined in 31 CFR 1010.380(c)(2)(vi); (G) A broker or dealer in securities defined in 31 CFR 1010.380(c)(2)(vii); (H) A securities exchange or clearing agency defined in 31 CFR 1010.380(c)(2)(viii); (I) Any other Exchange Act registered entity defined in 31 CFR 1010.380(c)(2)(ix); (J) An insurance company defined in 31 CFR 1010.380(c)(2)(xii); (K) A State-licensed insurance producer defined in 31 CFR 1010.380(c)(2)(xiii); (L) A Commodity Exchange Act registered entity defined in 31 CFR 1010.380(c)(2)(xiv); (M) A public utility defined in 31 CFR 1010.380(c)(2)(xvi); (N) A financial market utility defined in 31 CFR 1010.380(c)(2)(xvii); (O) An investment company as defined in section 3(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(a)) that is registered with the Securities and Exchange Commission under section 8 of the Investment Company Act (15 U.S.C. 80a-8); and (P) Any legal entity controlled or wholly owned, directly or indirectly, by an entity described in paragraphs (n)(10)(ii)(A) through (O) of this section. (11) Transferee trust. (ii) A transferee trust does not include: (A) A trust that is a securities reporting issuer defined in 31 CFR 1010.380(c)(2)(i); (B) A trust in which the trustee is a securities reporting issuer defined in 31 CFR 1010.380(c)(2)(i); (C) A statutory trust; or (D) An entity wholly owned by a trust described in paragraphs (n)(11)(ii)(A) through (C) of this section. § 1031.321 [Reserved]