I Bought a Property with an Irregular Title Registration: What Now?

For many individuals and companies, purchasing a property is one of the most significant investments of their lives. However, buyers do not always receive a property with its documentation in order. When a property’s title registration (matrícula) contains irregularities, the situation can affect possession, ownership, and even the ability to resell the asset.

In this article, we explain what an irregular title registration means, the legal risks for the buyer, possible judicial and extrajudicial outcomes, and the measures that can be taken to preserve rights and avoid losses.

1. What Is an Irregular Title Registration?

The matrícula is the official document that individualizes the property at the competent real estate registry office (cartório de registro de imóveis). It records the origin of ownership, transfers, physical characteristics, encumbrances, and other registry acts.

A title registration is considered irregular when:

·         The property does not yet have an individualized registration (e.g., an undivided fractional share without subdivision);

·         The registration is non-existent, canceled, or contradictory;

·         There is a discrepancy between the physical reality and the description in the registration;

·         There are pending lawsuits, liens, or duplicate registrations;

·         The property results from an illegal subdivision or irregular land parceling.

2. What Are the Risks for Those Who Bought a Property with an Irregular Registration?

a) Inability to register the public deed

Without a valid registration, the buyer cannot record the transfer of ownership—meaning they remain only as a possessor, not as a legal owner.

b) Loss of the property to third parties acting in good faith

In some cases, the property may be claimed in court by another holder with a valid and prior registration, creating a risk of eviction (loss of the asset).

c) Difficulty obtaining financing or reselling

Financial institutions require a regular registration to grant loans with real estate as collateral. Without it, the property loses liquidity and market value.

d) Liability for hidden obligations or overdue taxes

Properties with irregular registration often conceal tax, environmental, or condominium debts that may be charged to the current occupant.

3. I Bought Without Knowing. What Can I Do?

1. Assess the extent of the irregularity

Obtain an up-to-date certificate from the registry office and, if necessary, a topographical or legal report. Many irregularities can be corrected through administrative procedures, such as:

·         Construction annotation (averbação);

·         Area correction (retificação de área);

·         Subdivision or unification;

·         Regularization through the REURB program (Law No. 13.465/2017).

2. Attempt extrajudicial regularization

If the seller can be located and is cooperative, it may be possible to execute the deed or an addendum, gather documents, and proceed with regularization at the registry office and city hall.

3. Seek judicial regularization or termination

If regularization is impossible or the seller acted in bad faith or with significant omission, the buyer may:

·         File a lawsuit for contract termination and restitution of amounts paid;

·         Claim damages, if proven losses exist;

·         Request adjudicação compulsória (compulsory conveyance) if full payment has been made and the seller unjustifiably refuses to regularize.

4. Case Law on Irregular Registration and Buyer Protection

“A buyer of a property with an irregular registration may seek contractual termination and restitution of amounts paid, especially when registration is impossible.” (TJSP – Civil Appeal 1021844-53.2021.8.26.0002)

“Material and moral damages are owed to a good-faith buyer who acquires a property without an individualized registration and is prevented from registering ownership.” (TJMG – Civil Appeal 1.0000.20.514353-9/001)

“The absence of registration prevents the acquisition of real property rights and is not equivalent to mere possession or a promise to purchase and sell.” (STJ – REsp 1.027.063/SP)

5. How to Protect Yourself Before Buying a Property

Companies and individuals should conduct rigorous legal due diligence before purchasing, with proper technical and documentary support:

·         Request an updated title registration certificate and negative certificates (tax, civil, environmental);

·         Verify the registration status and land subdivision compliance (especially in subdivisions and rural properties);

·         Prefer executing a public deed with a clause requiring registration and legal guarantees;

·         Make final payment conditional upon proof of regularization of the registration;

·         In the case of a fractional share, require proof of the feasibility of future individualization (approved project, REURB, registration in progress).

6. Final Considerations

Acquiring a property with an irregular registration can jeopardize not only ownership rights but also the buyer’s investment and asset security. Good faith does not eliminate the legal consequences of irregularity, although it is considered by courts when protecting an injured buyer.

If the registration is compromised, swift action with legal support is essential. In many cases, it is still possible to regularize the situation administratively or through court proceedings, avoiding permanent losses.

Preventive and corrective legal counsel is critical both to identify risks before purchase and to develop safe strategies for regularization or compensation.