Firm and Legal News

For compliance officers and legal professionals who spent the early months of 2026 preparing for the new FinCEN Residential Real Estate Reporting Rule, last week brought a significant development: a federal court struck down the rule entirely. The decision vacates the regulation nationwide — but with conflicting rulings across circuits, the compliance landscape remains anything but settled. Background: What Was the FinCEN Real Estate Reporting Rule? The Residential Real Estate Reporting Rule, which took effect on March 1, 2026, was FinCEN’s most ambitious attempt to date to close a well-documented gap in the U.S. anti-money laundering (AML) framework. Unlike residential mortgages — which are already subject to robust Bank Secrecy Act (BSA) reporting — all-cash real estate transactions had largely flown under the regulatory radar. The rule targeted non-financed transfers of residential real property where the buyer was a legal entity or trust. Under its terms, “reporting persons” (primarily title companies, escrow agents, and settlement attorneys) were required to: Identify and verify the beneficial owners of purchasing entities and trusts Collect detailed information about the transferee, transferor, and the property File a Real Estate Report with FinCEN within 30 days of closing Retain records for five years Unlike FinCEN’s earlier Geographic Targeting Orders (GTOs), the new rule carried no geographic limitation or minimum transaction threshold — making it the broadest real estate AML reporting mandate ever issued. The Court’s Decision: Flowers Title Companies v. FinCEN The challenge came from Flowers Title Companies, LLC, a Texas-based title company that filed suit under the Administrative Procedure Act (APA), arguing that FinCEN had exceeded the statutory bounds of the Bank Secrecy Act in issuing the rule. Judge Jeremy D. Kernodle of the Eastern District of Texas agreed. The court held that cash real estate transfers to entities and trusts are not categorically “suspicious” within the meaning of the BSA — the foundational basis FinCEN relied upon to justify the rule. Without the ability to rely thereupon, the agency now appears to lack the authority to impose the sweeping reporting requirements at issue. The result: the rule is vacated in its entirety, restoring the pre-March 1 status quo. Title companies and other covered persons have no current obligation to file Real Estate Reports under the vacated regulation. Why This Matters for Compliance and Legal Teams For compliance professionals, the ruling creates a complex and potentially short-lived reprieve. Here’s what to keep in mind: Reporting is currently suspended — but not permanently. The government is widely expected to appeal to the Fifth Circuit. Conflicting precedent creates legal uncertainty. Other federal courts have recently upheld the rule as lawful, meaning the law in this area is genuinely unsettled. GTOs remain in effect. FinCEN’s existing Geographic Targeting Orders in high-risk metro areas (including Miami, New York, Los Angeles, and others) are unaffected by this ruling. Compliance with active GTOs is still required. Internal readiness work retains value. Organizations that invested in beneficial ownership verification workflows, data collection systems, and training should preserve those efforts. If the rule is reinstated on appeal, a rapid ramp-up will be necessary. The Bigger Picture: AML and Real Estate The Flowers Title ruling is a setback, but not necessarily a death blow, to FinCEN’s long-term agenda around real estate AML. The U.S. real estate market has been identified by the Financial Action Task Force (FATF) and FinCEN itself as a significant vulnerability for money laundering. Whether through rulemaking, expanded GTOs, or Congressional action, regulators are unlikely to abandon this area. To learn more or to schedule a consultation, contact Joseph R. Marriott at joseph@snw.law or by telephone at (504)324-1886.

Construction Lien Property: What Every Buyer and Seller Needs to Know A construction lien on your property can stop a real estate closing in its tracks — here's what causes it and how to fix it. If you're buying or selling real estate and a contractor, subcontractor, or supplier was never paid for work done on the property, you could face a lien — and a closing that won't proceed until it's resolved. Understanding construction lien priority is essential for anyone in a real estate transaction. What Is Construction Lien Priority? Lien priority determines who gets paid first if a property is sold or foreclosed. In most states, construction-related liens — also called mechanic's liens or materialman's liens — can "relate back" to the date work first began, not the date the lien was filed. This means a lien recorded after your mortgage could still outrank it. 4 Common Ways Lien Priority Breaks Down at Closing Construction began before the mortgage was recorded — giving material man, contractors and subcontractors, priority over the lender. Unpaid subcontractors on a newly built home file liens the buyer never knew about. The seller failed to record a notice of completion, leaving the lien filing window open. Recording errors or gaps in the chain of title create disputed priority positions. How It Disrupts the Closing Cycle When a title examiner flags a construction lien — or evidence that work occurred without confirmed payment — the title insurer will typically refuse to issue a clean policy. Without title insurance, lenders won't fund. The result: delays, renegotiations, escrow holdbacks, or a failed transaction. How to Resolve a Construction Lien Before Closing – Additional Work and Costs  While the below are all valid ways to potentially "work around" a lien and/or broken priority, they are requiring additional and often uncontemplated work and can include unanticipated costs, including getting lien waiver, paying the lienholder, securing a surety bond, and/or negotiated an indemnity (when backed by sufficient assets). To learn more or to schedule a consultation, contact Joseph R. Marriott at jospeh@snw.law or by telephone at (504)324-1886.

Testate vs. Intestate Successions in Louisiana: What’s the Difference? In Louisiana, a succession is classified as either testate or intestate depending on whether the decedent left a valid will. A testate succession occurs when the decedent executed a will that complies with Louisiana law, typically in the form of a notarial or olographic testament. In these cases, the decedent is able to direct how their property is distributed, name an executor, and potentially simplify the administration process. The court’s role is to probate the will, confirm the executor, and oversee the implementation of the decedent’s wishes. However, even in a testate succession, the will is subject to certain limitations, most notably Louisiana’s forced heirship rules, which protect certain heirs such as children under the age of 24 or those with permanent disabilities. An intestate succession occurs when there is no valid will, either because the decedent never executed one or because the will is invalid or revoked. In that situation, Louisiana’s intestacy statutes determine who inherits and in what proportions. These rules prioritize close family members, beginning with descendants, and can include a surviving spouse’s usufruct over community property. While intestacy provides a default framework, it often produces results that do not align with the decedent’s preferences, particularly in blended families or where the decedent had specific intentions about certain assets. Practically speaking, testate successions tend to offer more control and predictability, while intestate successions can involve more court oversight, uncertainty, and potential disputes among heirs. Even basic estate planning, such as executing a will and organizing your assets, can significantly reduce stress, cost, and uncertainty for your family after your death. To learn more or to schedule a free consultation regarding estate planning or successions, contact Johnston Burkhardt at johnston@snw.law or 504-313-4199.

How Long Does a Succession Take in Louisiana? The timeline for completing a succession in Louisiana varies widely depending on the facts of the case, and there is no fixed deadline under Louisiana law. A succession can be filed at any time immediately following death. In a simple, uncontested succession with a small number of heirs and clearly identifiable assets, the process can often be completed in a matter of just a few months. A succession administrator will be appointed shortly after filing, and that person can immediately access bank accounts, pay expenses of the succession, sell property, and manage the assets and debts of the succession. This is especially true where the parties are cooperative, the decedent left a valid will, and the succession can proceed through independent administration or by affidavit in the case of a qualifying small succession. Early organization of key documents, such as asset lists, titles, and account information, can significantly streamline the process. On the other hand, more complex successions can take a year or longer. Delays frequently arise when the estate includes immovable property that requires title work, business interests that must be valued, or creditor claims that need to be resolved. Additional complications can include locating and placing heirs in possession, addressing disputes among heirs, or litigating issues such as will contests or challenges to the administration. Court scheduling, required notices, and procedural steps can also extend the timeline. While some delays are unavoidable, proactive planning, clear communication among heirs, and experienced legal guidance can help move the succession forward more efficiently and reduce the risk of prolonged administration. Even basic estate planning, such as executing a will and organizing your assets, can significantly reduce stress, cost, and uncertainty for your family after your death. To learn more or to schedule a free consultation regarding estate planning or successions, contact Johnston Burkhardt at johnston@snw.law or 504-313-4199.

What to Do When a Tax Sale Only Gets You Part of the Property Buying property at a tax sale in Louisiana does not always mean you own the entire property. In many cases, you only acquire the interest of the owner who failed to pay taxes. That means you may end up owning a percentage of the property—not the whole thing—alongside other owners. The first step is to confirm and quiet the tax title. This is a court process that formally recognizes your ownership of the interest you purchased at the tax sale. It does not give you full ownership of the property, but it solidifies your rights to the percentage you acquired. Once that is done, you become a co-owner with whoever owns the remaining interest. From there, you have a few practical options. You can try to work out a deal with the other owner and purchase their share. This is often the simplest and fastest way to gain full ownership, especially if the other party is willing to sell. If that is not possible, you have the right to force a resolution through a partition. This is a legal process that ends the co-ownership. In some cases, the property can be physically divided, but more often it is sold. When the property is sold, the proceeds are split between the owners based on their ownership percentages. In short, even if a tax sale only gives you part of a property, you still have a clear path forward. By confirming your title and then pursuing a buyout or partition, you can turn a partial interest into real, usable value.  To learn more or to schedule a free consultation regarding tax sales or real estate law, contact Johnston Burkhardt at johnston@snw.law or 504-313-4199.

Who Inherits Your Property When You Die Without a Will in Louisiana? If you die without a will in Louisiana, your property is distributed according to the state’s intestacy laws. These laws create a fixed order of inheritance that determines who receives your assets, regardless of what you may have intended. While the system is designed to follow a logical family hierarchy, it often produces results that do not reflect modern family dynamics or personal wishes. In most cases, if you have children, they will inherit your property. If you are married at the time of your death, your surviving spouse does not automatically receive full ownership of community property. Instead, the spouse typically receives a usufruct over your share of the community property, while your children inherit naked ownership. This means your spouse can use and benefit from the property during their lifetime or until remarriage, but your children ultimately own it. Your separate property, however, generally passes directly to your children without any usufruct in favor of the surviving spouse. If you do not have children, the law looks to other family members in a specific order. Your parents and siblings are next in line. If both parents are alive, they may inherit your separate property, while siblings may inherit subject to certain usufruct rights. If your parents are deceased, your siblings typically inherit. From there, the law continues to more remote relatives, such as grandparents, aunts, uncles, and cousins, depending on who survives you. Importantly, certain people you may expect to inherit have no rights under Louisiana intestacy law. Unmarried partners, stepchildren, and close friends are not included, no matter how close the relationship. This can lead to unintended consequences, especially in blended families or long-term partnerships where no will has been executed. In addition to determining who inherits, intestate successions often require more court involvement because there is no will to guide the process or appoint a representative. This can increase costs, delay administration, and create the potential for disputes among heirs. For these reasons, even a basic estate plan, such as a properly executed will, can ensure that your property is distributed according to your wishes and can make the process significantly easier for your family. Even basic estate planning, such as executing a will and organizing your assets, can significantly reduce stress, cost, and uncertainty for your family after your death. To learn more or to schedule a free consultation regarding estate planning or successions, contact Johnston Burkhardt at johnston@snw.law or 504-313-4199.

Estate Planning in Louisiana: Understanding Forced Heirs Louisiana’s forced heirship laws are unique and can significantly affect how a person structures their estate plan. Unlike most states, Louisiana law requires that certain children receive a portion of a parent’s estate, regardless of what a will provides. These children are known as forced heirs.  Under the Louisiana Civil Code, there are two categories of forced heirs. 1. Children Under the Age of 24 A child of the decedent who is 23 years old or younger at the time of the parent’s death is considered a forced heir. If a parent dies while leaving a child under 24, that child is entitled to a reserved portion of the estate known as the forced portion. The forced portion is 25% of the estate if there is one forced heir, or 50% of the estate if there are two or more forced heirs. The remaining portion of the estate (the disposable portion) may be left to anyone the testator chooses. 2. Adult Children with Permanent Disabilities A child of any age can be a forced heir if they are permanently incapable of caring for themselves or managing their affairs due to a mental incapacity or physical infirmity. This category often includes adult children with significant intellectual or developmental disabilities. Because these children may require long-term care and financial support, Louisiana law ensures they cannot be disinherited. Planning Considerations Forced heirship requires careful estate planning. In many cases, a forced heir’s portion can be placed into a trust, allowing the inheritance to be managed responsibly while still complying with Louisiana law. For families with minor children or children with special needs, it is especially important to work with an estate planning attorney to structure a plan that complies with Louisiana law while protecting the long-term interests of the family. If you have questions about forced heirship or need assistance preparing a will or trust, consulting with an experienced Louisiana estate planning attorney can help ensure your plan is legally sound and tailored to your family’s needs. To learn more or to schedule a free consultation, contact Johnston Burkhardt at johnston@snw.law or 504-313-4199.

Chelsea Cusimano : Accrued Vacation, Bonuses and Wages May All Be on the Table.

FinCEN's New Real Estate Reporting Rule Is Now in Effect — Here's What You Need to Know 1. The Rule is Live — Nationwide As of March 1, 2026, a landmark new Residential Real Estate Rule from the Financial Crimes Enforcement Network (FinCEN) requires federal reporting of certain residential real estate transactions. 2. Why It Exists The U.S. Treasury has long recognized that illicit use of residential real estate threatens national economic security, and this rule is designed to combat and deter money laundering at scale. 3. A Permanent, Nationwide Replacement Unlike FinCEN's previous Geographic Targeting Order framework — which imposed reporting obligations based on location, price, and property type — this new rule applies nationwide and captures a far greater number of transfers. 4. The Three-Part Trigger In plain terms, FinCEN is targeting transactions with three defining features: residential real estate, a buyer that is not a natural person (such as an LLC, corporation, partnership, or trust), and no traditional bank mortgage tied to the purchase (any organization that is not subject to Anti-Money Laundering regulation). 5. Private Financing Doesn't Exempt You Private financing arrangements, including hard money loans, do not qualify as institutional financing for exemption purposes, meaning many deals once considered routine may now trigger federal disclosure requirements. 6. Covered Property Types Covered properties include one-to-four family homes, condominiums, cooperatives, and certain unimproved land intended for residential use. 7. Who Must File While settlement agents and title companies are expected to bear the brunt of the reporting obligations, escrow providers and legal professionals may also be designated reporting persons depending on the transaction structure. 8. Limited Exemptions Apply The rule contains limited exemptions, including transfers occurring by reason of death, divorce, court order, or bankruptcy proceedings — and these exemptions are narrowly defined and must be evaluated carefully. 9. Filing Deadline The Real Estate Report must be filed by the last day of the month following the month of closing, or 30 days after closing — whichever is later. 10. Act Now Given the breadth of the new rule, residential property owners, investors, and real estate professionals should consult legal counsel early to ensure compliance, avoid unexpected closing delays, and properly allocate reporting responsibilities. For more information or to schedule a consult with a real estate attorney, contact Joseph Marriott at (504) 324-1886 or joseph@snw.law , or Johnston Burkhardt at (504) 324-2141 or johnston@snw.law . Disclaimer: This blog post is for informational purposes only and does not constitute legal or financial advice. Consult qualified legal counsel for guidance specific to your transactions.

How to Prepare for a Family Law Mediation Session Family law mediation works best when everyone comes to the table prepared. Mediation is not about surprise tactics or courtroom drama—it’s about informed decision-making, efficiency, and reaching an agreement that you are comfortable with and can live with long after the session ends. If you are scheduled for a family law mediation, there are two simple steps you should take in advance to set yourself up for success. 1. Complete the Mediation Questionnaire Thoroughly and Honestly Before mediation, clients are asked to complete a detailed intake questionnaire. This document is not busywork. It provides the mediator with essential background information about your case, including the issues to be resolved, areas of agreement, and areas of dispute. Take the time to fill it out completely and accurately. The more information the mediator has in advance, the more productive your session will be. Incomplete or rushed responses often lead to time being spent during mediation just clarifying basic facts—time that could otherwise be used to work toward resolution. 2. Gather Financial Documents in Advance For cases involving child support, spousal support, or property partition, having reliable financial information is essential. Mediation depends on realistic numbers, not estimates or assumptions. You should gather documents that reflect: Your current income (recent pay stubs, tax returns, or other income records) Bank account balances Retirement accounts and investment statements Real estate values Outstanding debts, including mortgages, credit cards, loans, and other liabilities You do not need to organize these documents perfectly or create spreadsheets unless instructed to do so. Simply having accurate, up-to-date records available allows discussions to stay grounded in reality and prevents delays caused by missing information. Why Preparation Matters Mediation is designed to be efficient, cost-effective, and respectful. When both parties arrive prepared, sessions tend to move faster, cost less, and result in clearer, more durable agreements. Preparation also gives you confidence. Knowing your financial picture and having thought through your priorities allows you to focus on solutions rather than reacting under pressure. If you and your spouse or co-parent are looking for a more respectful, efficient path forward, SNW’s Family Law Mediation Practice may be a good fit. To learn more or to schedule a consultation with SNW’s mediator, Johnston Burkhardt, contact him today at johnston@snw.law or 504-313-4199.

Partitioning Co-Owned Property in Louisiana Co-ownership of real estate can work—until it doesn’t. When co-owners disagree on use, management, or sale of a property, Louisiana law provides a clear exit: partition. The Right to Partition  Under Louisiana law, no one can be forced to remain in co-ownership. Any co-owner of immovable property—whether they own 1% or 99%—has the right to demand partition at any time, unless that right has been lawfully waived for a limited period. This right applies regardless of how the co-ownership arose: inheritance, divorce, tax sale, joint purchase, or otherwise. Types of Partition There are two primary forms of partition: Partition in Kind The property is physically divided among the co-owners. This is only possible when the property can be fairly and practically split without substantially diminishing its value. For most residential properties, this is not feasible. Partition by Licitation (Judicial Sale) When the property cannot be conveniently divided, the court orders the property sold—typically at sheriff’s sale—and the proceeds are distributed among the co-owners in proportion to their ownership interests. This is the most common form of partition for houses, condos, and single parcels of land. The Procedure If co-owners cannot agree to sell or divide the property voluntarily, a co-owner may file a petition for partition in the parish where the property is located. The process generally includes filing a lawsuit naming all co-owners as defendants, getting all the parties served, obtaining a court order directing a judicial sale, and distribution of sale proceeds after payment of costs and approved expenses. Costs and Reimbursement Costs associated with the partition—including court costs, appraisal fees, and certain necessary expenses incurred for the preservation of the property—are typically paid from the sale proceeds before distribution. In appropriate cases, a co-owner who advanced funds to protect or maintain the property may be entitled to reimbursement. To learn more or to schedule a consultation with an experienced real estate attorney, contact Johnston Burkhardt at johnston@snw.law or 504-313-4199.