Santa Catarina Court rules on vehicle transfer liability

The 3rd Special Chamber of the Court of Justice of Santa Catarina has ruled that vehicle buyers are responsible for traffic fines, administrative charges, and tax debts incurred after the delivery of a vehicle, even if the formal transfer of ownership has not been registered with traffic authorities.

The case originated in Rio do Sul, where a former owner used a vehicle as part of a payment for a new car. Although the parties agreed to complete the registration transfer within 30 days, the change was never finalized. Consequently, the former owner began receiving notifications for infractions committed by the new owners.

While Article 134 of the Brazilian Traffic Code generally holds the former owner responsible until the sale is communicated to the authorities, the court determined that this rule can be relativized in civil relations when it is proven that infractions occurred after the effective transfer of the vehicle.