I have a client who inherited an apartment in Israel in 2017.  He and his brothers are now joint owners of the property.  I have the documentation showing transfer of title and an estimate of the value of the property.  I had thought that I would need to report this as an asset on 8938 and FinCEN 114, but it appears that foreign real estate that is directly held does not need to be reported on either form.  I also understand that the client does not have (and did not have) any bank accounts or other assets in Israel - just the property.  We are filing an extension for other reasons, so there should be time to double check and confirm.  Given the potential penalties, I am cautious.

1. Am I reading the forms and instructions clearly, and is it not required to file 8938 and 114 given the facts and circumstances above?

2. If we file a 4868, do I also understand that there are no additional steps required to ask for an extension for 114?