Date Filed: April 17, 2025
Original Court: U.S. District Court for the Northern District of Texas, Lubbock Division
Case Status: Motion for Summary Judgment Filed
Jason Corley owns an average house in a little town called Slaton, Texas. To help make ends meet, he is considering transferring the house into a limited liability company (LLC) and renting it out for extended periods of time. But under a new regulation, he will have to disclose a range of private, sensitive information to the federal government just for carrying out this completely normal, completely local transfer.
Zach Long is a real estate attorney. He helps Texans like Jason make these sorts of routine local property transfers. Under the new rule, he could be put in prison and charged devastating fines if he doesn’t file a report with the federal government containing Jason’s private information.
In August 2024, an agency within the U.S. Treasury called “FinCEN” published “Anti-Money Laundering Regulations for Residential Real Estate.” These regulations require Zach and Jason to help the federal government create a nationwide database of housing transfers that can be accessed by a legion of federal, state, and even foreign agencies. Zach and Jason are required to give that database information like Jason’s address, social security number, and information about his LLC regardless of whether he is even suspected of any crime.
Since the founding, real estate has been a matter of state concern, not a matter for the federal government. The Framers discussed the issue in the Federalist Papers and cemented it in the Constitution by expressly reserving all power to the states and the people unless specifically granted to the federal government. Nowhere does the Constitution grant the federal government authority over inherently local matters like real estate.
The federal government attempts to justify this burdensome regulation on the Commerce Clause—a source of power that has been increasingly abused in America for the past century. The Center for the American Future is representing Zach and Jason in the fight against federal encroachment, arguing that the regulation is neither necessary nor proper for regulating interstate commerce. This litigation will reinstitute the proper boundaries of the Commerce Clause and restore the Constitution’s careful balance of power.
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