In Portugal, the document that buys the house isn't the deed. It's the promissory contract, the CPCV, signed weeks or months earlier. By the time you sit in the notary's office, everything that matters has already been decided. This is the paper to take seriously.
What the CPCV is
The contrato-promessa de compra e venda is a legally binding preliminary contract between you and the seller. It locks in the price, the deposit, the deadline for the final deed, the property description, existing charges, and the penalties if either side fails to complete. It is not a casual reservation form, however casually some agents present it.
The deposit: the sinal
You will normally pay a deposit of around 10% of the price, though the amount is negotiated and 10 to 20% is common. One thing to know: Portuguese law presumes that any amount you pay the seller under a CPCV is a sinal, a deposit with legal teeth, even if someone calls it an advance or part-payment. The label on the transfer doesn't protect you. The contract does.
The asymmetry
If you default, the seller keeps the deposit. If the seller defaults, you can demand double the deposit back. On a €600,000 purchase with a 10% sinal, that's €60,000 of exposure the moment you sign. This is the single most expensive signature in the whole buying process, and it happens before the deed, not at it.
The mortgage trap
Here is the assumption that costs buyers real money: "my bank refused the mortgage, so the deposit must be returned." It isn't automatic. A refused application, or a low valuation, is not a right to a refund unless the CPCV expressly says so. If you need financing, the contract must contain a suspensive clause for mortgage refusal, with a clear deadline and the evidence required. Get that clause drafted before you sign, not after the bank says no.
What a good CPCV contains
The parties, the property identified by its registry article number, confirmation of clear title, the price, the deposit, the deadline for the deed, any existing charges, what happens with furniture or repairs, and the conditions that must be met. If something matters to your decision, it should be written in the agreement or its attachments. Verbal assurances about move-out dates, included furniture or pending repairs are worth nothing later.
When to sign it
After your lawyer has checked the land registry, not before. New owners inherit a property's debts in Portugal, so the checks on ownership, charges, licences and planning restrictions come first. And the deposit should not go straight to the seller: it belongs in escrow or with a neutral party. The whole process from agreement to signed CPCV typically takes four to six weeks, with completion at the deed usually 30 to 90 days later.
How I help
I make sure no client of mine signs a CPCV that their independent lawyer hasn't reviewed first, and that the suspensive clauses match their actual situation: financing, valuation, due diligence still open. The agent who found you the house should never be the only person reading the contract that commits your deposit. That is exactly the gap a buyer's agent exists to fill.
Sources
- The CPCV is a legally binding preliminary contract recording the property, price, payment terms, deposit, deadline for the definitive contract, existing charges and the consequences of failing to complete; deposits of 10-20% are common (currencytransfer.com)
- The deposit (sinal) is normally 10% but negotiable; if the seller defaults they must return double, if the buyer defaults the seller keeps it (lexidy.com)
- Portuguese law presumes every amount paid by the promissory buyer under a property CPCV is a sinal, even when described as an advance or part-payment (the-o.legal)
- Mortgage buyers should include a suspensive clause for mortgage refusal with a clear deadline and required evidence; a refused application or low valuation alone is not an automatic right to a refund (cafimo.pt; pctechmag.com)
- Standard terms: deposit typically 10-30%, completion usually 30-90 days after signing; finalising a CPCV takes 4-6 weeks (bozeco.com; lexidy.com)
- Do not sign before the lawyer has verified the land registry; the deposit should go to escrow or a neutral party, not directly to the seller (bozeco.com; consultoresimobiliarios.com)