Used car transfer can be done by cell phone, without a notary and with money in custody

Buyer and seller of a used car will be able to complete the transfer of ownership without leaving home, in a single flow within the CNH do Brasil application. The legal basis already exists: Resolution No. 1,027 of the National Traffic Council (Contran), approved on August 17 and published in the Official Gazette of the Union the following day, created the rules for the operation at the national level. The function in the application, however, is not yet live and has no set date.

When the resource is released, it will be possible to register the negotiation, electronically sign the transfer, consult and settle vehicle debts and fees, and finalize the change of ownership without separate steps. The implementation is in charge of the National Traffic Secretariat (Senatran), linked to the Ministry of Transport, and is valid for business between individuals involving used vehicles.

The resolution regulates a provision that was already contained in the Brazilian Traffic Code and creates three types of transfer: conventional, electronic and electronic custody. In electronics, the steps are now completed digitally, with integration with the National Registry of Motor Vehicles (Renavam).

Money in custody is the main novelty

The electronic modality in custody is the one that brings the unprecedented mechanism. In it, the amount paid for the car is retained during the process and is only released to the seller after all the transfer requirements are met — a protection against the classic scenario of those who pay and do not receive the documentation, or deliver the vehicle and do not receive the payment.

The rule also provides for what happens when the deal crashes: there are mechanisms to block the process, reverse the operation and refund the amounts to the buyer. To reduce the risk of fraud, the text requires individual authentication of the parties, verification in more than one step, audit records and traceability of operations.

Inspection and fees continue

Digitalization does not eliminate all requirements. The vehicle identification inspection remains mandatory when the legislation so determines, which means taking the car to an authorized unit, according to the rules of the DMV of each state — the result, however, is automatically integrated into the system. State transfer fees also continue to be charged.

On the other hand, the electronic signature does not require notarization in the operations made by the application. Part of the path was already paved: the Authorization for Transfer of Vehicle Ownership in electronic media (ATPV-e), the digital signature and the communication of sale already work today. What the resolution does is stitch these pieces together in a single procedure.