In a decision handed down by the Regional Labor Court of Minas Gerais (TRT/MG), residential property purchased by a third party in good faith is not subject to seizure due to a labor lawsuit filed after the sale of the property to the third party.
It is considered fraud of execution for a seller to sell his property when a labor action is in progress, however, if the debtor sells his property before filing the labor action to a third party who proves good faith, the seizure directed at the sold property must be canceled, which was what was understood in the decision handed down in this specific case, whose property was acquired through a contract of
purchase and sale of property before the filing of the labor execution, not presuming fraudulent behavior, even if the sale of the property has not been registered.
The decision was based on TST Summary 84, according to which “The opposition of third-party objections based on allegations of possession arising from the purchase and sale agreement of real estate is admissible, even if it is not registered”.
