In April 2025, the 3rd Panel of the Brazilian Superior Court of Justice (STJ) reaffirmed that the sale of real estate can only be considered fraud against execution if a lien is already registered on the property’s title. In other words, the mere existence of a pending lawsuit is not enough — the judicial lien must be formally recorded in the land registry to alert third parties to potential legal risks.
The case involved a company that sold a property after a tax enforcement proceeding had begun but before the lien was registered. The tax authority claimed the sale was fraudulent. However, the STJ ruled that, since the lien had not been recorded at the time of the sale, the buyer had no way of knowing about the legal dispute — which rules out the presumption of bad faith.
The decision reinforces the Court’s consistent position on the importance of public registry transparency. To ensure legal certainty in real estate transactions, the Court emphasized that third parties acting in good faith cannot be held liable for judicial measures that were not properly disclosed through official registration.
Our technical team remains at your disposal for any clarifications or assistance you may require.