The Brazilian Car Sale Trap

You’ve sold your car in Brazil. You signed the paperwork, received payment, and handed over the keys. Yet months later, you start receiving traffic tickets for violations you never committed. Then come tax bills.

The problem? According to government records, you’re still the owner. It turns out the buyer never transferred the vehicle into their name.

Under Brazilian law, buyers generally have 30 days to register a vehicle in their name. But once the buyer drives away, there’s no guarantee they’ll follow through. And if they don’t, you could be left dealing with the consequences.

That’s precisely what happened to one seller in the state of São Paulo. After facing traffic fines, unpaid vehicle charges, and a lawsuit arising from an accident, he took the matter to court. A judge ordered the buyer to complete the transfer and pay BRL$5,000 in moral damages. The court also directed the traffic authorities to reassign debts and license points incurred after the sale.

Fortunately, sellers aren’t entirely helpless. If a buyer fails to complete the transfer within 30 days, the seller has 60 days to notify the traffic authorities. Otherwise, the seller remains jointly liable for traffic and administrative penalties until the sale is reported.

And it’s not just cars. The same problem can arise when selling real estate in Brazil. If the buyer fails to update the relevant government records, the seller may continue receiving property-related charges long after the sale.

In either case, completing the necessary registrations can be just as important as completing the sale itself.