NEWSLETTER

February 2026 Real Estate News from Premier Homes & Country Estates

Year of the Horse

February 17th Starts the Year of the Horse

WINE COUNTRY ROUNDUP

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Market Watch

NEW Federal Residential Real Estate Rule Starts March 1, 2026

The Department of the Treasury has long recognized that the illicit use of residential real estate threatens U.S. economic and national security and can disadvantage those that seek to compete fairly in the U.S. real estate market. This reporting requirement is designed to increase transparency in the U.S. residential real estate sector and to combat and deter money laundering.

Certain professionals involved in real estate closing and settlements are required to submit reports to FinCEN regarding non-financed transfers of residential real estate to certain types of legal entities or trusts. This requirement applies only to certain kinds of transfers of real property known as “reportable transfers.”

 • What is FinCEN? The Financial Crimes Enforcement Network is a bureau of the Treasury Department tasked with safeguarding the United States financial system from illicit activity, such as money laundering and terrorist financing.

Cartels, foreign dictators, and fraudsters use opaque legal and trust structures to anonymously buy American homes with dirty money.

 • This can distort markets and disadvantage legitimate buyers and sellers. Hiding behind legal entities and trusts to purchase residential property obscures ownership, shielding criminals from investigation, and also allows criminals to exploit the real estate market, which can increase home prices, making it harder for legitimate buyers to purchase real estate.

Real Estate Reports will be securely filed with FinCEN.

  • Real Estate Reports will be maintained by FinCEN in a secure database with strict limits on authorized access and use.
  • Real Estate Reports are not accessible to the general public

A Real Estate Report must be filed for any reportable transfer occurring on or after March 1, 2026. Beginning on March 1, 2026, Real Estate Reports generally must be filed 30 to 60 days after the date of closing.

Transfer is reportable when all four conditions are met:

  1. The real property is residential, including land;
  2. The transfer is non-financed, including cash, seller financing, and exchanges;
  3. The property is transferred to a certain type of entity or trust;
  4. An exception does not apply.

For more information and updates, click here.

Supporting Value Beyond the Property Line

Q : Why are my property taxes so high they seem to be creeping up every year?

A : Real estate (property) taxes primarily fund local government services, including public school districts, police and fire protection, road maintenance, and sanitation. These taxes, based on property value, also support libraries, parks, and municipal employee salaries, often accounting for a significant portion of local municipal budgets. States with no or low state income taxes need funding for all these services. Big cities often cost much more to operate, and the older the city, the more costly too.

  1. Public Schools: A major portion of property tax revenue goes toward school district operations, teacher salaries, and infrastructure. And pensions. I think educated kids are a good thing for society at large … and the economy.
  2. Public Safety: Funding for police departments, fire departments, and emergency medical services (EMS). (Yes, I am a law-abiding citizen, and would happily pay only when and if I need a cop, fireman, etc for my home, but what would our towns/cities look like if there were no active, daily law enforcement? How would this be paid for? What would happen if there were a pay-as-you-go system, but people could not afford what would inevitably be exorbitant fees?)

  3. Infrastructure & Transportation: Maintenance and construction of roads. (I often wonder where THIS tax goes for Petaluma Streets!) highways, bridges, and sidewalks. (I too would prefer not paying for this, but do I drive on those roads and bridges? Yes! Does my Uber? Yes! As do my yard maintenance people driving to my home)

  4. Municipal and Community Services: Public parks, recreational facilities, libraries, and social services. (Who will pay for this? Which ‘select few’ will have to foot the bill? Take these things out of a town and watch what happens to real estate values…..?)

Real estate taxes are collected by local governments—counties, cities, towns, and school districts—to support local amenities that directly affect community quality of life ….and property values.

Towns/cities/suburbs without these amenities and services cannot function. Are there abuses and careless overspending? Inefficiencies that require urgent attention? Of course. Maybe in that lies real solutions, but eliminating real estate taxes simply means that lost income has to be made up elsewhere. If states eliminate property taxes, they’d replace the lost revenue (around 70% of local funds) with increased sales taxes, higher income taxes, new fees/licenses, or by creating dedicated funds from eliminated exemptions, but these shifts often raise concerns about disproportionately burdening lower-income residents, affecting local services like schools and police, and potentially requiring significant rate increases or new revenue streams.

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PCE is Now a Member of
Compass Ranch and Land!

Started in 2021, the Compass Ranch & Land Division represents a peerless network of American ranch real estate professionals. Our proprietary platform makes life simpler for agents, buyers and sellers alike.

Click here for more information.

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Premier Homes & Country Estates Activity

SOLD OFF MARKET 2 OFFERS RECEIVED

4401 Burnside Rd, Sebastopol

3 BD 2 BA 18+/- Acres
Listed for $1,800,000
Sold for $1,995,000

4401 Burnside Road Sebastopol 2

A Timeless Treasure on 18± Bucolic Acres

Step back in time with this enchanting vintage home, originally built in 1870 by Owen Burns (Burnside)—a piece of Sonoma County history, rich with character and nestled on approximately 18 acres of rolling countryside. Enjoy sweeping views of the Santa Rosa Plain, the Mayacamas Mountains, and all the way to The Geysers.

Inside, the home features beautiful hardwood floors throughout and an inviting country kitchen full of charm. The spacious layout includes three generously sized bedrooms and two bathrooms. The living room boasts breathtaking vistas, a wood-burning fireplace, and custom built-ins—perfect for cozy evenings. Just off the living room, a sun-drenched solarium with tall ceilings adds extra warmth and light.

A detached granny unit offers additional potential with a little updating. Outside, you’ll find a fenced garden, a barn, and a rustic (non-permitted) “party barn”—ideal for gatherings or creative useAnd don’t miss one of the property’s true marvels: possibly one of the largest black walnut trees in the world!

PCE EXCLUSIVE

West Petaluma

113+/- Acres
$5,750,000

west petaluma horse property

Spanning 110+/- gorgeous acres with sweeping panoramic views. Call for details!

NEW PRICE

411 Highland Ave, Penngrove

7 BD 5 BA 8.11+/- AC
$2,995,000

Highland Ave Penngrove

The property holds a rare use permit authorizing events of up to 300 attendees, in addition to permissions for horse boarding and operation of a commercial veterinary hospital. The use permit allows for an Equine Therapy Inpatient Addiction Treatment Center. Purpose-built to accommodate a wide range of equestrian disciplines, The Reis Ranch is ideally suited for horse shows, boarding, training, private and group instruction, clinics, workshops, and other large-scale gatherings. Facility highlights include a partially covered arena measuring approximately 70′ x 225′ with exceptional footing, a round pen, heated classroom, 30 stalls equipped with video monitoring, three pastures, seven outdoor paddocks, a hay and shavings barn, administrative office, and 3-phase electrical service. The five legal residences provide substantial accommodations for owners, staff, and guests, offering versatility for a variety of operational or residential needs.

PCE EXCLUSIVE

206 H Street, Petaluma

2 BD 1 BA. 953+/- Sqft
$875,000

H Street Petaluma

Don’t miss this Turn of the Century Home which is walking distance to downtown restaurants, shopping and annual events. Large front porch brings you back to days gone by. Mixed-Use Zoning may allow many possibilities for this property. Especially in this continued work from home environment. Home comes with large living room, dining room and kitchen. Hardwood floors, high baseboard, custom wainscoting and decorative shelved along with built in cabinets. So many period touches make this property oh so special.

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