TJ-MS rules out fraud against execution in property sale without attachment

The 1st Civil Chamber of the Court of Justice of Mato Grosso do Sul (TJ-MS) ruled that there was no fraud against execution in a case involving the sale of a property during the course of enforcement proceedings based on an extrajudicial title. The Court held that, at the time of the transaction, there was no record of attachment or restriction in the property’s registry, which removed the presumption of fraud against execution under Article 792, IV, of the Code of Civil Procedure (CPC) and Precedent 375 of the Superior Court of Justice (STJ).

Furthermore, the buyers of the property demonstrated that they acted in good faith, carrying out proper due diligence, such as reviewing the updated property registry, obtaining clearance certificates, and securing a certificate of asset unavailability, which reinforced the absence of bad faith in the transaction. The Court therefore overturned the first-instance decision, which had invalidated the sale, and upheld the effectiveness of the transaction, as there was no concrete evidence indicating that the buyers were aware of disputes or the seller’s potential insolvency.

With this decision, the TJ-MS reaffirms the need for concrete evidence to characterize fraud against execution, preventing the annulment of valid transactions without proof of intent or bad faith on the part of those involved.

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